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Wal Mart Circumstance Examination Management Essay

Wal-Mart the world's major dealer was founded in 1962, working in 15 different countries. Sam Walton's (creator of Wal-Mart) goal is, saving people's money to make sure they are live better through their low pricing strategy. With sales of around $405 billion this year 2010, "Wal-Mart is placed as world's first merchant in Fortune Magazine's 2010 list, under most admired company's category". Despite these figures Wal-Mart is currently facing high criticism in terms of supplier human relationships, product quality, and brand value, number of legislations suits and poor competition/customer or market understanding.

Key Issues

Slow growth in comparison to past, getting rid of brand value because of many reasons such as

Single strategic strategy as one strategy never will fit all needs.

Poor quality services & products.

Losing market talk about to opponents.

Losing trust because of Rules suits filed on unfair labor procedures such as low income, intimacy discrimination in pay, promotion and compensation, violation of child labor laws and regulations, erotic harassment.

High criticism on provider relationships.

Opposition to growth programs in smaller neighborhoods from local merchants & customers.

Problem Defined

The major problem Wal-Mart is facing right now seems to be their single tactical approach.

Alternative Solutions

Define new strategies & refine core-competencies to increase competitive edge by better understanding changing customer needs, industry trends, and competitive environment and improved upon customer loyality, and staff morale.

Advantage of the strategy is if proper strategies & main competencies were produced it can solve all problems related to competition, customer, product as wells as employees.

Understand local customer, market needs and offer products & services consequently.

Even though Wal-Mart is now able to maintain and gain earnings due to its globally interesting low prices strategy, we never really know what happens in future as it's not constant therefore many stores already started getting customers providing quality products more or less at low prices. Also Wal-Mart is facing lot of criticism in its poor current or future market understanding and its own finding difficult time to expand into smaller neighborhoods as local merchants & people are opposing them as a result of fear it lower pay and increase unemployment rate.

So this process is effective if Wal-Mart can review local market needs and offer products & services still at low prices.

Selected Solution

I like first way because the key concern with Wal-Mart is low prices. Most of the retailers now are trying to permeate into market and take up more market share with their balanced procedure of providing necessary goods at lower prices and luxury products at reasonable prices in comparison to challengers. If Wal-Mart believes through to improve their strategic methods & key competencies to suite needs of the marketplace internationally by better understanding customer needs and competition moves.

Implementation and Recommendation

One of the primary explanations why Wal-Mart may well not satisfy global customer needs now or forseeable future is its in-effectiveness in using low charges strategy properly, everything else is related. See how

Poor local market understanding - Wal-Mart always tried out imposing their solitary strategy considering on global market segments but as you know one strategy might not provide all needs, people needs are changing, customers are looking for quality products & services, complex customer service & shopping experiences. Hence strategy has to be changed as per the location what your location is working and corresponding market needs & wishes, ex:- compensate low pricing on necessary products with luxury products yet retaining same quality.

Low salary, no worker morale & dedication - Due to its low pricing strategy Wal-Mart is pushing using labor with low pay or temporary staff which are not well trained, hence dropping worker morale & dedication which is the primary reason behind poor products and services.

Poor or bad provider relationships, laws suits, slow growth rate, high criticism are result of not using single low prices strategy effectively.

So implementation of this approach is to come up with strategies to improve market show keeping in mind below implementation points.

Strategies to keep up good supplier connections to get products at acceptable prices.

Developing worker morale, engagement and dedication through training programs, market equal wages, selecting skilled people, creating honest, honest staff & management human relationships.

Few neighborhoods favor quality over low prices, so company has to deliver such services at same level as expected by studying marketplaces thoroughly.

Strategies to build superior customer support & shopping experiences.

Changing store platforms as per local market needs & customer tastes.

More customer concentration rather than seeking to pull them by simply offering low prices.

Information technology ways of create next technology stores, customer experiences & superior shopping experience.


Wal-Mart having global occurrence can manage revenue and sustain currently. However in future it's hard to keep jogging the business further since market needs, customer preference are changing as everybody knows that same strategy might not suite all needs which is actually true in case of Wal-Mart. This gradual growth rate and decreasing brand value is clear indication of its downfall. So Wal-Mart has to keep changing its strategies as per individual market needs and customer choices. We all know core-competencies & proper approaches are not constant, each of them change as environment where they operate changes. Change is common and change management activities (firm design, it & organizational development) should be completed remember the customer value, customer satisfaction in mind as they are interrelated. Unless Wal-Mart adapts to growing various market needs and changes by increasing customer value, it's hard to propel as a global organization.

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