Recommendations of Wal-Marts Cost Leadership Strategy Case Solution

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Recommendations of Wal-Marts Cost Leadership Strategy Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of various options, the company is advised to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its local incomes and any wear and tear of its market position. The company might pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Wal-Marts Cost Leadership Strategy Case Solution Stores

The company has a long term market position in United States which can not be created soon in the new markets. The option would assist the business to broaden in global markets along with the elimination of issues raised in its regional markets related to its variety.

Pros:

• Expedition of brand-new international markets.
• Increase in income from international markets.
• Removal of issues connected to diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the local markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Wal-Marts Cost Leadership Strategy Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture an extreme threat to the market share of business. In this scenario the business could consider introducing Click and Recommendations of Wal-Marts Cost Leadership Strategy Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

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

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

Another choice that the company might think about, is to expand towards the global markets without closing its domestic shops that adds to the major part of revenues of the company. The pros and cons related to Alternative 3 are given below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of brand-new international markets.
• Increase in revenue from global markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



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