Wal-Mart's Opportunities Essay

593 WordsFeb 11, 20153 Pages
Wal-Mart’s Opportunities Issues The biggest problem for Wal-Mart is connected to the threat of rivalry. Competitors created an environment where a well-established company like Wal-Mart have a hard time to continue growing in the market. Since its first years, Walmart has had a massive impact on the market, growing quickly and sometimes overwhelmingly to reach the reputation of “richest company in the U.S.”. Later, however, towards the end of the 2000s, Walmart experienced a decrease in growth. The decrease in revenues was due to more specialized competition from retail competitors to Wal-Mart. Kmart, and Target – among others – were building a stronger culture, improving employee benefits, and strengthening loyalty as a result among their customers and employees. These strategic changes began to give them a competitive advantage over Wal-Mart. Wal-Mart, on the other hand, began losing their workforce in part because of their low wages policy created to keep prices down which in turn created malcontent among employees—publicity around which started shifting consumer behaviour as well—and away from Wal-Mart. Additionally, as internet shopping started to take a larger piece of the consumer ‘pie,’ Wal-Mart could not keep the pace of its direct opponents. Internet-based companies such as Amazon, offered competitive prices, quick delivery, and a user-friendly experience, making it difficult for even Wal-Mart to keep pace. Internet sales within Wal-Mart were too low to compete with internet-based companies, perhaps due to the company not budgeting enough to improve this branch of the company. They was focusing efforts on what they knew best: in-store sales and competitive prices, but these strategic decisions have proven not to be enough to give the company a competitive advantage in this changing consumer-satisfaction environment. Wal-Mart’s focus was on in-store
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