Wal-Mart faces growth limits due to factors such as e-commerce competition and impacts on local economies. To overcome these, it could improve online operations and labor practices while supporting local economies.
Wal-Mart is encountering limits to growth due to several factors including competition from e-commerce giants like Amazon, and the consequences of its impact on local economies. Wal-Mart's business model, while advantageous in offering low prices due to economies of scale, is also known for harming small businesses and local economies by undercutting prices, paying low wages, and seldom reinvesting profits locally, a phenomenon often referred to as the Wal-Martization of the economy.
On the other hand, Amazon's success in the book selling industry, for example, is attributed to its efficient production model and cost structure which allows it to sell products at lower prices, including the cost of shipping. This has made it challenging for competitors with traditional business models to compete.
To mitigate these growth barriers, Wal-Mart might focus on improving its e-commerce offerings, reevaluating its labor practices, and developing strategies to support local economies, which could enhance its corporate image and customer base. These efforts could include higher wages, better employee benefits, and partnering with local suppliers and businesses.