Wal-Mart Stores, Inc. henceforth, Walmart, is a US-based multinational retail corporation operating a chain of stores with a diverse product-line. Wal-Mart Stores Inc (2016) notes that the company was founded in 1962 by Sam Walton, and was later incorporated in 1969. It has its headquarters in Bentonville, Arkansas and has a robust market presence in Mexico, the United States, United Kingdom, Japan, India, China, Brazil, Argentina, and Canada. As of mid-2016, Walmart recorded 11, 570 stores and outlets in 28 countries across the world. By the current standards, Walmart is the world’s leading multinational corporation by revenue (Wal-Mart Stores Inc., 2016). Besides, the company is the leading global private employer with 2.5 million working under its management. It has a massive chain store dealing in entirely all the products in daily use. Walmart product-line are categorized as follows; electronics and office equipment, pharmacy, health and beauty, book, movie and music. Other product lines include sports, fitness and outdoor, toys and video games, home, furniture and patio, home improvements, food stuffs and toiletries, auto and tires, as well as photos and gifts gallery (The New York Times, 2016). This paper identifies apparel as the product-line that might increase Wal Mart’s growth potential if the company were to change its marketing strategy.
Why Walmart Must Focus on and Invest in food stuffs and toiletries to increase its Growth Potential
Being a chain store, Walmart deals in nearly every product that the consumer needs on a daily basis. Research holds that the company that deal in chain stores such as Walmart thrives adequately when they focus their sales on consumables such as food stuffs and toiletries. Walmart’s department of food stuffs and toiletries is diverse and incorporates a broad spectrum of merchandise from different manufacturers. According to Whalley (2010), food stuffs and toiletries are consumables required by customers almost on a daily basis, thus shifting greater focus and investing in this product-line would drastically scale up Walmart growth potentials. Even though there is a massive competition within the chosen product line, Walmart has to craft its projections within the department to entrench its roots in the market for greater consumer appeal. Using the available openings in the market, Walmart may consider undertaking a market research to ensure that it brings to the market some of the most spot-on products, which have irresistible appeal. With enhanced market appeal on food stuffs and toiletries, the company would effortless penetrate new markets while retaining new ones and in so doing, Wal Mart’s growth scale would be magnified (Sherlekar & Sherlekar, 2010). [“Write my essay for me?” Get help here.]
SWOT Analysis of Walmart’s Food Stuffs and Toiletries
The company’s SWOT analysis offers projections into the external and internal forces pertinent to Walmart’s strategy progression in the larger retail industry. Whilst these factors fluctuate over time, the company’s growth hinges on its ability to take advantage of its strengths. Besides, regardless of Walmart’s weaknesses in the retail industry, Nassauer (2015), argues that its strengths are enormous. Additionally, the company may use its strengths to maximize on the opportunities available to it in the retail industry (Hundekar, Appannaiah, Reddy, & Ramanath, 2010). Walmart may also use its market strengths to neutralize the threats it faces in the retail commerce. These market pointers are important elements in ensuring that the company’s food stuffs and toiletries department continues to expand its growth potentials.
(a) Strengths (Internal Forces)
Nassauer (2015) deliberated on Walmart’s commercial operations and noted that the company’s strengths are all linked to the dimensions of its business. Despite the prevailing weaknesses, these strengths enable Walmart to resist the threats it faces. The company’s strengths in the food stuffs and toiletries department are:
- Robust global supply chain
- Global organizational appeal and size
- High supply chain efficiency
The company’s global organizational appeal and size gives it a larger market share to fund its growth potentials preferentially (Panmore Institute, 2016). The massive global supply chain offers Walmart with the resilience to evade the numerous market risks in the retail industry. [Click Essay Writer to order your essay]
(b) Weaknesses (Internal Forces)
The company’s weaknesses sanction challenges on Wal Mart’s ability to resist the threats it faces in the market. According to Nassauer (2015), these market flaws are directly linked to Walmart’s generic strategy in the food stuffs and toiletries department. The department uses the cost leadership broad strategy, which has often led to these weaknesses:
- Easily imitated corporate model
- Thin profit margins in the food stuffs and toiletries department
Thin profit margins usually come about due to the food stuffs and toiletries department’s inclination to cost leadership strategy at Walmart (Panmore Institute, 2016). Because the company minimizes selling prices, Walmart must equally minimize its profit margins in the food stuffs and toiletries department and rely greatly on sales volume.
(c) Opportunities (External Forces)
The company’s opportunities in the food stuffs and toiletries department are mainly about improving business practices and global expansion. According to Nassauer (2015), these opportunities are connected to the prevailing global economic situation in the retail industry. Besides, the human resources capacity in the food stuffs and toiletries department presents greater opportunities for Wal Mart’s growth. Walmart’s has the following opportunities:
- Expansion in new markets
- Development in human resource involvements
- Improvement in quality standardization
The company’s capacity to expand in new markets is based on the food stuffs and toiletries department’s high-growth economic potentials. Conversely, its prospects on human resource practices are directly related to its employment practices’ criticism (Panmore Institute, 2016). Walmart’s capacity to addresses consumers’ concerns would be on providing low-cost products with greater health benefits.
(d) Threats (External Forces)
Wal-Mart’s food stuffs and toiletries department faces the threats which are generally connected to the larger retail industry. The threats prevailing in the department should compel the Wal-Mart Corporation to make drastic competitive strategic changes to enhance its growth scales. The threats Walmart faces are:
- Healthy lifestyle trends
- Aggressive market competition
As for Walmart’s food stuffs and toiletries department, the healthy lifestyle trend poses both an opportunity and a threat. On one hand, these pointers threaten the company’s business because the consumers perceive most of the department’s products are not being too healthful or natural. On the other hand, these pointers offer opportunity for the company to progress its quality standards and shine in the market (Panmore Institute, 2016). Notably, aggressive competition is stubborn threat to Walmart because other big retailers in the market could use more infinite marketing strategies to capture some of the company’s market niches.
Walmart’s SWOT analysis demonstrates that the firm can front a higher long-term growth potential through aggressive expansion of its food stuffs and toiletries department, especially in new markets.[Need an essay writing service? Find help here.]
To navigate the prevailing critical economic storms in the retail industry, Walmart must focus more on investing on consumables, which have higher and rapid market returns to drastically scale up its growth potentials. Wal-Mart’s approach to these projections must aim at addressing the concerns raised in the SWOT analysis to capture the aspirations of the consumers and deal its competitors a blow in the retail industry. Despite, the challenges raised by the SWOT analysis, Walmart stands a better chance of realizing its market projections by investing on food stuffs and toiletries department.
Hundekar, S. G., Appannaiah, H. R., Reddy, P. N., & Ramanath, H. R. (2010). Principles of marketing. Mumbai, India: Himalaya Publishing House.
Nassauer, S. (2015). Wal-Mart surprises market with dim outlook. The Wall Street Journal.
Panmore Institute. (2016). Walmart SWOT analysis & recommendations. Retrieved from Sherlekar, S. A., & Sherlekar, V. S. (2010). Global marketing management. Mumbai, India: Himalaya Publishing House.
The New York Times. (2016). Wal-Mart Stores Inc.
Wal-Mart Stores Inc. (2016). The Wall Street Journal.
Whalley, A. (2010). Strategic marketing.