Wal-Mart: The Challenges of Dominance
Introduction
Quite fascinating is the intense global competition thrives to sink in into human consciousness and to business organizations around the globe. Such pervasive phenomenon cannot be adequately explain in a single field of interest, that even scholars and theorists of management and business cannot fathom the inner effects and drive of globalization. Empirical process of measuring such globalization effects only provides promising ideas but only at the surface level.
In this case, with the proliferation of many business stepping out in its own territory and venture to foreign parameters, major issues are need to be addressed and studied well. Such issues like multicultural perspective in organization are imperative in business growth. Nevertheless, what makes any business effective in the global market is its presence and awareness on the global issues concerning the process of how to deal with organizational structure that is not restrictive to certain culture or value system.
Dominance is omnipresent in any organization, or even in the consciousness of individual being. Such a case, each organization wanting to occupy larger-scale in global market strives to maintain the force of dominance. Dominant business entities inhabit a wide range of power and influence not only on its field of interest, business in this sense, but to other fields like politics and culture. This may have a negative effect in competition with other global business entities, but presumably each has it own interest for dominancy.
One global business entity which shows the interest for dominance and power is the Wal-Mart. Here, let us present some important reasons why Wal-Mart is dominant and trying to regain such dominance in the global perspective.
Wal-Mart Business
As a retailer business entity which founded on the philosophy of excellence, respect, customer service, and lowest price products, Wal-Mart rapidly developed and grew into a larger-scale business. With these philosophy and basic beliefs of the founder, Wal-Mart easily dominates the retail industry in the United States, having established hundred stores in different states and with high revenues and profits. The “lowest price” scheme which believed to be the secret of Wal-Mart’s success was recognized by international business sectors, however, difficulties arises in various ways.
Wal-Mart great concern is the sustainability of its dominance in the global field and the formula of success and resource allocation strategy may not effectively provide the same dominance compared before. However, trying to identifying core problems and solutions, Wal-Mart business as it goes global learned from the very experience in interaction with various locales.
There are certain influences which decreases the business development and productivity level. The formula of success, low price, zealous inventory control and large array of merchandise was insufficient to the prevalent problem of Wal-Mart. Even though, the emphasis on unique belief which each store should reflect the values of its customers and support the vision they hold for their community, this again became ineffective in the global scenario.
Underlining Reasons
There are explicit reasons behind the weakness of Wal-Mart in the global village:
First, cultural diversity is fundamental in the global business. Organization must be aware of the fact that diversity and differences should not be considered as liabilities rather an asset in which individuals could benefit and shared. Different cultures have different ways of dealing problems and solutions, hence, important in organizational structure and management.
Second, Business culture is vital to the stakes of organization. In the global context business culture should vary according to the locality where it is located. Thereby, imposition of certain business culture in a locality which has its own culture can cause friction and eventually create fatal injury with the business objectives and goals.
Third, Global trends should be constantly examine since rapid changes occurred in an unpredictable state it may have cause also to global trends. Hence, Wal-Mart should have considered the global trends wherein it situated. Its problem with other countries like Germany, Korea, China, and Japan was caused of ignorance and unaware of such factor.
Fourth, financial regulations and imposition of certain cultural consciousness brought Wal-Mart problems with other countries like China, Germany, Korea, and Japan. It should consider that each has own regulations and must diplomatically adapt its regulation in order to form a harmonious business.
Credit:ivythesis.typepad.com
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