Wal-Mart's Strategic Challenges Analytical Essay by Nicky

Analyzes five major strategist problems facing Wal-Mart and recommends management direction.
# 149789 | 9,100 words | 36 sources | APA | 2011 | US
Published on Jan 01, 2012 in Business (Companies) , Business (International) , Business (Management)

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This paper relates that the five strategic challenges facing Wal-Mart are getting their U.S. marketing strategy better aligned with their core market segments, developing more effective governance and compliance of their Human Resources (HR) functions, creating more effective international growth strategies based on lessons learned from failures in Germany and Korea, establishing a more effective competitive strategy against Target and other big-box retailers and asserting contingency strategies for managing the company through the beginning of a global recession. Next, the author analyzes each strategy to create specific alternatives and recommendations. The paper looks at alternatives strategies to invest heavily in merchandising and marketing to increase same-store sales, to increase process-related and IT investments so aggressive pricing can be pursued and to enable global market growth by capitalizing on analytics, merchandising, supply chain and technological expertise. The paper includes a SWAT analysis, a Porter Five Forces industry analysis, many tables and graphs.

Table of Contents:
Executive Summary
Re-Aligning the Marketing Strategy for Greater Relevancy
Human Resources Lack Compliance and Governance
Ethnocentrism Rampant In Global Growth Strategies
Competitive Strategies Beyond Price Wars
Responding to an Emerging Recession
Company Analysis
Wal-Mart Strengths
Wal-Mart Weaknesses
Wal-Mart Opportunities
Wal-Mart Threats
Industry Analysis
Threat of New Entry
Competitive Rivalry
Supplier Power
Buyer Power
Threat of Substitution
First Alternative: Heavy Investment in Merchandising and Marketing to Increase Same-Store Sales
Second Alternative: Increase Process-Related and IT Investments
Third Alternative: Enable Global Market Growth
Appendices: Wal-Mart Stores Financial Analysis (2002 - 2008)

From the Paper:

"Wal-Mart did not for example know the structure of psychographic segments in Germany as well as they did in the US as shown in Figure 1, the Wal-Mart Segmentation Strategy. Further, the Wal-Mart had no idea of how the alignment of segments were relative to the model they had seen in the US as shown in Figure 2, Customer Segment Loyalty Analysis would play out. All of this added to the confusion over just who the customer was and what their unique requirements and unmet needs were in shopping at Wal-Mart's acquired stores in Germany in the first place .
"As if this lack of insights into new customers was not challenging enough, the European Union (EU) saw the aggressive supplier relationship management strategies of Wal-Mart as a threat to their most valued industries, agricultural and food production. Both of these industries have extensive tariffs in place to protect them from nations outside of the EU driving up prices and use subsidies to support farmers and growers to alleviate pricing aberrations and fluctuations as well.
"At the center of the merger that Wal-Mart used to gain access to the German market was a focus on creating a hyper-mart, or larger supercenter concept which had been so successful in the U.S. In fact Germans often preferred to shop for bargains in their own neighborhoods first."

Sample of Sources Used:

  • Richard Appelbaum, Nelson Lichtenstein. "A New World of Retail Supremacy: Supply Chains and Workers' Chains in the Age of Wal-Mart. " International Labor and Working Class History 70.1 (2006): 106-125.
  • Tom Belden. . "Big-Box Retailers Target, Wal-Mart Strike Early, Deftly in Toy Price War. " Knight Ridder Tribune Business News 10 December 2003 1.
  • Dave Blanchard. "RFID is off and running at Wal-Mart. " Logistics Today 1
  • Cherie Blanchard, Clare L. Comm, Dennis F.X. Mathaisel. "Adding value to service providers: benchmarking Wal-Mart. " Benchmarking 15.2 (2008): 166-177.
  • Bustillo, Miguel, and Ann Zimmerman.. "Wal-Mart Sparks War Among Big Toy Sellers." Wall Street Journal - Eastern Edition 252.85 (09 Oct. 2008): B1-B2.

Cite this Analytical Essay:

APA Format

Wal-Mart's Strategic Challenges (2012, January 01) Retrieved February 29, 2020, from https://www.academon.com/analytical-essay/wal-mart-strategic-challenges-149789/

MLA Format

"Wal-Mart's Strategic Challenges" 01 January 2012. Web. 29 February. 2020. <https://www.academon.com/analytical-essay/wal-mart-strategic-challenges-149789/>