Although Wal-Mart is a global company, it operates in few countries. This has restricted the the company to meeting needs of few people in the few counties rather than worldwide. The fact that Wal-Mark provides products from various sectors in same roof hinders its ability to concentrate on focused customers. Focused customers usually makes considerable purchases which have higher profit to the company than the profit got from unfocused customers.
This means generalization limits focused customers from maximum participation. Despite the fact that the company is large, it is involved in individual control. This is likely to weaken of of its areas a4s the control span is huge. Opportunities The fact that Wal-Mart is large in size, and deals with a wide range of products and services creates opportunities of taking over, forming alliances and merging with companies in various industries and states.
The company has the opportunity to diverse since its operations are based on few countries. The new location offer the company opportunity to develop in market, and to continue being large in size. Threats Wal-mart is the target of many competitors. Every company want to top in production and sales. Since the company is based in many countries with different government and political systems, it is in the threat of political issues and problems. The company encounters different political systems which present different problems.
The company is expected to adopted to the countries culture and political system which in most cases slows down the progress of the company, or even blocks the operations completely (Bianco et al. 2007, pp. 46) Conclusion Wal-Mart can continue growing if it can use the strengths to utilize the opportunities, strengthen weaknesses, and establish strategies to avoid threats (Anonymous, 2004, pp. 74). The company can develop units in many countries either through alliances, merging, or taking advantages of smaller companies.
Since it is large to control itself, it should not use self control, rather get effective measures. By strengthening the weaknesses and appropriate utilization of opportunities Wal-Mart can avoid and overcome many threats.
Anonymous. (Apr 17, 2004). Special Report: How big can it grow? Wal-Mart Economist London: 371. 8371, 74. Bianco, A. , Der, H. , Young, L. , & Gogoi, P. (April 30, 2007). Wal-Marts midlife crisis; Declining growth and increasing competition. Business Week. 4032, 46. Matthew, Z. , and Graham, M. (2006). Wal-Mart Nation. Wal-Mart World: Routledge.