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Walmart Company’s Risks and Threats Case Study

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Updated: Aug 5th, 2021

Sustained performance and threat handling

To begin with, WM needs to diversify its market while ensuring that thorough pre-feasibility as well as, feasibility studies are carried out to ensure significant profitability. The two studies should majorly be concerned with ethical issues in the new markets. It is imperative noting that strategies employed in one given region might not be effective and efficient in the other region of the globe.

As such, the mentioned thorough studies should target to bring out the issues that need to be addressed in the other regions outside the United States where it is evident that they barely perform well. The best way would be to identify itself with the core values of such nations, just like it did in the US. Also, WM needs to keep on improving their relationship with consumers and acting swiftly to all sorts of issues raised. By so doing, WM will indeed remain relevant and hence profitable.

Inasmuch as they still preserve the founder’s values, they need to incorporate newer technologies that will enhance their interaction with the outside world, especially their esteemed consumers. Furthermore, WM must ensure that a purchasing power and a discount should be integrated in such a manner as to offer affordable products to their consumers. Vital still, differentiation must be embraced so as to have all consumer needs met.

Above it all, it is crucial to note that there is an individual effort behind every thriving business. Recognizing such individual efforts and ensuring those responsible are appropriately appraised and motivated will indeed establish a basis for continued innovation as well as a sense of belonging. The aspect is very important in business corporations as every individual owns up all activities of the firm, especially those under them. Such culture will be key for continued profitability of WM.

Threats faced

Foremost, WM struggles to establish itself outside the US due to differences in consumer preferences and habits, political and regulatory environment, competitive scenario, and infrastructure. Due to increased regulatory toughness, MW has been forced to attempt dubious means such as bribery to establish itself which, unfortunately for them, were exposed as in the Mexico case. This calls for specialized strategies different from what they are used to so as to break through this quagmire. This forms the key threat of overseas expansion.

The issue of market saturation, especially in the US, greatly affects WM. This means that the firm has to take its businesses in newer regions that are associated with issues aforementioned. This forms a major risk of maturity and growth.

WM has been targeted by some firms concerning various issues of its increased size operations. Such groups as labor unions seeking to unionize its employees, environmentalists, small-business representatives, women’s and children’s rights advocates and political legislatures have all pinpointed opportunities in WM which they want to take advantage of. In response, WM has ended up employing senior officers in some of these posts (such as environmental issues), a move to increase its wage bill.

Moreover, there are competitors who specialize in specific areas in which WM chose to diversify instead. They specialize in such areas hence challenging WM and forcing it to stretch its innovation approaches. For instance, some simply specialize in service delivery (Lowe’s, Best Buy) while others in style (T. J. Maxx). This means that WM has to as well up their game in such specific areas if they were to compete favorably.

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IvyPanda. 2021. "Walmart Company's Risks and Threats." August 5, 2021. https://ivypanda.com/essays/walmart-companys-risks-and-threats/.

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IvyPanda. (2021) 'Walmart Company's Risks and Threats'. 5 August.

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