Walmart Essay Example | Topics and Well Written Essays - 1250 words

Walmart - Essay Example It comes under strategic portfolio management. It has the following criteria: Score from the EFE Matrix (score is plotted on y-axis) Score from the IFE Matrix (score is plotted on x-axis) The IE Matrix is divided into three segments namely Grow and Build (High), Hold and Maintain (Medium) and Harvest or Divest (Low). Analysis of Wal-Mart using IE matrix: The Internal factor evaluation score of Wal-Mart is 2.80 and the External factor evaluation score is 3.86. According to these scores, Wal-Mart fits into the category of Grow and Build. The strategies suitable for Wal-Mart are discussed below: Market Penetration: This strategy can be used when a company wants to increase its market share with the help of its current products and services through greater efforts of marketing. This is extremely appropriate for Wal-Mart and can give a competitive edge because of the bankruptcy of K- mart. Wal-Mart should increase its promotional campaigns to capture the attention of its target market and retain the customers of K-mart as well. K-mart is closing hundreds of stores and this is an opportunity for Wal-Mart to control the market. The economies of scale against its rival also give the power to influence the market. The EDLP and rollback campaigns can be integrated in such markets where their share is less and will enable the employees to grow and promote in higher positions with the addition of more products and increased market share. Wal-Mart already enjoys a dominant position and requires a little effort to reach out to a range of customers. Wal-Mart can contact to local television stations and other advertising means to increase its customer base and positive image. The immediate results of this strategy includes increased market share, increased sales and increased customer recognition. This will also increase the competition because competitors will also respond to this strategy. Market Development: Wal-Mart can also enter into new markets by simple introducing its products and services in new geographic areas. This strategy also works with the core values of Wal-Mart. This strategy will provide many potential areas for growth both in local and international market. This is because Wal-Mart holds a strong position in the industry and has the needed capital and human resource to diffuse into the untapped markets. Thus, in order to maintain and expand their reach in all facets of the business Wal-Mart should continue to grow its business in different areas of the world. This will also provide quality of life in those areas where development is required. The costs for the implementation of this strategy are considerably high because it will involve the construction of new buildings and organization of new distribution networks. This is a very important strategy for Wal-Mart because they are currently using this strategy. The main advantage for Wal-Mart is its superior pricing ability which forces out the other local shops and stores. This will s urely increase the level of customer satisfaction as well as the increased capital investment. Product Development: This strategy can be used to increase the sales and serve to a diverse range of customers by modifying and improving the quality of existing products or services. This will provide the unique opportunity to compete with higher market sharing places in the other divisions. It is known that Wal-Mart operates in other divisions under its name. Through this strategy,