Executive Summary

The company of Walmart since its inception has continued to remain and sustain its top position in the Fortune 500 list for a repetitive period for the past several years. The brand has also recorded a rapid growth in the past years that is mainly driven by the different factors like the low pricing strategy on a daily basis. The sales quantity mainly on the online platform in countries like the US, has also recorded a significant growth in the past years .The innovation center of the Walmart store has some of the most innovative minds working to enhance the progress rate of the all over sales of the Walmart .The data scientists engaged with the publication of the different forms of data and the various forms of the social insights in order to deliver a personalized form of shared experience for satisfying the needs of the customers who are kept at the highest priority by the company of Walmart. In the recent years, Walmart has also given many efforts to create a transformed form of shopping experience that is meant to be delivered for their customers. The main website of Walmart has received more than 100 million unique types of visitors in each month recording a steady growth in the numbers in the past years.

Analysis

The Walmart as a branded company has flourished since its inception due to the maturing form of its business plan in the external market scenario as its core business strategy. The company since its inception has targeted for the different critics present based on the different form of social issues that has raised the production levels from US to the various low wages overseas nations that act as the producers has finally resulted in the depressed form of the wage growth in the US and the other producing countries .The internal factors that act as the growing challenges to the dynamic and the rapid progress rate of the Walmart Company is the probability of the company that might reach the near saturation point where the company will become unable to maintain the sustained levels of high growth and the progress rate.There has been a rise in the prodigious rate of growth of the company of Walmart stores has projected a rise in the cannibalization in the sales of Walmart. Walmart can also face a challenge in the future regarding the drifting away from the original target market structure, which refers to the situation of consumers in the low-income category and subsequently shifts the focus on the low price strategy. There are also hard times that are experienced in the international operations structure, which mainly takes place due to the inability of the company to respond to the various forms of local market structure .America’s unstable political relations with China and now with Iran will also hamper the overall market of Walmart worldwide .The retail business is of highly competitive nature in terms of the industrial performance. Walmart also has the presence of many competitors that give a tough competition to Walmart in the various sectors of the business plan. Apart from the various competitors present, there are other challenges that restricts the rapid form of progress of Walmart. The factors are high form of exit barriers with a sluggish rate of industrial growth, the uneven cost structure of the producing firms and the presence of the price elasticity of demand. The Porters analysis of the Walmart Company highlights various factors, first the factor of the potential entrants have a low probability to enter into the market domain of Walmart because of its saturated market structure. Second, the customers have a high influence on the market structure of Walmart as the modern customer always look for the probability of high deals and get ready to boost up their purchase quantity with the availability of high level of sales and discounts level. The presence of the various substitutes in the market are very high. However, Walmart has a benefit in this respect, which rises from the idea of discounters have lower prices to be offered than what is offered in the other departmental stores. The market of Walmart has experienced a forging relationship with the different forms of suppliers that are essential to conduct the timely action plan of the inventory deliveries.

Recommendation

The company should formulate more feasible forms of business strategies that will result in the fine-tuning into the business strategy. In order to achieve the sound business strategy, the company should roll it performance back to the basic and the initial positioning level due to the presence of the price leader in the market in order to gain the trust of the customers. The company should learn to consider the other competitors in the market and should learn to convince its customers that the products of Walmart are the best. In order to enhance its performance and increase the growth rate, Walmart should more effort in raising the wage of the employees in order to reduce the turnover rate of the company. The company should consider or put in more efforts to expand the operations of the developing countries, as most of its customers will always prefer to consume a cheaper product. The potential countries for marketing the Walmart products can be assumed Vietnam, Indonesia and Philippines. The company should learn to adjust according to the international business strategy in order to make it aligned with the requirements according to the local situation .The company should make efforts to reduce the dependence level on the production levels of China especially in the sectors of the sale of garments and other such products mainly in countries like Bangladesh. The company should take more measures and formulate more strategies to increase the marketing of the products and to enhance its promotional and the branding strategies to attract the interests and the wants of the potential customers of the Walmart product. The company should invest more on the field of research and development to inquire a scientific temper in the manufacturing of the products. The company should also try to retain the interest s of the traditional customers by incorporating various stools like gift in order to sustain the loyalty level of its traditional customers. In order to boost up its production to a rapid rate, the company should also formulate proper platform to align with the other competitive companies in the market in order to reduce the level of competition and increase the sales and the productivity of the company. The company should also have proper business strategies to reduce the cultural and the political barriers that hinders the smooth functioning of the company on the various countries. The company should also enhance its market to only those countries whose foreign policy provides a suitable environment to market its products.

Action Plan