Wal-Mart Background

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Company background Wal-Mart is the world's largest retailer by annual sales and number of employees, tracing its history back to 1962 when it was first opened in US (guardian.co.uk). Wal-Mart operates in 27 countries worldwide under 69 different names including the acquisition of ASDA in the UK. Wal-Mart has reached $1bn in sales in 1980 and reached $414bn in 2012 and is currently employing 2.2 million employees worldwide. Wal-Marts stores offer merchandise such as housewares, electronics, small appliances, clothing and groceries. It has 13.4% of the market share in the US (CNBC, 2012) and 17.3% (Guardian, 2012) in the UK, being second largest retailer in the country after Tesco. Wal-Mart has been present in the UK after Wal-Mart…show more content…
This was a big step for ASDA which has helped them to create something different and unique and to succeed in the UK market. Adding new range of products into their shops helped ASDA to increase their market share: in 2003 ASDA had 17% of the market share up from 16.1% and 20% of the sales were from non-food items (bbc.co.uk). Other ways that Wal-Mart differentiated themselves from their competitors such as introducing new range of products and improving their quality as well as getting involved in local communities and reducing waste. All of these aspects have become more important to consumers these days and Wal-Mart has been successful in keeping up with consumer needs and preferences. One of the newest ASDAs policy is "100 day quality guarantee on all George clothing - or your money back" (asda.com, 2012) customers can return clothes bought from ASDA within 100 days, " £9 million of school uniform was bought as part of the trial and only £900 was returned and exchanged" this shows that Wal-Mart are using differentiation strategy successfully to fulfil customer needs. Focus strategy is when a company is targeting a type of customers or focusing on a type of products or services. Wal-Mart is known to be focused on keeping their prices low which is targeting families and individual with lower income. Also most of their stores in UK were located outside the towns which has given them a significant advantage as well as helping in
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