Wal-Mart's Weaknesses and the Challenges Faced on International Expansion

Wal-Mart Case Study
Author’s Name
Institutional Affiliation
Course Code and Name
Professor’s Name
Date
Wal-Mart Case Study
Answer 1
For sure, it can be easy to become enamored with a company, such as Wal-Mart, when it has enjoyed so much success over the years. However, the most significant thing is not the success a firm had in the past, but what it does to continue being successful in the future. Since Sam Walton and James Walton started the company in 1962, it has continually grown and expanded to different parts of the world. For instance, with only 18 stores, Wal-Mart reached sales of about $44 million in 1970 when the firm went public. In 1980, Wal-Mart had 276 stores and had an annual sales of $1 billion (“Real-Time Case 29: Wal-Mart,” n.d.). Sam Walton significantly contributed to the success of the company due to his charismatic leadership style, high esteem for the firm’s workers, and emphasis on customer service. However, Wal-Mart has various weaknesses, namely increased lawsuits from labor unions, pressure from environmental groups, low employee morale, a lack of emphasis on the services provided to its customers, a negative corporate image, and tarnished brand name. As a result, these things make Wal-Mart no longer enamored with its success.
Answer 2
Specifically, it cannot be said that Wal-Mart’s new neighborhood format facilitates the cost-cutting emphasis that was partially responsible for the success of its traditional stores. Although Wal-Mart opened stores in small and mid-sized towns to avoid competition, the company no longer cut costs using the same strategy. Currently, there exist numerous stores in these towns and the only thing keeping Wal-Mart to retain its competitive advantage is product innovation and creativity (Rice, Ostrander, & Tiwari, 2016). For instance, providing groceries make the company a one-stop-shop, which attracts many customers since they get low-cost products without moving from on...