|Hinduism||Movie Songs and Entertainment||Business, Finance, & Economy||General Knowledge||Health & Naturopathy||Vegetarian Recipes|
|YouSigma- the web's most extensive resource for information|
Wal-Mart’s Positioning Strategies
Wal-Mart had faced fairly stagnant stock prices, around $50, for a couple of years and in an effort to increase their market cap implemented new growth strategies. Wal-Mart lowered its square footage growth goals and “intends to halt a market saturation strategy” (Poggi & Bowers, 2006). Since adjusting its strategies Wal-Mart shares jumped “3.87 percent, to close at $51.28 in New York Stock Exchange trading, the highest level in about 20 months” (Poggi & Bowers, 2006), and has raised the target price of the stock to $59. Analyst Todd Slater stated "The decrease in U.S. square footage growth not only serves to enhance ROIC [return on invested capital], but should also decrease cannibalization and benefit future productivity"” (Poggi & Bowers, 2006).
Companies can learn from this example, to grow their locations based on current and future market expansion or contraction and to avoid market saturation.
CITE THIS AS:
YouSigma. (2008). “Wal-Mart’s Positioning Strategies." From http://www.yousigma.com.
Find charities worthy of your support and donate
|Copyright and Disclaimer|