Case Analysise Essay Example

greater growth.

Should Wal-Mart expand the convenient store concept in China and other markets? Yes, there is incredible potential for these stores. The idea of local community stores in China seems like a strong idea; however, as corporate is doing, this must be proven successful before being further implemented. -Should Wal-Mart get a foothold in Europe before competitors seize the initiative? Yes, as competitors begin to control the market, the harder it will be for Wal-Mart to get their foot in the door. -Should Wal-Mart expand further in Mexico, the United States, or Canada?

Wal-Mart should definitely expand in Canada; they currently have a small market share. Their share has great potential for growth. In the United States they should increase their grocery stores. I live in San Diego, and there is not a Wal-Mart grocery store around. -Is Wal-Mart’s rate of growth of Supercenters too fast? They may want to thoroughly observe whether or not their growth is too fast. As the new superstores are in place over time, Wal-Mart will see if their surge in customers will remain as new competitors may arise. What private-label products should Wal-Mart consider developing?

Wal-Mart should create more private label electronic products; they have the capitol to invest in the production of new products. I really believe that this would increase their dominance. Another idea is organic food. At first glance this may seem ridiculous because of their cheap customer reputation. However, many of their customers may be buying organic products at other store right now. Having these products in-store might be worth looking in to. -What can Wal-Mart do to improve its Sam’s

Clubs operations?

Costco is known for only carrying products of superior quality; on the other hand, Wal-Mart is known for carrying cheap products. They must try not to relate Sam’s Club with Wal-Mart, as Sam’s Club needs to have more of a Costco reputation than Wal-Mart. If it can be established in the consumer eye that Sam’s Club is superior to Costco in price and quality, there is potential to improve their future development. Develop a three-year strategic plan for CEO Mike Duke. Market Penetration- Over the three year period continually try to increase their market share of the current products they sell.

Competing with grocery stores and electronic stores must be a top priority through marketing. Develop Sam’s Club- Begin to examine the weak areas of current operations and improve them. Also, find weaknesses in Costco’s operations (which won’t be easy) and make those areas a position of strength. Seek to shrink revenue gap between the competitors by 50%. International Expansion- Continue to expand in China, with caution and following the current trends. Also, begin to look for opportunities to expand into Europe as the market is open.