The link below takes you the Motely Fool's analysis of Wal-Mart and why they believe Wal-Mart is collapsing. What do you think are the reasons behind Wal-Mart's poor financial data, and why the author thinks Wal-Mart is falling apart?
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He observes that work expands so as to fill the time available for its completion.
Walmart is one of the leading retail stores in the world, recently there has been an outcry that Walmart is tremendously loosing its market share. there are several reasons behind this are some of these are that the company faces high employee turnover that has resulted to it incurring more cost in recruiting new staff. Negative publicity has also resulted into the falling Walmart.
Walmart has often
faced a lot of criticism for its questionable practices such as bribery of senior
authorities and poor work conditions within the organization. This highly
affects the company’s reputation. Increasing competition from Brick and Mortar
and online competitors has also contributed to the failure of Walmart. Various Walmart
potential competitors like Target, Costco, Amazon, Tesco and other huge
companies are trying to eliminate the price differences that Walmart Enjoys.
This pose a lot of challenge to Walmart
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prices affects Walmart’s profit margin as a result it erodes the company’s
competitive advantage. As the commodity prices rises, the cost difference
between retailers drops and competition shifts.
If immediate measures
are not taken, then Walmart is likely to fall from the top position. This is
simply because Amazon, Costco are posing a lot of threat in terms of online
shopping. What shinned yesterday may not shine today. Cost conscious consumers
have gone online and the consumers who have the ability and cash to shop at
brick and mortar are nowadays looking for more than just low prices. Targets
are now focusing on higher ends of the market than Walmart can provide.
Jul 14th, 2015
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