Walmart Direction
Wal-Mart Review
Case Review and Recommendations
As we have reviewed and studied the strategy, culture, finances and the challenges and successes at Wal-Mart, there are many strategies we see that the company must undertake to hold its dominate position and drive further growth. Herein, we define our top four. These core strategies include: rebuild and recreate its reputation in the face of recent challenges; continue to show price leadership; improve the customer experience; and drive international growth.
The financial performance of Wal-Mart continues to be strong. It delivered another record year in 2008 as total net sales increased 8.6 percent to $375 billion. Yet, earnings growth rates and same store sales have slowed. And, the company faces a number of challenges to its operating procedures, reputation and growth prospects. Given the company’s stated objectives of “growing operating income faster than sales” and increasing shareholder value, the strategies we recommend will directly affect the company’s ability to overcome present challenges and meet these primary financial objectives.
Reputation and Brand
A key strategic objective, perhaps the most critical for the company going forward, is to rebuild and recreate its reputation. While brand and reputation are closely interlinked, author and business consultant, John Foley, differentiates the two attributes in this manner: “Brand is inside out. Reputation is outside in” (Foley 3).
Wal-Mart’s reputation has waned in the past several years and, according to Foley, “the company’s reputation problems are dragging down its brand and business performance” (Foley). This conclusion seems to be shared by a number of analysts. Further validation can be found in a recent report (written in May 2007) by the company’s former advertising agency, GSD&M. This report plainly states “Wal-Mart’s #1 overall business...
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