Wal-Mart Is a Very Competitive Company - Assignment Example

3. The store felt the effect of slow economic growth. For example, in 2010 the company recorded low profits for the holiday quarter. The management blamed the sluggish global economy for the decrease in profits. Additionally, Wal-Mart’s management argued that the cuts in food stamps would hurt the profits. They further singled out high taxation, reductions in government benefits, and tighter credit as threats to the store’s profits.   4. The store evolves around social trends. For instance, Wal-Mart’s top management has embraced online shopping. Additionally, the business goes in line with the customers’ demand for healthier foods.  However, Wal-Mart did not embrace the use of technology early. The store’s founder, Sam Walton, did not care about technology. Currently, the store’s website is behind its competitors. Their marketing in social media did not yield much success.     5. The store has plans to cover any potential risk factors. The factors include the natural disasters that may happen in the future. Natural disasters include earthquakes and floods.   SWOT analysis STRENGTHS • Good in information systems • Low cost of operations • Wide range of goods and services • International business • Large scale of operations WEAKNESSES • Lawsuits related to labor • High employee turnover • Poor public image • Little differentiation OPPORTUNITIES • Growing retail markets in emerging economies • Rise in acceptance of own-label products • Trends toward healthy living • Growth in online shopping THREATS • Increase in competition especially from brick-and-mortar competitors.  • Increasing resistance from local communities • Rising commodity prices • Deteriorating global economy      6.    Problem statement The statement of the problem is how will Wal-Mart increase sales with the improvement the management did in operations.  7.    Alternatives   The alternative is for the store to give the best customer experience to its customers and hire employees that would give better service to the customers. Additionally, they have to make their business more attractive by making classy colors inside the store. Furthermore, the store has to give low prices for their goods.    8.    Evaluation An improvement in the store’s public image will be a sign that they have improved the customer experience. If there will be an increase in the number of customers, it will be evident the store has reduced its prices and the goods are more affordable to all. A general rise in profits will indicate the store has implemented all its alternatives.   9.    Analysis of alternatives The company will be in the right direction if it improves the customer experience. However, no one can fulfill human wants because they are insatiable. Additionally, a reduction in price to attract more customers would hurt the store’s profits.   10.    Recommendations The paper recommends the store open more branches. It will make the store more popular globally. The management should consider more convenient places to open branches to attract additional customers. An increase in branches will increase the sales.   11.    Action plan For the plan of action, the store has to look for investors. The investors will bring in capital that will open new branches. Additionally, the management needs to choose a convenient place to open branches. The store should hire more employees who would work in these stores.    12.    Contingency plan In case the action plan does not work; the store should form business collaborations with its competitors. It will help maximize the customer base and increase the number of sales. (Joy, 2013)   Read More