Using Strength and Grabbing Opportunities Essay Example

website is not the most popular choice for buying things from the company. Wal-Mart needs to focus more on how to attract customers to their online store, by perhaps offering lower product prices on the internet site than what is posted right now, since it was diagnosed that one of the main factors why online sales are small is because prices on the website are significantly higher than those in the physical stores.

Employee policies also need to be redesigned, as the current one does not seem to be working for Wal-Mart employees.

The consequences of opening of new stores might prove more difficult for the firm if the threats are not addressed, which is why policies for new store opening also need to be reconsidered. Growth Potential The success of Wal-Mart’s growth model is legendary. The company has grown from a single store in a remote part of the United States to become the largest, most powerful retailer in the world.

It is a strong assertion of this paper that Wal-Mart CAN continue to grow, if only for the fact that at the core of their success lies a single powerful and tried and tested message: create a simple business model that provides consumers with the products they want at rock-bottom prices. Wal-Mart has been able to leverage and replicate its core strengths: its process for selecting new store locations, its vendor negotiation and relationship management process, and its supply chain management systems.

The powerful concept behind these strengths is that as Wal-Mart grows, the strengths are reinforced.

This rock-solid foundation is the reason why the potential to grow more than

where they are right now is an extremely plausible direction. Wal-Mart also embraces many other traits of operationally excellent growth companies. It capitalizes on the consolidation of its supplier industries.

In fact, Wal-Mart is so big that it regularly accounts for one-third, or more, of the sales revenue of consumer product giants such as Procter & Gamble and Mattel (Marquard and Birchard, 2007). The bigger Wal-Mart becomes, the greater is its purchasing power and economies of scale in its supply chain. This means that it can continuously improve its cost position and offer even lower prices to consumers, which in turn allows it to increase market share and start the growth process again.

Essentially, Wal-Mart’s business model allows it to become even stronger as it expands its business. It is a powerful growth engine, so little doubt is left in anyone’s mind about its future course.

REFERENCES

Brunn, S. (2006).

Wal-Mart World: The World’s Biggest Corporation in the Global Economy. New York: Routledge. Marquard, W. & Birchard, B.

(2007). Wal-Smart: What it takes to Profit in a Wal-Mart World. New York: McGraw-Hill Professional. Spotts, G. & Greenwald, R. (2005).

Wal-Mart: The High Cost of Low Price. New York: The Disinformation Company Ltd.