Wal-Mart: Future Growth Through Increased Market Share
One path for a company to grow is by increasing its share of the market. And if you like a big company that has increased market share and pays a dividend, then Wal-Mart Stores, Inc. (NYSE:WMT) should be on your radar screen. John Tobey explains to us that Wal-Mart is set to increase its market share for 2010.
(John Toby) - Even in a stable industry, a company can create a growth path by carving out a niche or developing a strategy that better serves customers. Many of today’s leading companies accomplished this by bettering their competitors in products, services, delivery, cost and/or quality.
Typically, such a company focuses on one area, while keeping other areas “acceptable.” Wal-Mart is a good example. Its success centers on being a price leader in many product areas. Quality, choice and service are adequate.
Each October, Wal-Mart meets with investment analysts to describe growth plans for the coming year. Because Wal-Mart rode through the recession so well, continuing to earn over $3 billion dollars per quarter, it has both the desire and resources to expand further. Its latest growth plan reflects that, with capital expenditures rising this year and next.
Wal-Mart Stores, Inc. serves customers and club members more than 200 million times per week at more than 8,000 retail units under 53 different banners in 15 countries. The Company operates in three business segments: Wal-Mart U.S. and Sam’s Club in the United States, and Wal-Mart International in 14 countries and Puerto Rico.
Disclosure: No positions in WMT at the time of writing.