Today, More Than Ever, The Ceo Of Wal-Mart Has To Undertake

1177 WordsMar 4, 20175 Pages
Today, more than ever, the CEO of Wal-Mart has to undertake new products, organizational growth, the increase of competition, and a changing workforce due to technological developments. In response, the CEO must place Wal-Mart in a position to be responsive to changes. Part of putting Wal- Mart in the right place for change is dependent on the CEO ability to take advantages of the strategies recommended. For instance, Wal-Mart must exploit innovation and use technology to increase sales, also to build stronger relationships with customers. This paper will evaluate whether Wal-Mart is maturing or declining in the retail industry on its evolution history. In addition to using Porter 's National Diamond and Boston Consulting Group to assess…show more content…
One of the most difficult strategic decisions Wal-Mart CEO face is deciding between vertical integration and outsourcing. While Walmart has achieved success in the retail industry, Porter 's Diamond Theory reveals that the company must adapt to today 's consumers to ensure long-term survival. Key factors or determinants that contribute to the success of Wal-Mart include: • Factors of Production: Basic factors such as communicate, skilled personnel and natural resources needed for Wal-Mart to conduct business daily. • Demand Conditions: The request for products. "According to Porter, home demand is determined by three major characteristics: their mixture (the mix of customers ' needs and wants), their scope and growth rate, and the mechanisms that transmit domestic preferences to foreign markets" (http://www.themanager.org/2015/01/porters-diamond-national-advantage/). • Related and Supporting Industries: Success in the retail industry may lead to advantages for Wal-Mart in the grocery industry. • Organizational Strategy, Structure, and Rivalry: Strategies and business structure help manage Wal-Mart operation efficiently, while competition helps create innovative ideas. "As new products are introduced into the world market, there is increasing competitive pressure to save money by developing one product for everyone. Therefore, the company that can establish its standard as
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