As Walmart is a very large company that sells products on all areas of the spectrum, it becomes more difficult to compete with other retail brands that are focused on specific products for certain targets. As there is a vast amount of products being sold, it becomes easy to lose concentration on perfecting certain products which result in cheaper quality and less consumers would purchase such products if there are more developed products in the market. To create a recommendation to decrease this issue it would be an excellent idea for Walmart to determine the products that are most wanted by consumers and doing best in the market and focus on improving them, and attempt to re examine products that are not being regularly sold and possibly removing them in order to use the money spent on these products towards products that are going to increase business for the corporation. Walmart is a globally known corporation who has been serving countries internationally for many years, although as the international aspect of the corporation is an important part, it also demands a large amount of responsibility in order to respectively serve all countries involved in such way where the needs are obtained and business increases for the corporation.
Based on the SWOT analysis, as the corporation is internationally branched, the company must be on top of the countries political aspects and manufacturing costs. Walmart must be supremely aware of the countries financial standings and in order to succeed in a business perspective, the company as a whole must take precautions to avoid any personal problems of the country to have an affect on their business. For example, as manufacturing costs have fallen in some countries, the corporation is in charge of ensuring everything business wise is in order and it is recommended to have specific members of the corporation to constantly keep track of the international stores to be aware of any economic changes in order to uphold business.
The corporation of Walmart is well known for the pricing strategy of using the slogan “Every day Low Prices” or EDLP. As this slogan has increased many sales in the beginning of the strategy being used, over time it became difficult for Walmart to compete with other companies who are selling the same products for higher prices and possibly higher quality. Companies such as Amazon, and Costco are strong rivals for Walmart as they sell similar products although many people view Walmart’s quality as a cheaper alternative. As a recommendation for the pricing competition problem, it would be beneficial for the company to plan out the prices placed on each product in correlation with the quality as higher quality products should be strategically priced in order to please consumers and also to maintain business for the corporation. As lower prices are usually successful in the consumer’s eye although in terms of business it may be a disadvantage if not used in a responsible way. In other words, Walmart must improve HR management standards and product quality standards to improve marketing performance.
As Walmart is a corporation that is constantly growing there are many different aspects that must be considered and placed under control. The corporation is known as a global company although a weakness that the company is dealing with is the lack of stores worldwide. Walmart is respectively a global corporation although there is a decline in stores in countries outside of North America. In order to become a company that is able to adapt to other cultures and different standards, it would be very beneficial for Walmart to branch out and create more stores internationally to obtain the experience and build a great impact on a larger crowd.
For example, France would strongly benefit from a company like Walmart as it is a “club store” and the country lacks major companies as it specifies in more local stores that sell less variety of products. As France is part of Europe, if Walmart succeeds in France it would be an excellent way to create more stores all across the continent. A more business related problem, Walmart only partly satisfies the interests of its own employees because they continue to get low wages. This is a huge disadvantage because it can affect the employee performance and commitment to their job.
Typically if you are performing a lot of labour and putting a lot of effort into your job you would like to receive a pleasing and exceptional wage.Walmart is a big corporation and the superstores are very big with tons of customers everyday. It does take a lot of employees to satisfy customer needs and help consumers. The company is only 50% effective in addressing stakeholders’ interests. In order to better satisfy the stakeholders interests, and make employee performance better, more efficient and to reduce complaints from consumers, Walmart must start making some changes in its business. An improvement would be for the company to make a small but significant increase for employees wages across the board. This way the employees are happy, they will have excellent performance and the consumers will be happy too with the services provided which all benefits the company in the end.
A little increase in wages can go a long way for walmart’s future investments.Similar to how Walmart only partially satisfies its own employees, the firm also fails in satisfying the interests of their product suppliers since walmart loves such low prices on products. Well of course in order to sell cheap to consumers they have to buy cheap from suppliers in order to have some sort of profit. Therefore walmart can improve their relations with suppliers by meeting the suppliers halfway in the middle instead of asking for excessively low prices. This recommendation may lead to a slight increase in their selling prices in Walmart stores, however in the long run they can improve the company’s position as a corporate citizen and in stakeholder management.
Walmart can benefit greatly by investing in customer service, improving the customer experience, apart from increasing employee wage for better performance, the company can also improve their image in stores to make the customers experience better and more efficient. Empty shelves and slow checkout lines are two major problems impacting customers at low performance stores and causing their image to look bad. Which also repels customers, walmart customers will start going to other superstores or doing their shopping through e-commerce. To fix these problems, the company should work on improving its inventory efficiency and it’s planning to open more checkout lines than ever before during peak shopping hours daily because when consumers are in a hurry or have only little shopping to do they don’t want to wait in lines, they would rather take alternates and shop somewhere else. The company should also improve its staffing levels, by doing some research in their stores to see if there’s a sufficient amount of workers on the floor to assist customers and to meet the customers needs and questions they can observe how associates interact with customers and see where improvements need to be made to better the customer experience.As for expanding, Walmart has very strong prospects and motives for entering into the Asian and European markets, however the current growth strategy of widening product ranges and geographical expansion put the corporation at a risk of losing operational control along with resources being stretched too much.
Therefore Walmart should first focus on product expansion strategies instead of international expansion which can wait for now. They should first research the market well and focus on areas where it can do best. As well as shut down certain stores in countries that are not performing well in terms of business. If walmart continues to work and develop on its strengths it can effectively tackle threats.