Threats and Challenges of Walmart Essay Example | Topics and Well Written Essays - 2500 words

Threats and Challenges of Walmart - Essay suitWhen microphone Duke took over as Chief Executive Officer in 2009, he faced more(prenominal) challenges from the inside and the outside. In 2009, Lee Scott announced his retirement from the company he had reined for years. During Lees stint, he overcame internal and external foes by transforming the company and dragged it into the 21st century from its clannish roots (Kapner, 2009). Under Mike Duke, Wal-Mart has a new strategy of doing business with the public and with its suppliers it wants to sell and deliver environmentally friendly products and mete out the public with the least environmental impact that it could have and do. Moreover, Wal-Mart wants to transport the products from suppliers so that it could cut costs and pull through more for its stores (Burritt, et al., 2010). Vice-president for corporate transfer, Kelly Abney, says that with belittleder costs they would have increased sales. The strategy is to take over transp ortation service from companies that produce the goods Wal-Mart believes it could do it more efficiently while allowing the companies just to produce the goods for them. In this sense, manufacturers would concede Wal-Mart for the transportation through lower wholesale prices. More savings means more sales for Wal-Mart and low prices for the customers. Wal-Mart had done this before and allayd $200 million by packing and scheduling efficiently its fall of trucks (Burritt, et al., 2010). With the new strategy, Wal-Mart can use contractors and its own vehicles in picking up products directly from manufacturers facilities. Wal-Mart can save more time in delivery with this new strategy. The problem in this new strategy is the economies of eggshell that it will create. According to Randy Huffman, a former Wal-Mart executive, the move will have an adverse reaction on other manufacturers, but this will be beneficial on the part of the customers.