Wal-Mart is one of America’s largest multinational retailing corporations. The company runs chains of large discount department and warehouse stores. The company boasts of over 260 billion in salsas of the year 2005 as well as about 500 stores in ten countries around the world (Yoffie 1).
In light of continued competition form its rivals in the market the management of the company are forced to explore ways in which sustained growth of the company can be maintained. As the company did when it faced first –time competition in the late nineties, the company may sustain its growth by formulating a strategy to improve its store formats. In recent years the company has changed its store formats from warehousing to convenient discount retail stores and gradually to modern super store formats where everything can be found under one roof but under different sections. The maximization of this approach with respect to different contexts and cultures of their locations would help maximize the company’s sales in various places around the world. The company’s focus on price-sensitive consumers in these stores will continue to aid in attracting more customers; a key element in company growth.
The company’s deployment of modern technology in its stores in the last few years has been helpful to it in cutting human capital-related costs ad well as making the business process efficient and less tedious. The continued use of this technology, such as the investment in RFID tracking chips, more efficient machines to aid in payment systems, recording , planning, systems these will continue to cut company losses, improve their internal procedures and gradually increase sales. Technology may also make communication between different Wal-Mart stores a more efficient process.
The company’s expansion plans should be continually expanded and expansion into new regions explored. Expansion in countries where Wal-Mart already has stores should be pursued so as to take advantage of opportunities for setting up more stores in those countries. The company would do well to make sure that it aligns its own organizational culture with that of hosting nations. This will serve to integrate it better into new territory and afford it growth in sales.
In the same light, wall mart should seek to understand the specific needs of consumers in new regions so as to make sure that the company takes advantage of such opportunities. The African market for instance has not been explored by the multinational. The continued and sustained growth of the company also depends on the consistent introduction of new products and services. The diversification of products in-services by the store positions it to grow rapidly as it strives to meet new consumer needs and avail better services.
The company’s efficient management of its human resource is very crucial to its growth boo thin the U.S and in other areas. The implementation of employee friendly policies is necessary to rid the company of its bad reputation when it comes to hardening employees. They should for instance allow for the unionization of their employees and strive to employ more permanent employees. The loyalty this may create in the employees would lead to better services and eventually have an impact on company growth.
The limitations of such growth for this company would lie in the inaccessibility of some territories to the company or the unreceptive ness of the multinational by some countries. The existence if already established stores in some countries may also lead to tee lack of receptiveness for the multinational in some countries or its lack of growth there. In many places the company may have space limitations or infrastructural limitations which are a necessary consideration in the setting up of a multinational chain store branch. Some countries may just not be receptive to a store as big as Wal-Mart. In others still political turmoil and unfriendly investor environments and unstable economies may also limit Wal-Mart’s establishment there.
Asia and Europe as well as Latin America have really provided a good opportunity for the expansion of the multinational. These places have presented a big opportunity for the growth of the multinational, offering relatively little competition as compared to the U.S. BY the year 2004, Wal-Mart had already managed to obtain a big part of the market share in these areas. Through acquisition and partnerships, the company had been able to secure over 1700 stores outside the United States. In this respect the company is able to take advantage of its established presence in these areas to open up more branches as well as diversify its businesses there.
Works Cited
Yoffie,David.B.and Mack, Barbara J. Wal-Mart , 2005. Boston: HBS Publishing
