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
Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:
WalMart continues to have one of the most customer-centric mission statements of all discount retailers globally. Their mission statement is as follows "we save people money so they can live better" (Wal-Mart Investor Relations, 2013). From the first
Wal-Mart continually advertises their prices to be substantially lower than their competitors. The truth is, most Wal-Mart items do not
The receive coverage for preventative healthcare, low cost pharmacy benefits with minimal co-pays. Wal-Mart is known for selling products that are competitively priced or low cost. Employees have the advantage of a 10% employee discount on already reduced pricing. Employees can save for retirement with a generous match of 6% that is vitally important in today’s economy.
Evidently, Wal-Mart is not doing anything to differentiate itself from rivals. It gives no frills to self-service outlets always providing the cheapest prices. Through a well-built influence with suppliers, the company has gained the power to manipulate prices and amend manufacturing procedures thus wringing out more savings for its customers. All that the company does from the frequent calls to suppliers to doubling up execs in hotel rooms aimed at saving the
With around 5000 retail outlets worldwide, operating in more then a dozen countries and with over US$286 billion in annual sales, Wal-Mart is the top retail chain and number one fortune 500 company in the world. Wal-Mart is the top employer in the U.S. with 1.3 million employees, “the company accounts for 9 cents of every US retail dollar and sells around 20 per cent of the nation’s groceries and pharmaceuticals.” (Times News Network).
The success of Wal-Mart is due in large part to its ability to consistently produce high quality products at a low cost. This is very critical to the future success of Wal-Mart because it provides consistency to customers who are price sensitive. By committing themselves to "Everyday low prices," Wal-Mart assures customers that the products sold within their stores are competitive in reference to its retail competition. This low price strategy also provides Wal-Mart with a
Walmart serves nearly 260 million customers weekly across 27 different countries, both in stores and through its websites (“Fortune”, 2015). Walmart relies heavily on its proper and effective marketing strategies; Walmart would not be able to achieve the level of success without these strategies. Low prices, easy access for its customers, and social media campaigns are a few of the vital tactics Walmart has used in its marketing plan. “Save Money. Live Better” is Walmart’s mission in delivering customers products at the lowest prices. This low price strategy plays a marketing role that caters to customers who seek the lowest prices and with grocery stores that provide great deals (Brown, 2017). Walmart’s low cost business model is protected by its powerful supply and distribution chains throughout the world. Customers can expect the same cost efficient style in every Walmart store worldwide.
The five generic competitive strategies are low-cost provider, broad differentiation, focused low-cost, focused differentiation strategy, and best-cost provider strategy. According to the textbook, “a company’s competitive strategy deals exclusively with the specifics of management’s game plan for competing successfully” (Gamble, 93).
“Always low prices”, is the first thing you think of when you think about one of the most successful companies around the world, Wal-Mart. For years they stand as a well know company due to their everyday low prices and variety of products. Their mission statement is “Saving people money so that they can live better”. They have chosen their mission statement wisely yet there is a lot of controversy when it comes to this International Company.
Like all departmental and/or discount stores, Wal-Mart's strategies are focused around achieving the goals such as building a large and strong customer base, under-cutting competitors, and organization of its supply chain in the most efficient and effective manner and above all, market growth.
Wal-Mart Stores Inc. helps individuals around the globe spare cash and live better - at whatever time and anyplace - in retail locations, online and through their cell phones. Every week, more than 245 million clients and individuals visit our almost 11,000 stores under 65 flags in 28 nations and e-trade sites in 11 nations. With financial year 2015 net offers of $482.2 billion, Wal-Mart utilizes 2.2 million partners around the world. (Wal-Mart Corporate) Wal-Mart is a superpower in the business world and has been that way for 50+ years. Understanding how it got to this point and how it has maintained its successful business model starts with its
Price has always been the key strategy in Wal-Mart’s marketing strategy. The success of Wal-Mart’s low price philosophy and marketing campaigns has been instrumental to the company’s success in the past half century. It is clear that from Sam Walton’s first store in Bentonville, Arkansas in 1950 to the 6200 stores worldwide as of 2006, Wal-Mart has utilized the price strategy of the marketing mix to become one of the most successful companies in
Distribution cost/Sales: Wal-Mart maintains lowest distribution cost/ sales of 1.7% while their distribution cost of their competitors namely Kmart and Sears was 3.5% and 5% of the cost of sales.
Walmart strives to bring good value to its customers under one roof. They provide a wide variety of goods and brands at competitive prices.