Strategic Management of Wal-Mart Stores Essay Example | Topics and Well Written Essays - 1000 words

Strategic Management of Wal-Mart Stores - Essay Example It is to mention that the company that has been chosen for the study is Wal-Mart. The purpose of the study is to recognize the Wal-Mart’s strategy and further create an argument to verify if the strategy that has been adopted by the company is appropriate or not. About Wal-Mart Wal-Mart Stores, Inc is a company that is in America and belongs to the category of public corporation. It operates numerous chains of the discount department based stores and also warehouse stores. The company outperformed in the year 2010 and was successful at becoming the biggest corporation in the world in terms of revenue as per the Forbes Global 2000 for that particular year. It was incorporated in the year 1969. It is worthy of stating that because of the strategic actions taken by the company, it has been successful at expanding its operations in 15 countries with 8500 stores and 55 numerous names (Scribd, 2011). Wal-Mart’s Low Cost Strategy The Wal-Mart’s stores are present in alm ost every ‘nook and corner’ of the world. The obvious question that arises in the mind relates to the reason behind the successful operation of the company. The reason behind is the low prices that the company maintains for the purpose of attracting the customers. ... The main objective of the store is to maintain low prices so that the customers are happy with Wal-Mart. However, these corporations don’t take into concern the happiness of the workers in 48 different countries (Bauer, 2005). It can be argued that the company’s strategic move towards the maintenance of low price seems to be immoral and immaterial. Although by maintaining low prices, it can attract its customers and keep them happy and satisfied but it seems to be negligible towards the society. Wal-Mart Expansion Strategy It is apparent that the company has been successful at expanding its operation in various countries of the world for the purpose of rejuvenating the sales growth. It tried to expand its operation in Germany, however it was not successful at maintaining long term survival in that particular country where Wal-Mart tried to make the store profitable for many years. The reason behind the malfunction had been the company’s inconsideration towards th e German competitors, shoppers as well as the rules, cultural differences and labor unions whose strength impeded the success of the company in Germany. The same strategy has been quite successful in the United States. At this instance, it is important to assess the cause behind the disappointment of the company’s strategy of expansion in Germany. It is to be stated that different countries have dissimilar cultures and different perceptions regarding the purchase of a product. The companies need to adopt the strategies accordingly. A particular strategy that helped the organization to outperform its operation in one country may take the business to failure in another country (DePamphilis, 2009). Competition at