Wal-Mart is the world’s largest retailer and one of the most successful companies in the world that does not insulate them from future problems or new challenges. Each problem will need to be addressed by the company or else future growth may be affected. With the passing of the founder, Sam Walton, many people question the company’s ability to carry on Sam’s legacy that guided the company to success. The company has a reputation for being responsive to the customer and will surely need to continue this belief in order to be successful.
Competition aimed toward Wal-Mart includes similar discount retail stores as well as grocery supermarkets. Major competitors such as Target and Kmart have been gearing up for direct competition with Wal-Mart in order to regain some market share that has been lost to the industry leader. Often times, when companies experience incredible growth in a relatively short period of time, it can give them a false sense of what to expect in the future. These high expectations may actually cause the company to suffer. Future growth in any company is essential if it intends to stay competitive in today’s economy.
After Sam Walton died, the President confidently responded that nothing would change at Wal-Mart. The principles and the basic values that Mr. Walton used in founding the company were so sound and so universally accepted throughout the entire corporation, that there would be no transition. Following Walton’s death, the company announced that his son, vice chairman of Wal-Mart, would succeed his father as chairman of the board. Management identified four key legacies of Sam Walton to serve as guidelines for the company in the future: everyday low prices, customer service, leadership, and change. As long as these four basic guidelines are embraced in every decision, the new management team will have a solid foundation for continuing the success that Sam Walton began. The management must set the tone, so that the core values and beliefs continue to be instilled throughout the organization
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... for - the customer. 3 Basic Beliefs Sam Walton's 3 Basic Beliefs the company was built on. Sam Walton built Wal-Mart on the revolutionary philosophies of excellence ... of the future. He and his wife, Helen, put up 95 percent of the money for the first Wal-Mart store in ... role of the multinational corporation is crucial to understanding the future of societies throughout the world. Over the past 30 ...
Since Wal-Mart uses a cost-leadership business-level strategy, this inherently gives Wal-Mart some advantages against its competition. Wal-Mart is somewhat protected from industry competitors by its cost advantage. If rivalry within the industry increases and companies start to compete on price, Wal-Mart should be able to resist competition better than the other companies because of its lower costs. This low-cost competitive advantage, or distinctive competency, is Wal-Mart’s advanced inventory control system. The danger that still exists for Wal-Mart is the competition can easily imitate Wal-Mart’s methods. This is already apparent with Target and Kmart building new stores resembling the Supercenter format. These competitors are also emulating Wal-Mart ways by introducing people greeters, upgrading interiors, developing new logos and signage, and introducing new inventory response systems. In order to fight this threat, Wal-Mart needs to exploit its bargaining power over its suppliers and pass the benefits on to its customers in the form of quality brand name items available at lower than competitive prices. This approach will build up customer loyalty and market share and fight off competitors.
Another major factor contributing to the success of these companies is the level of customer service. If all competitors carry the same products, offer similar prices, and have the same type of stores, then the critical component will be the customer service. Wal-Mart needs to stress this fact throughout the entire organization in order to continue its dominance in the industry. Training employees, recognizing achievements, encouraging input, offering incentive programs, and giving employees some decision-making power will help create a dedicated and very productive work force, should give birth to superior customer service.
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... new jobs, customer traffic and increased tax revenues. Wal-Mart is great for the economy in that it brings competition to other competitors and ... up with ideas and suggestions to make the company better. At each of the Wal-Mart stores, signs are displayed which read, Our People ...
For more than 25 years, the company has experienced tremendous growth, but the question now is, if the company can sustain this type of growth in the future. Wal-Mart executives believe that there is more opportunity ahead of them than behind them. In order to sustain this type of growth in the future, the company must adhere to its aggressive expansion strategy. Opening new stores in densely populated areas, locating stores in contiguous areas, and expanding into new countries will help future growth.
However, the company must not let itself become consumed with the need to grow, as this could become detrimental to the company. Careful consideration is needed for every new store location, which is the responsibility of Wal-Mart management.
