Recommendations of Wal-Mart Stores Inc: Success Strategies In Recessionary Environment Case Help

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Recommendations of Wal-Mart Stores Inc: Success Strategies In Recessionary Environment Case Study Analysis

On the basis of above internal and external analysis of the company together with the evaluation of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would allow the company to expand in global markets without any decrease in its regional earnings and any deterioration of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand uniqueness. However, it might also consider alternative 2 that could enable the company to access the marketplaces without any potential investment. Although, the company could pursue alternative 1 which would allow the business to concentrate on potential international markets instead of the local markets however as the business is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decline in business's profits. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Wal-Mart Stores Inc: Success Strategies In Recessionary Environment Case Analysis Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the worldwide existence of the company. Nevertheless, the closing of domestic stores might extremely affect the incomes of the company as above 90% of its stores lie domestically and closing those stores would eventually reduce the earnings of the firm. Moreover, the company has a long term market position in United States which can not be created soon in the brand-new markets. The option would help the business to expand in international markets together with the removal of problems raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in earnings from worldwide markets.
• Elimination of issues related to variety.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Wal-Mart Stores Inc: Success Strategies In Recessionary Environment Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose a serious danger to the market share of business. In this situation the company might consider introducing Click and Recommendations of Wal-Mart Stores Inc: Success Strategies In Recessionary Environment Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the excellent store experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company could think about, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the business. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of new worldwide markets.
• Increase in profits from worldwide markets.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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