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The Wal-Mart’s story reminds of the Cinderella’s fairy tale, only now the she has gained extra weight and does not know how to manage the castle anymore.Still, the she is a Queen now and nobody dares to question that.Another step to improve performance is the well-thought product policy in terms of the customer’s demand, not solely basing on the low-price offer.
Wal-Mart is still successful, but it has begun to lose the market share because low-pricing is no longer enough.
The customer that is able to pay more will look for more sophisticated, unique products, for better services and for more comfort along the shopping-time.
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Smaller retail businesses differentiate in a corresponding matter.
And, what is more threatening, they begin to manage to reduce the prices for Wal-Mart’s strategy to look less impressive than years ago.
Still, the success in Canada, Mexico and Britain shows there are significant business opportunities outside the U.
S., and they will provide the continuing growth rate the stockholders are so striving for.
The political environment also poses a threat to the success of the Wal-Mart businesses. And that automatically means the inability to keep the prices down (while the competitors somehow continue to manage and press for Wal-Mart’s existing level of prices).
The competition itself is not too threatening to the Wal-Mart business, as long as it concentrates on the customers needs and continues to manage the best price offer and a worthy level of services.