Wal Mart Case

Topics: Strategic management, Multinational corporation, Department store Pages: 9 (3256 words) Published: April 17, 2013


How Could Wal Mart Continue Its Extraordinary Growth Management Essay Introduction
The history of Wal-Mart started in 1962 with the opening of its first store in Arkansas, USA. The store stared as a retailer in the United States, but grew to reach extraordinary levels in the years to come. Wal-Mart grew rapidly, and used several methods to accomplish this growth. They opened their own stores as well as acquiring existing stores and chains to facilitate their entry to the new markets. The growth was not limited to the number of stores that the company opened, but it extended to the areas of operation for the store. For example, Wal-Mart entered new areas of business as it grew like pharmacies and jewelries. Wal-Mart followed an aggressive expansion strategy that was the model for their business for years, redefining concepts as they grew. But what is Wal-Mart. The store can be described as the following. It is chain of discount department stores that operate with the purpose of reducing prices, and focusing on the volume of sales. The company’s growth is extraordinary in every sense; Wal-Mart is currently the world’s largest company by sales. Wal-Mart has recorded $260 billion in sales in 2005. The company manages over 5000 stores worldwide, 3200 of the stores located in the US, 900 in the Americas, 350 in Europe, and 440 in Asia. Wal-Mart employs a very large workforce, it has over 2 million employees, and the number is gradually increasing. Wal-Mart has adopted advance mean of technology to help it run its operations, this methods helped the growth of the company. But can Wal-Mart continue with the same level of growth. A company needs to maintain growth, and to Wal-Mart a reduction in the level of growth would be a cause of concern for the company’s stakeholders, because growth has a competitive advantage for Wal-Mart ever since it started. But in the saturated business of retail can Wal-Mart sustain the levels of growth anymore. SWOT Analysis

Can Wal-Mart maintain the level of growth it has seen any longer? The company has made a reputation on the bases of their growth can they keep it up, to answer that we need to conduct an analysis of the company and see elements that could determine this. A SWOT analysis would give us the needed insight. Strengths

Wal-Mart is the largest company in the world; it has large volume of sales and operates over 500 stores worldwide, with 100 million clients a week. Wal-Mart has a great standing in the domestic market based on the low pricing methods they have used. Wal-Mart can change their formula to fit the market.(stores, supercenters, sam’s club, and neighborhood markets) Wal-Mart utilizes the latest technologies in inventory management to control their large inventory, and they have a wide range of products reaching over 100,000 items. Weaknesses

Wal-Mart has faced criticism regarding their management of human resources, including accusation of the use of child labor, low pay for employees by industry standards, lack of benefit like health care, and reliance on temporary workers to lower their cost. The huge size of the company causes issues, like in the case of acquiring international ventures and integrating then in the Wal-Mart system. Despite its size it has a week presence and brand image in the international market. Opportunities

Wal-Mart has a competitive advantage over its rivals; their incorporation of the latest technologies in their daily operation increases the efficiency of these operations and saves them some money while trying to enter new markets. So they would have an easier time that their rivals. Wal-Mart can further expand into Europe and Asia, both huge markets that Wal-Mart have not began to fully pursue. Wal-Mart can use their adaptability and introduce cultural clusters products. For example utilize the model...
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