As the second largest industry in the United States, the retail industry is credited for over 10% of all the people that are employed in the United States. The industry is estimated to be amassing close to $ 4 trillion per year and over $ 4.2 trillion when food is included and this therefore reveals the huge nature of this industry. In addition, the industry also contributes close to 10% of all the GDP in the United States (Beam, 2013). A majority of the retail stores in the United States are mainly single-stored and this therefore implies that their total sales are less than half of the entire industry. The biggest retailer in the United States is Wal-Mart with a market capitalization of close to $300 billion. It is in-fact classified as one of the top ten largest companies in the United States by revenues according to S&P 500 Index.
In the past two years, there were news that some of the leading retail stores in the United States were closing and this included but was not limited to retail chains such as Wal-Mart, Best Buy, Home Depot and Costco. The closing down of stores was not mainly triggered by the crisis in the retail industry but rather because of the fact that the industry was becoming more competitive and engulfed with fast-moving goods and thereby making some of the retail stores and chains and thereby making it difficult for most of these companies to compete. However, the numbers of retailer chains that have closed down in the past three years are few compared to those that closed down in the past.
In addition, the new retail industry is typified by a market where there is an increasing number of persons that are shopping online either through mobile or through the computer. The fact that people are now able to shop and buy their goods through the internet has eliminated the need for physical retail chains in various locations and thereby triggering the downsizing of the stores. With the increasing number of people that are shopping online, this trend is expected to continue (Beam, 2013). The change in the market trend is also expected to shape the way retail stores stock their products since the online purchases will direct the retail companies on the consumer preferences.
Wal-Mart 3-5 year competitive vision
The first competitive vision for Wal-Mart is to ensure that they increase their presence in the online market. As earlier mentioned in this study, the retail market is shifting from physical stores to online stores and this is largely triggered by the increasing number of people that are purchasing their products online. This therefore means that this trend will continue to increase in the near and distant future and there was therefore a need for Wal-Mart to pursue this angle and thereby increase their online presence.
In addition, Wal-Mart also intends to increase their market presence in Asia and Africa. Wal-Mart has had a tumultuous time in Asian countries and more primarily in China as a result of competition from Chinese companies. The difficulties in China were largely blamed on the low cost nature of the Chinese Market and also the inability for Wal-Mart to deliver their products like many Chinese competitors do. In order for the company to increase their presence in the Asian market and more primarily in China, the company aims to start deliveries across some Asian countries beginning with China, which has one of the largest markets currently in the world. In addition, Wal-Mart also has the vision of growing their presence in some of the emerging countries in Africa that have one of the fastest growing middle-economy and also fast growing economies (Fogel, 2016). Cognizant of the fact that Africa has one of the largest populations in the world and an increasing number of tech-savvy populations, the changing trend towards online shopping will ultimately provide a good market in Africa.
Wal-Mart current and new markets and unique value propositions
Wal-Mart current markets have been mentioned previously in the study while the new markets should include the emerging markets in Asia and Africa. The value proposition of Wal-Mart is comprised largely through leadership and service to the people, innovative thinking and the commitment to the people to improve their lives through saving money. The value of Wal-Mart is mainly created through the improvement of the supply chain management (Hill & Jones, 2007). This is mainly done by moving products from the suppliers to the buyers within a short time. There have however been concerns that the expectations of the consumers are changing rapidly. This has therefore changed their value propositions to an approach that is more enterprise based from a market to segments basis. The value proposition is also based on technology, internet, data and mobile since it recognizes the opportunities that are presented by the emerging market or trends of online shopping. This therefore implies that it constantly looks into the various markets, businesses, services and formats that are needed in the company and it also conducts an analysis on some of the value propositions that are being demanded by the customers. The value proposition of the company is also driven by efficiency and productivity, which consequently drives the profitability of the company. In addition, the value proposition is also driven by a sophisticated system and information technology that is used to track the inventory of their products.
3 new and viable corporate, business, and/or functional strategies for Wal-Mart
One of the corporate strategies that are undertaken by Wal-Mart is the efficient choice of markets. Another corporate strategy is looking for an appropriate mode of entry. The other corporate strategy was to clone the corporate DNA of their business that it has already integrated in the United States market to other countries around the world where it ventures into, with their entry into Canada being one of the main revelations (Beam, 2013). In addition, they also have business and corporate strategies of winning the local battles through either local adaptation or battling the local competitors through various strategies such as the acquisition of the dominant players, launching an offensive attack on the dominant companies and acquisition of the weak players. Some of the business and functional strategies include an investment on the customer services, allowing customers to shop on their terms and improvement of the groceries. The above mentioned strategies have been the forces behind the rapid growth and success of Wal-Mart to become the largest retailer in the world today.
2 organizational structural charts for Wal-Mart
President and C.E.O
Wal-Mart Stores Inc.
President and C.E.O Wal-Mart International
President and C.E.O Wal-Mart US
President and C.E.O, Global e-commerce and Technology
President and C.E.O Sam’s Club
President and C.E.O
Chairman of Board of Directors
CIO COO
CFO CTO
Project Manager
Project coordinator
Business Analysis Manager
Training Manager
Implementation Manager
Engineer Manager
Team Members
Software Development Team
Company Staff
Hardware/Networking Team
Vendor Staff
Testing Team
Conclusion
It is revealed that Wal-Mart is the largest retailer in the world. The rise to stardom of the retail giant has largely been orchestrated by its numerous locations and chains in many countries around the world. Its dominance in the United States market is something to be adored and it has extended its strategies that have orchestrated its prominence in the United States to other parts of the world. There are still some new markets and strategies that Wal-Mart can venture into in order to improve its global presence and cement a place not only as the largest retailer in the United States but also in the world.
References
Beam, H. H. (2013). Strategy formulation for general managers: A practical guide for establishing corporate strategy. New York, NY: Kendall Hunt Pub Co.
Fogel, D. S. (2016). Strategic Sustainability: A Natural Environmental Lens on Organizations and Management. New York, NY: Routledge.
Hill, C., & Jones, G. (2007). Strategic Management: An Integrated Approach. New York, NY: Cengage Learning.