Case Study of Walmart's Problems

Document Type:Speech

Subject Area:Business

Document 1

From 1965 to 2000, Walmart has doubled its sales in the American Market. In 2003 and 2004 Walmart was ranked the fifth most admired organization in America by Fortune magazine. In 2002, Walmart ventured into the Japanese market through attaining a small stake in Japanese Walmart subsidiary Seiyu Group. It has 11,277 clubs and stores in 27 nations that operate under various names. Walmart is considered the largest organization with respect to revenue as well as the largest employer in the private sector with about 2. However, understaffing had been related to understocking (Rosenblum). Lack of enough staff ion Walmart staff lowers the rate at which the shelves are restocked. Customers have made complaints that they have to wait for the longer duration to get what they want or an attendant.

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Therefore, the issue of understocking has mainly be caused by lack of enough employees who will enhance speedy restocking. Analayst5s have also shown that apart from a failed store execution due to understaffing, weak technology is also a major cause of this problem. The organization does not set its prices based on the price of its competitors. This has led to setting prizes that the company thinks are low and profitable without making any comparison. Notably, the factor that there Walmart prices are higher than its competitors could have an adverse impact on Walmart’s business success (Luiz). For years, Walmart has won their customers due to low prices. However, having high prices will make consumers move to other companies offering similar goods at a lower rate.

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