Business / -Mart Stores, Inc.: Strategies For Dominance In The New Millennium
-Mart Stores, Inc.: Strategies For Dominance In The New MillenniumThis essay -Mart Stores, Inc.: Strategies For Dominance In The New Millennium is available for you on Essays24.com! Search Term Papers, College Essay Examples and Free Essays on Essays24.com - full papers database.
Autor: anton 01 April 2011
Words: 726 | Pages: 3
What would be the Wal-Martâ€™s â€œBIGâ€ 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?
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-Martâ€™s 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.
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 consumersâ€™ added value for the dollar everyday.
The companyâ€™s 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-Mart's business and it invests time and money in training people.
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 â€œBring it home to the U.S.A.â€
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.
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 in.
The cost of producing products tends to have fallen because of lower manufacturing costs and these costs have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition. Intense price competition is a threat.
Wal-Mart has to nurture the primary core competence that helped their growth: fulfilling customer needs with a wide spectrum of products at â€œeveryday low pricesâ€. This competence is defined as set of skills and organization boundaries: Wal-Mart is a leader in channel management, inventory control, distribution and customer service. This is a result of the companyâ€™s ability to coordinate a complex IT management and distributing network. Wal-Martâ€™s communications network connects all stores, warehouses, offices and suppliers. This enables Wal-Mart to not only provide value to its customers by offering a wide variety of goods at the lowest prices, but also to provide value to its suppliers as a large, ever present channel for sale of goods.
To sustain their phenomenal growth, these core competencies must be intrinsic to a strategy designed to transfer Wal-Martâ€™s competitive advantages into the global marketplace. Management should continuously benchmark operating results and best practices against those of their competitors. This includes not only Target and K-Mart, but the major supermarket chains as well. All of the abovementioned competencies are critical to global expansion, but patience and commitment are paramount to implement the systems and to develop an organizational culture as effective as that found in the U.S.
Wal-Mart is doing beyond an exceptional job in creating and maintaining one of the biggest corporal giants in the world. I believe with further future innovation just to keep up with the times Wal-Mart will be more successful than it already is. If any suggestions should be made to Wal-Mart, the only one to be thought of would be to keep up the â€œGood Work.â€
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