One of the main issues Walmart is grappling with is customer focus. Or maybe can it be put as limited interest on the identity of its customers. In the formulation of the strategy of a big company, one of the critical aspects to be considered is real knowledge of the consumers of the company’s products. Otherwise, the plan will be created to serve futility. Initially, Walmart was not established to help online clients; it is just an opportunity that presented itself in the early 21st century. Walmart has concentrated more on only offering products to its ‘potential clients who are not well defined. The company operates a range of stores all over the world and specifically in America. The vast majority of the US citizens live a third-an-hour walk to a Walmart outlet. This business owns over 5000 locations of retail business, not less than 140 million clients, and above 2 million workers. With the above statistics in mind, it is clear that almost every American bought a product in Walmart. Nevertheless, does the company keep a record of the most sold product? Certainly No! This means that there is no clear trail or trajectory of what the company wants to achieve in a couple of upcoming years. Walmart has not capitalized on understanding the interests of its customers. No wonder, it is facing stiff competition from its rivals like Amazon. There is an apparent distinction between Amazon and Walmart even though it is ‘weathered’ due to an increasing number of online consumers which has made the latter to factor other products in its catalog to beef up its sales. Initially, it dealt with books for Walmart, an opportunity presented itself, and the management focused on outcompeting Amazon rather than deciding on specific products channeled to particular customers to enhance its revenues.
Additionally, another issue faced by Walmart concerns human capital and human relations. The resistance to union activity is a clear detriment to its strategic plans. The company is too big to have failed to shut down any imminent employee protests regardless of their source. Also, the company makes huge profits and hence should not be paying their employees unfavorably. Majority of the companies that do not perform well, in the long run, are the ones that do not factor a credible employee focus in their strategy. Moreover, demonstrations by workers show an ailing company and hence, wards off potential investors against financing the business.
Recommendations
First, it is very imperative for the company to consider having their employees registered in a trade union.
Justification
This is essential in ensuring that any grievances with their employer are amicably resolved. Again this boosts their morale to work towards fulfilling the company’s strategic plan unreservedly.
The Best Option
Walmart needs to dissect its strategic plan to factor in customer focus effectively. In this way, it will not grapple with market and profitability-escalation inconsistencies which arise from neck-break competition. This move will give the company a direction on the exact needs of the customer. This will be the best option to deal with the main issues affecting Walmart since if the company establishes that it has reasonable prospects of offering the best services to their customers, it has to streamline its processes and procedures including registering the employees with trade unions, paying them fairly, and listening to them to counter any imminent protests. In this way, the profitability index will never be skewed but always escalating. A leopard will never change its sports; if the workers are unsatisfied, the customers’ interests will never be sufficed and fulfilled. The opposite is true.
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