Wal-Mart Strategic Analysis

2307 Words10 Pages
Wal-Mart Stores, Inc.: A New Set of Challenges Part I Strategic Direction Mission: Wal-Mart is an American – based discount retailing store that implements that lower prices will result in higher sales volume, so to continue to provide customers with quality goods at everyday low prices will keep our customers satisfied and coming back. Objectives: Short Range: · To have 90% of the customers leave the store satisfied with their experience at the store. Long Range: · To be the world 's largest low cost store that carries all types of merchandise for all possible consumers. · To maintain strong customer loyalty. · To increase the amount and type of stores internationally, as it is in the United States.…show more content…
Marketing Strengths: · Wal-Mart 's marketing strategy relied primarily on word-of-mouth advertising. · Wal-Mart spent only 0.5 percent of every sales dollar on advertising, compared to 2.5 percent for Kmart. The savings further helped the company to reduce prices on its merchandise. · Wal-Mart 's national marketing efforts had focused principally on image advertising. · Cutting costs whenever possible, which can lead to lower quality merchandise. · Relies primarily on word of mouth to communicate its marketing message. · Use backward expansion, which is opening stores in small towns surrounding a targeted metropolitan area before moving into the metropolitan area itself. Weaknesses: · Wal-Mart 's marketing strategy relied primarily on word-of-mouth advertising. · Relies less on advertising than most other discount chains do. · Relies primarily on word of mouth to communicate its marketing message. Operations Strengths: · The stores are open seven days a week and extended hours during the holiday season. · In order to maintain customer loyalty, Wal-Mart also maintains a "Satisfaction Guaranteed" program. This program assured customers that Wal-Mart would accept returned merchandise on a no-questions-asked basis. · Wal-Mart 's distribution costs were also significantly less than its competitors. · Wal-Mart 's distribution centers were serviced by a fleet of company-owned trucks, which made

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