Wal-Mart

Opportunities and Threats

Everyone knows Wal-Mart as being the powerhouse of the retail industry. With its immense size and intimidating power, one might think that not much can stand in its way. To a certain extent, this may be true, but Wal-Mart is not completely immune to external factors. At the same time, as big as Wal-Mart is, potential to grow still exists. In its domestic market, Wal-Mart may not have much more room to grow under the banner Wal-Mart, but competing in different market segments or even acquiring different stores may prove capable of increasing year end revenue. In terms of its current network, converting the existing stores to ‘Supercenters’ seems to be the key to increase revenue in its domestic market. Supercenters stock everything a Wal-Mart Discount Store does, and also include a full-service supermarket, including meat and poultry, baked goods, delicatessen, frozen foods, dairy products, garden produce, and fresh seafood. Many Wal-Mart Supercenters also have a garden center, pet shop, pharmacy, Tire & Lube Express, optical center, one-hour photo processing lab, and portrait studio. Converting stores to supercenters would allow Wal-Mart to try erode market share away from supermarkets and department stores. Another viable source of revenue for Wal-Mart would be from its international divisions. Since Wal-Mart has been competing in different countries for much less time than it has in its domestic market, it means that there is still a lot of room to grow with its existing infrastructure in those countries. If positive feedback is acquired, expanding the number of stores would be the next step. Wal-Mart could also attempt to grow internationally by acquiring already very successful retail brands. This could prove useful if they have already failed in that market or have very little understanding of it.

There are some downsides. Despite the fact that supercenters could potentially bring in increased revenue, they also require much...