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Walmart Case Study

Essay by   •  March 30, 2012  •  Case Study  •  365 Words (2 Pages)  •  1,434 Views

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1. Globalisation

1.1. Issue

As identified by Glass and Soderquist, one of the key problems faced by Wal-Mart currently is the recent drop in value of Wal-Mart stock. The drop in stock value was attributable to the fall in the level of Wal-Mart's growth. Having grown vigorously over the past decades it is unsurprising that the growth rate of Wal-Mart is starting to decline.

1.2. Suggestion

It is submitted that this problem may possibly be overcome through globalization. International expansion could give Wal-Mart the much needed growth spurt. Wal-Mart's success in its initial years was attributable to its ability to enter key geographic markets and benefit from an early mover advantage. A similar strategy could be adopted with respect to the international market.

For this, Wal-Mart would first have to assess the international market. This would require analyzing for instance what products or services are already available, who are the strong players in the market, and whether it would be possible to compete with these players; the choice to enter a country ought t o be made strategically based on local demand and Wal-Mart's ability to implement its key set of activities within the chosen country. Globalisation is likely to be successful for Wal-Mart since it would provide Wal-Mart with an enlarged market in which it may implement its well-developed operations-strategy.

2. Diversification into Food

One of the recent changes implemented by Wal-Mart entails the diversification into food. Admittedly, in general, diversification may not be a wise move from an operations perspective. However, diversification into food products may allow Wal-Mart to drive customer traffic away from general supermarkets and thereby tap into yet another section of the market.

From an operations perspective, such diversification may not necessarily be bad since Wal-Mart has the facilities and infrastructure necessary to support this diversification. For instance, the extensive transport networks and facilities that have been put in place by Wal-Mart would permit it to transport food which often is perishable and requires swift transport.

3. Sustainability

To sustain its success Wal-Mart ought to constantly be aware of it Customers and their needs. Wal-Mart would have to be cognizant of the product and service attributes desired by the market, and focus and improve the right process attributes to satisfy those desires.

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