-Mart Stores, Inc.: Strategies For Dominance In The New Millennium
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Problem:
What would be the Wal-Marts “BIG” strategy for the next decade to allow for them to stay as world retailer leader and continue increasing sales and profits? How to sustain their extraordinary growth, as the domestic market reaches saturation, a strategy for at home and for global expansion will be necessary?
Competition:
Competitors are specific organizations that offer the same or similar goods and services to the same consumer or client groups. Target and K-Mart are Wal-Marts major competitors. A Company has an obligation to act in ways that serve both its own interests and that of its stakeholders. This is known as corporate social responsibility.
SWOT Analysis
Strengths
Wal-Mart has a great reputation. Wal-Mart is a powerful retail brand. I feel like all my basic shopping needs can be met at their stores without dealing with the high prices of other stores. Wal-Mart believes that by lowering the markup, they will earn more because of increased volume, thereby bringing consumers added value for the dollar everyday.
The companys core competence is to use information technology as support of its domestic and international logistics system. Through this support they can see how individual products are performing country-wide, store-by-store at a glance.
A focused strategy is in place for human resource management and development. People are key to Wal-Marts business and it invests time and money in training people.
Weaknesses
Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors. The company is global, but has a presence in relatively few countries Worldwide.
Wal-Mart has had some past planning failures. Their “Bring it home to the U.S.A.”
Opportunities
Wal-Mart has gained a competitive advantage in the speed with which it delivers goods to the customer. Because of the innovative technology that Wal-Mart has already attained and will attain in the future gives Wal-Mart the competitive advantage. The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as Europe, China and India. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers.
Threats
If you are #1 it means that you are the target of competition, locally and globally. Wal-Mart has the core competencies that allow them to be better than their competitors. It is almost impossible to duplicate what Wal-Mart has to offer. Being a global retailer means that you are exposed to political problems in the countries that you operate