Opportunity for Expansion - the Case of Wal-Mart Essay

Opportunity for Expansion - the Case of Wal-Mart - Essay ExampleThe expansion of a sloshed in the international market is often considered as the most effective method for change magnitude organizational competitiveness and ensuring a long term growth. In practice, this strategy can be risky, especially if it is not carefully planned. The level at which opportunities for expansion need to be used by organizations for improve their market position is reviewed in this paper. Reference is made to a specific organization, Wal-Mart, a major contest in the global retail industry. Currently the firm operates in about 27 countries (Wal-Mart 2012, corporate website). patronage its success, the firm tries to secure its market position through continuous expansion in US market, where the firm is based, the chances for further growth seems to be limited. The expansion in the international market seems to be the firms only chance for achieving a long term growth. 2. Expansion in new markets Wal-Mart 2.1 Background Wal-Mart is a leading firm in the international retail market. The firms stores are dispersed globally, qualification Wal-Mart one of the most powerful competitors in its industry. The firm was first established in 1962, in the States (Wal-Mart 2012, corporate website). ... In 2010, the firm planned to increase their international stores, approximately by 600 stores worldwide (Tice 2010). For the US market, the establishment of just 160 new stores was considered as sufficient for responding to customers needs (Tice 2010). In 2012, the firm plans to dress a high amount of money, about $750 million (CBC News 2012), for expanding its operations in Canada. The above enthronization involves in the renovation and expansion of the firms existing stores creating 14,000 new jobs across Canada (CBC News 2012). It should be noted that in 2011, the firm had developed a major plan of expansion in the US market, adding hundreds of small stores across US under the name Wal-Mart Express (Bustillo 2011). This is an effort for expansion in the indispensable market, as combined with the expansion internationally, which is considered as quite important for standardizing the firms performance in USA. The opportunities of expansion given to Wal-Mart, as described above, are analyzed below reference is made to allow theory but also to the practical implications of the particular initiatives. Also, the potential effects of these strategies on the organizations performance are discussed, as they can be estimated by using the figures presented in the firms financial reports for the last 5 years, a period during which the firms efforts for expanding internationally have depart intensive. 2.2 Evaluation of the firms current expansion strategies 2.2.1 Organizational expansion in theory The decisiveness of organizations to expand their activities internationally can be based on different criteria. According to the monopolistic expediency theory (Luo 1999, p .27), organizations may decide to expand in the global