Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. However despite the fact that the company is big, it has not survived or evaded the normal challenges that corporations go through, irrespective of whether private or public (David, 2012). For instance, the living wage bill of the United States resulted in Wal-Mat threatening to close down its stalls in the United States. Due to its resolution to cutting down on its employees, Wal-Mart has also been characterized by customer complaints as a result of empty shelves.
This served as an advantage to the competitors such as the Kohl’s, Safeway, Target, and Walgreens. In February this year, 2013, Wal-Mart was placed last among the department and discount stores in the American Satisfaction index, and has been taking the last position or tying up for the last six years (David, 2012). In international markets also the Wal-Mart stores is having a fair share of difficulties. In India, Wal-Mart is struggling with establishing itself on the Indian market due to the restrictions on foreign companies. This has resulted in the Indian authorities rolling investigations into the recent actions of the stores of investing US$. 100 million into a consultancy farm. Also the Wal-Mat refused to continue any partnership with an Indian company.
Wal-Mart’s main objectives are Lines extension and stores expansion. With this, the company has a range of strategies which focus on customer satisfaction and team spirit. The strategies have been categorized into domestic and international strategies and programs respectively. Wal-Mart has four parts to their corporate strategy which include; Dominance in the retail Market, Expansion in the United States and international markets, Creation of a positive brand and company recognition, and branching out into new sectors of retail. These strategies have been well used by the store leading to its current ranking as the world’s leading largest stores.
As many companies, there exist a number of opportunities for Wal-Mart, which if the right strategy is employed in taming the opportunity, it can be of great benefit to the company. There is the rising acceptance of own label products by consumers in stores outlets worldwide as an opportunity. To tame this opportunity, Wal-Mart can employ their Creation of a positive brand and company recognition strategy. As the company aims to create a positive impression of customer satisfaction with the Wal-Mart brand, their goal is to have the customer associate the retailer with the reputation of offering the best prices (David, 2012). Owing to their wide spread scale of operation and that they are already accepted by people across the world, they can easily develop more own label products and services by forward and backward integration. The company should engage more in partnerships and co-branding, that are going to lead into wide spread own label...