Essay Writing Help on Wal-Mart’s Global Strategies

Wal-Mart’s Global Strategies

            Wal-Mart is a multinational retail corporation that runs a chain of stores around the world. It was started in 1962 by Sam Walton and has grown into one of the most extraordinary successes in the business history. It has about 5000 stores in 10 countries, 3000 of which are in the United States. It has about 2.2 million associates and serves more than 2 million customers in a week. In order to be a great success, the corporation employed specific strategies to get to where they are, which will be discussed briefly in this essay (Hill et al. 1).

            The company started out with a locality approach. While other retailers focused on urban location, they concentrated on small southern towns where they adopted pricing that was lower than other retailers thus putting them out of business and gaining a larger consumer market while securing a secure profit base. They adopted a cost leadership strategy where they provided quality product and services at a cheaper price than their competitors (Hill et al. 2).

            They came up with improved information system technology like bar code technology and checkout scanners that enabled them to track what was selling most. The improved technology also helped them forecast demand, track and predict inventory levels, create high efficient transportation and most importantly manage customer relations (Hill et al. 2).

            The company has good relations with their employees and it counts as a strategy that enabled them to grow and expand globally. They established a profit sharing scheme with the employees that allowed them to purchase Wal-Mart goods at a discount. The good relation led to increased employee productivity that translated to lower operating costs and higher productivity. Wal-Mart adopted a corporate level strategy where they had a single business perspective. 95% of their revenue comes from grocery business, they did not believe in diversification as a concept of economic growth or maximization of profits. Customers in different countries are treated differently according to their product preferences; this has further boosted their success in the global scene (Wei et al. 7).

            However, even with the business strategies mentioned above there is need for further improvement with the changes coming about in the 21st century. With the change of technology there is “online shopping”, which leads to operational changes on the retailer side with lower labor force, infrastructure costs, communication costs thus the retailers will be able to lower their prices further. This will affect Wal-Mart adversely because their core competitive advantage is low price (Wei et al. 7).

            As the company expands to different countries there is need to address the issue of language barrier, pricing difficulties and culture collision that have to be handled effectively. There is need to analyze the demographic changes on a global basis so that they are able to create inventories that are in line with the changes in the demography so as to provide better services (Wei  et al. 5).

The company should improve on their gender equality measures as they are facing legal issues concerning discrimination of employees based on gender. Women are not allowed to lead in supervisory or managerial positions, this can lead to a negative reputation that could lead to a loss of their competitive advantage and the general global expansion as a whole especially in the current situation where the competition between retailers is rampant (Wei et al. 6).

Works Cited

Hill, Charles, Gareth Jones, and Melissa Schilling. Strategic Management: Theory: An Integrated Approach. Cengage Learning, 2014.

Wei, Laura, Wang, Shuojun, and Jiangbo Zhang. Strategic Analysis for Wal-Mart. 2013. Web. March 10 2015.