Wal-Mart Business Analysis Wal-Mart sells merchandise and the after sale services required. The organization has established a strong market sphere through customer satisfying services. The strong market sphere has mainly been achieved through good leadership (Henry &. Mayle, 81). Customer satisfaction in any business wins loyalty of customers, which is crucial for economic growth of the organization.
Internal environmental analysis
The organization carefully identifies where to locate its warehouses in new market ventures. Establishment of shops earlier in new towns than its competitors has been crucial in securing more market by lack of competition.
The company also improves customer loyalty through frequent discounts and promotions. After sales services has given the organization an upper hand through customer awareness. Clear reinforcement and tradeoffs service provision offers a competitive market ground.
External environment analysis
Significant influence is by the company’s founder who advocated cost cutting (Henry &. Mayle, 82). Cost cutting has been vital in securing a large market compared to its competitors. Warehouse location selection is important in determining customer growth rate (Henry &. Mayle, 72) and hence the organization’s trade flow. The company mainly has established its warehouses in the rural areas, which reduces expenses compared to its competitors in urban areas and hence more financial gains.
Areas of Improvement
The major drawback in the organization is in the application of the shareholders model regarding its workers. Low workers’ pay has made them compromise with service delivery compared to its competitors.
The organization does not have an advertising power to improve the top of mind customer awareness. Advertising the company also plays role in improving market penetration by the organization.
The company has extensive market empire achieved by the exploitation of advantages from cost differentiation, use of better technology and excellent location choices for warehouses. Maintenance of market domination by the organization is vital. Keeping ahead of the competitors will be crucial for better growth rate of the company.
Henry, Jane and Mayle David. Managing Innovation and Change. London: SAGE, 2002. Print.