Walmart Vs Target Essay

Walmart Vs Target Essay-45
In order to fully comprehend these forces, we need to analyze the situation using certain tools.The most fitting tool to analyze the potential growth of Wal-Mart would be the SWOT Analysis tool, since it would give us both an external as well as an internal view of the companys' status.

In order to fully comprehend these forces, we need to analyze the situation using certain tools.The most fitting tool to analyze the potential growth of Wal-Mart would be the SWOT Analysis tool, since it would give us both an external as well as an internal view of the companys' status.

* The trends of stores that focus on one special areas of expertise are now threatening Wal-Mart (such as Best Buy for example).

* Political pressure and foreign laws can affect Wal-Marts operations in other countries.

But the question is, what are the limits to Wal-Marts growth?

The domestic retail market in the United States s overcrowded and extremely saturated, even Wal-Mart would have to seek new means of expansion, so the natural solution for them would be to seek new markets and opportunities outside the borders of the organizations' home country.

* The company makes good use of technology, especially in inventory management.

* The company has a huge lead ahead of its competition. * They face criticism for reliance on temporary and part-time workers as well as accusation in regards to violations of the child labor laws.Wal-Marts sales were more than twice that of the combined sales of its two closest rivals (Home Depot 65 Billion & Target 50 Billion).Wal-Mart has used its rapid expansion and efficiency as a edge over the other retailers, but can this growth spurt that has lasted over half a century continue much further?(Examine exhibit 2, Wal-Mart case study, Yoffie 2005) Wal-Mart has achieved 260 Billion Dollars in sales in 2005, making the company the largest corporation in the world considering sales, and not to mention being the largest retail corporation in the world.Wal-Mart faces stiff competition in both its domestic and international markets; however, Wal-Mart has a huge lead over its competitors.Corporations and especially ones like Wal-Mart need to maintain a level of growth in order to stay profitable as well as functional, but can they keep matching the extraordinary levels they achieved in the past, and can the people in todays' economy tolerate this growth?There are several elements, both external as well as internal, that would affect the answer of those questions.* Being the largest company in the world with 260 Billion in sales.* The company has a good reputation in the United States.It is difficult for Wal-Mart to maintain the level of growth they had, but as the SWOT Analysis showed, the company has what it takes to do it.The companys' strengths assists them in fully utilizing the opportunities that are available, while at the same time, the company has to be cautious in addressing all of its problems, weaknesses, and threats in order to maintain its astonishing growth.

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