Walmart is a famous retail store company in America with branches and outlets in different countries. Both internal and external factors are essential for a successful innovation plan for all companies—the most significant international presence is its early expansion to Latin America with hundreds of stores. Over the past years, the company has opened stores in Europe and many other areas worldwide. To better the alignment of its international business, Walmart expanded its operations to Asia and the middle east. Here we will talk about several things that affect the function of Walmart either positively or negatively in its expansion strategy. Such items include; tangible resources, organization culture, brand reputation, and partnership. Walmart has established comprehensive distribution channels by integrating online suppliers and retailers. These substantial resources endow Walmart with strong investment capacity, resilience, and reserves. A stack ranking system dominates the culture of Walmart. As we all know, competition is not a good thing; it brings companies apart.
Wal-Mart’s Global Strategies
As we all know, the process has to change if we need better results. To achieve the implemented goals and objectives of Walmart, the firm had to implement new strategies. Walmart Corporation has been tremendously successful in adopting the best marketing techniques. Walmart focuses on producing good quality and low-cost products for its market (Chen, 2021). The company can meet customer needs through the business strategy by creating various quality products at a reduced price, hence profit. Nowadays, we see that people move with trends—Walmart’s most significant international presence is its early expansion to Latin America with hundreds of stores. Over the past years, the company has opened stores in Europe and many other areas worldwide. To better the alignment of its international business, Walmart expanded its operations to Asia, the middle east, and Africa. The company has thousands of footwear stores in different countries globally. The company faces competition from the other leading sports companies, such as footlocker and dick’s sporting goods company. Modern living people prefer products that are more environmentally friendly. To conform to this consumption trend, Walmart should be more inclined to adopt environmentally friendly raw materials and manufacturing methods.
Walmart has concrete human resource values and policies to help achieve its goals and objectives. Human resource policies create a string of internal and external supplier relationships. Walmart has an organizational culture of maintaining and keeping the stores clean and accessible to customers (Chen, 2021). Business level strategies help the company focus on customer needs by offering delivery services. Social culture can influence an organization’s design in an environment. Walmart can implement the localization strategy to understand the local cultures better and gain market share in different countries in terms of marketing. The process selection in Walmart ensures that customers get their orders right and within the shortest time possible. Early expansion strategy of Walmart
The early expansion strategy involved:
- Engaging in political alliances.
- Selling to the middle class.
- Creating local partnerships in the Latin American market
Walmart has expanded its market coverage by producing its products at the same supply chain level. The company has grown internally and externally through several mergers and acquisitions. Proper management of all its branch outlets must align with the company’s overall corporate strategy and vision.
The independent company operates a series of retail shops and stores with men, kids, ladies’ footlockers, and many other products. Walmart stores have most of their development from different companies such as Nike, a footwear company that is well known for its best products across the world (Holweg, Davies, De Meyer, Lawson & Schmenner, 2018). The most significant international presence of Walmart s its early expansion to Latin America with hundreds of stores. Over the past years, the company has opened stores in Europe and many other areas worldwide. To better the alignment of its international business, Walmart expanded its operations to Asia, the middle east, and Africa. The company has thousands of footwear stores in different countries globally. The company faces competition from the other leading sports companies, such as footlocker and dick’s sporting goods company. These companies have maximum sales in terms of sporting products. The growth process of the Walmart company has not been easy. It has been with increased and reduced growth rates over the years. Most of the company’s revenue is obtained from the many retail outlets in different countries within America. Walmart has less of its income from international businesses. External factors such as cultural influence have affected the company’s overall global sales, leading to a significant decline in sales growth.
Opportunities in the Expansion Strategy
Despite the much competition the company faces, it has increased its annual sales over the last five years. The company has most of the shares in their business market while the rest take the rest of the fewer shares. In this case, Walmart has a substantial competitive advantage over its competitors. The way an organization carries out its daily operations determines its success. Walmart uses a strong operation strategy to keep a good rapport with its customers and suppliers. Like all other organizations, Walmart requires a working and effective operations system (Chen, 2021). A company may expand its market presence into another country without taking total responsibility; to do this, it must enter into an international joint venture partner. Walmart has numerous IJV partners that can work within America to handle half of the work. Walmart follows a selection process to choose which firm they partner with, whether the prospective firm follows high-quality standards. Also, does the company provide services that are superior to their customers? Lastly, Walmart considers whether the prospective firm will follow the strategy outlined to become a market leader. In the retail business, there is direct contact between the seller and the customer. It is through the retail industry that customers can get high-quality and affordable goods and services. The key things to consider for a successful retailing business are price, product, place, and marketing. This task requires you to locate three articles that are related to retail in some way. Strong distribution channels are especially important in internet commerce since they are how items are delivered to consumers. E-commerce is cost-effective since it reduces the need for infrastructure, such as the construction of additional goods shops.Most of the work is done through the internet, where only a few storage locations are required. According to Marshall, companies should create a strong customer relationship through the website and innovative marketing strategies for significant electronic retailing. Successful e-tailing needs to have a robust branding system. The online website for distribution channels should be engaging and customer-friendly. The websites should be easily accessible and updated to meet customers (Hargrave, 2019). Products and services need to stand out from competitors’ offerings and add value to consumers’ lives. There are two main types of e-tailing; business to business and business to consumer. In retailing, a company can sell to another company or even to potential consumers through the internet. E-tailing allows companies to move products faster and rich in an enormous market force. Retailers also need to implement new marketing strategies such as a click and collect process. Click-and-collect not only brings customers in the door, but it has also been shown to boost in-store sales. Offering this service will increase foot traffic and revenue in your business. Stores must offer door-to-door delivery in order to boost retail sales. Consumers are using Google to locate shops and goods now more than ever. Make sure you’re visible anytime they search for anything related to your company. This way, customers can order products online and have them delivered to their doorstep.
Setting up organizations’ fundamentals helps in their growth and success. Since the market dominance of Walmart is within America, an expansion strategy would be recommended. Spreading the Walmart stores and shops to different countries helped increase its market coverage. Over the years, Walmart has had increased local sales over international sales (Yang, 2019). For the company to expand its global sales, more stores have been established in different countries worldwide. In this case, the state of choice in Latin America. Latin America provides a good market for Walmart products. There is an increased interest in branded footwear in Latin America, making it suitable for the products. Walmart is a multinational company that needs to expand its market to viable markets such as Latin America. People in the market prefer local products to other different products. It is, therefore, suitable for Walmart to merge with some of the domestic footwear companies in the region for its expansion. A merger is the most appropriate form of entry into the market. Walmart is much successful by merging with other leading companies, such as Nike and the flight club. The company has been successful in expansion over the years.
Challenges in the Market Region
Most businesses have recently faced the problem of market saturation. This case is because many companies have entered the department store business, and the market is not large enough to cover all the new and existing businesses. The market share is composed of people from different cultures, and therefore, their preferences and teste differ (Chen, 2021). For the people in an organization or institution to work together, the leader should build a good rapport with each one of them. This case is achieved by studying all the individuals and finding a way to find a common culture in the environment. By ensuring all that, communication in the organization is made active. Goals help us be focused. Identifying one’s strengths is essential for a leader. Good leadership comes from a leader who knows their power and utilizes it in the best way possible. Optimizing the strengths help achieve the set goals and objectives in the leadership.
Several political factors impact the operations of many organizations and businesses. When we talk of politics, some elements such as governance come to mind. Walmart is a multinational company that provides its services to many countries in different regions globally (Chen, 2021). Therefore, it is crucial to understand and follow each national government’s policies. Also, the stability of a government directly affects multinational companies’ income, and if there is political instability, it will lead to an increase in expenditure and a decrease in revenue. For example, venturing into the Latin American market was not easy because Walmart failed to filter its search results as required by the foreign government. The way an organization carries out its daily operations determines its success. Walmart uses a strong operation strategy to keep a good rapport with its customers and suppliers. Like all other organizations, Walmart requires a working and effective operations system.