s such as an extreme emphasis on information technology have explained this incongruity between Wal*Mart’s average and the industry’s. However, shareholders’ and analysts’ concerns for the future are justified because of where Wal*Mart and its competitors are in the product/lifestyle curve. Kmart and Target are in the growth/maturity phase, and just as Wal*Mart copied industry leaders during this phase, so too are these companies. Whether it’s owning their own distribution centers or investing in electronic scanning of UPC at the point of sale, Kmart and Target are catching up quickly. Unfortunately, Wal*Mart is in the decline phase of its life and this becomes the justification for concern over Wal*Mart’s continuing growth and dominance.Recommendations:1)Continue pumping more resources than their competitors into superior information technology without allowing their competition to catch up.2)Expand internationally, but remain consistent with their strategies such as putting stores in rural areas.3)Do not change corporate culture. This includes a conscious decision to stay out of major cities, and the choice to expand through acquisitions only when they are compatible with corporate strategy.Justifications: Though Wal*Mart no longer has larger companies to look to for recommendations; they have proven practices that have worked in the past. For example, the continuing reliance on information technology is essential to maintain market share and earnings potential. Continuing to focus on communication between their suppliers and individual stores as well as between headquarters and stores is a must. Yet they must improve upon their existing devices they have at their disposal. With Kmart and Target nipping at the heals of Wal*Mart in so many ways, the advantage Wal*Mart must exploit is the head start they have in the organization and implementation of these various information technologies. ...
