Wal-Mart Case Study

Wal-MartCase Study

Wal-MartCase Study

  1. What is Walmart currently doing to eradicate some of the negative images and feelings that some people have toward this megalithic giant in order to become a more sustainable company?

Tocounter most of the negative perceptions that people have towards it,Wal-Mart has begun taking part in corporate social responsibilities.Through these, the management aims to help the company rebuild itsstatus. Additionally, the firm participates in complex andmultifaceted dealings with various stakeholders from both within andoutside the organization. Of late, environmentalist groups,grassroots organization, labor unions, religious entities, andcommunity members have begun to commend Wal-Mart for its concern forthe community and the general industry. The company has established acommunity outreach platform that centers on ways of improvingcustomer contentment. It now offers scholarship programs and involvesitself with the local municipal activities. The management bestowsmuch focus on the young population and environmental affairs withinthe surrounding communities because. They consider the communities asthe direct market for their goods. On the whole, these practices havehelped Wal-Mart to shape its corporate presence and develop theperception that the community and customers have towards it (Hwang&amp Park, 2015).The firm’s corporate strategy includes selling branded merchandisesthat are of relatively higher quality at fairly low prices.

  1. What are some the high costs of low prices that contributed to some of Walmart’s problem? What is Walmart now doing to form better relationships with its stakeholders?

Lately,Wal-Mart has been facing problems due to its corporate policy ofretailing high-quality products at a low price. The stakeholdersconsider this strategy as unessential because it cuts the firm’sproceeds that would be earned from selling the merchandises at themarket value. They hold the notion that fair competition is healthyfor any venture. However, to recover its relationship with thestakeholders, Wal-Mart lowers the company’s costs by utilizingtechnology as well as innovative warehousing services to keep theunsold goods. The other strategy is that the business discussescontracts before acquiring merchandise from producers and othersuppliers. Therefore, it has significantly reduced the unnecessarycosts suffered through engaging the service of middlemen. Throughthese practices, Wal-Mart has begun to experience tremendous growthand it now enjoys a client base of loyal consumers in spite of thedifficulties it faced in the past (Hwang&amp Park, 2015).The achievement is credited to Wal-Mart’s ability to develop anefficient communication channel as well as its capacity to deal withmatters regarding its image and reputation.

  1. Does Walmart create conditions that push out the smaller stores, or does Walmart help contribute to healthy competition?

Wal-Martactivities may be seen as having tremendous impacts on the smallerstores within the market where it operates. However, the businessonly offers high-quality goods for customers at lower costs byselling larger volumes and accepting even the lowest possiblemargins. It has maintained its competitive edge over rivals includingK-Mart and Sears by lowering overhead costs and therefore, vends itshigh-quality products at lower prices. Such circumstances are whattend to push smaller ventures out of the market. However, it isbecause of their poor strategies that the presence of Wal-Martbecomes detrimental to them. They are the businesses that fail toenjoy the economies of scale and cannot retail their goods at lowerprices. In this view, the smaller businesses only go out of themarket because they seem too expensive for consumers. At the sametime, Wal-Mart offers superior products, has more alternatives, andis low priced. These are the features that people want. Moreimportantly, while tastes change with better technologies, thesmaller stores disregard the new events in the market. This is whereWal-Mart takes advantage and begins conducting its operations throughnew ways (Hwang&amp Park, 2015).Wal-Mart always develops as new types of machinery emerge.

Reference

Hwang,M., &amp Park, S. (2015). The Impact of Walmart SupercenterConversion on Consumer Shopping Behavior.&nbspManagementScience,&nbsp62(3),817-828.