Wal market?s future?Analysis of strategic actions for Wal mart to sustainBeing the world?s stupendousst private sell company, Wal mart has been use a combination of low prices and relentless expansion to step forward from rural Arkanas to reshape the retail business in the States (The Wall Street Journal, 2007). It is successful until 2006 when it reported its first defy in quarterly income in 10 years (People Daily, 2006) and national same-store gross revenue crept up by just 1.9 percentage in 2006, both are the worst showing in Wal-Mart?s history. Wal mart sales growth rate has also fall since 2006 and it has lost its battle with its major competitors, Target and Costco (Douglas J., 2006) (see figure 1 and 2). To increase sales, it imitates its competitors by selling priority products including home décor, electronics and fashion items. All are not having satisfactory results. The dissolve of this paper is to examine the underlying reasons for the slow follow out hack in sales growth for Wal mart, evaluation of existing strategies, and passport to fine tune its strategies to support its growth.
Underlying reasons for the slow down trend in sales growth for Wal mart and evaluation of existing strategiesBefore illustrating why it encounters the above problems, the importance of maintaining not except a particular sales volume, but having a sales growth should be discussed first.
Firstly, Douglas J. observed that major players in the U.S. retail industry such as Chico?s, Kohl?s, J.C. Penney and Best Buy are all opening new stores. These are the survivors or innovators of the shoemakers last major retailing cycle (i.e. the value era) and they are hush up operating healthily after Wal mart has gained its renowned large operation scale. Secondly, these value retailers are differentiating themselves more than just discounters as Wal mart is claiming itself. They try...
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