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Wal-Mart 1. Evaluate Wal-Mart’s expansion activities (recent & future) Wal-Mart has experienced unprecedented growth in the US through diversification and expansion. However, in an effort to maintain such a high growth rate, the company is forced to look beyond the saturated markets within the US. Wal-Mart’s domestic expansion activities have been a long running fight store by store. Arguments against the retail giant include operating as a non-union grocer, paying lower than average wages, aggressively eliminating competition (thus violating antitrust laws), withholding benefits to workers of less than two years, and creating environmental and logistical concerns due to traffic and noise. Although Wal-Mart has experienced domestic growth, the company has seen a declining growth rate over recent years. The company has aggressively fought these accusations primarily by utilizing strategic alliances, such as other corporate giants like McDonalds, who benefit from Wal-Mart’s expansion. Promising an average of 250 jobs has gained public support that diminishes the impacts of those in opposition to Wal-Mart’s entry into a community. However, critics claim that Wal-Mart, “Changes stores as frequently as you and I change shoes” by saturating an area with stores, driving out the competition, and then thinning out stores by selling off under producing ones. This type of expansion is believed by Wal-Mart to have gained the market share that they now recognize. Most properties are leased, rather than owned. The cost of this expansion and collapse efforts is high. Wal-Mart should consider implementing strategies that give a more accurate estimate for success rate. This will allow for the purchase of land that can later be sold at a profit if necessary. Many contradictions seemingly plague Wal-Mart’s international expansion efforts.
Approximate Word count = 1082
Approximate Pages = 4.3
(250 words per page double spaced)
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