Definition of Main Problem: There brush off be no argument that Wal*Mart has revolutionized the give the axe retailing industry. Furthermore, CEO churl and COO Soderquist have stepped in at the helm of this lodge and continued to take it in the right direction by quadrupling sales and profits from 1987 to 1993. The main problem they without delay face is how to sustain their phenomenal performance, and becoming number iodine has magnified this issue. No long-lived can they just raise into small towns where the only competition is the local merchants shop. No thirster can they copy larger companies like Sears and J.C. Pennys because of their size and scope. The event is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. They are lurking not so softly in the shadows, benefiting from Wal*Marts past choices, successes, and failures. They are there to blow the let the cat out of the bag if Wal*Mart steps outside the lines. Wal*Mart may be growing, but at a rate under 10% for the rootage time in years. Shareholders are concerned, the press is relentless, and many a(prenominal) obstacles lie in their path if they hope to continue the trends surface-to-air missile Walton set so ambitiously in 1962. Analysis: With mavin of their main issues being sustained profitability, Wal*Mart is at a critical time in their life.
They are no longer the hero, a place commonly reserved for competitors striving to be number one, because Wal*Mart is number one. No one can debate how effective they have been in getting here. by their focus on superior technology and low cost leadership, Wal*Mart reigned supreme. They are redefining Porters five forces model in the discount retailing industry, and are in the enviable position of having first movers advantage. Yet this blessing is...
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