Wal-Mart's Market Development Strategy

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:

Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.

Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force.

Its everyday low price concept provides customers with products with cheaper prices than its competitors rather than relying on sales. Wal-Mart can use this strategy because of its large-scale and efficient supply chain. Their products are purchased from cheap domestic suppliers and low-wage foreign markets, which allows Wal-Mart to sell products at a low price and earn profits. On the other hand, Wal-Mart is open twenty-four hours, providing food, dry foods and services, all in one location that will convenient customers. In addition, Wal-Mart focuses on IT and innovation so that their technology has always been ahead of others. For example, it built its own information systems, satellite communications systems and data interchange system. Wal-Mart’s value proposition is maintaining its leadership in low price and huge selection in order to provide a good value to

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Ans:Wal-Mart,Inc runs a chain of large, discount department stores.it is the world’s largest public corporation by revenue. Walmart is the largest private employer and the largest grocery retailer in the United States. Walmart is one of the best known industries all over the world. Its concentration of a single business strategy is the basis of its success over the decades by this strategy without having to rely upon diversification to sustain its growth and competitive advantage. The leading marketing strategies of Wal-Mart are low prices, service and smile. However by adapting this strategy, it has risked itself by putting all of a company’s egg in one industry basket. While its global strategy worked elsewhere, the results were bad in Germany and Korea that Wal-Mart withdrew from those countries.

As well, the world’s economy is not at its best moments, people become more preoccupied about price, and use this as the number one shopping criteria. On top, Wal-Mart has the ability to diversify their products and service offerings. They could add travel agencies, kindergartens, cleaning services, tax services and much more. Another good opportunity is to improve in the areas they were criticized before, such as employee benefits and medical coverage, employees’ wages and even environmental issues as pollution. Wal-Mart could also focus on its online sales, as it is becoming the new shopping trend. Many opportunities await this retailer in the future.

Wal-Mart’s innovative leadership includes management teams using Smartphones and state-of-the-art monitoring systems. These innovations allow management to lead their staff successfully no matter where the managers are. The controlling function of management uses closed monitoring in-store systems, innovative approaches, and computers in the stockroom. Wal-Mart has enacted checks and balances and control of incoming supplies allowing stores to maintain fully stocked shelves to serve consumers better (internal innovations).

Wal-Mart stores, one of the most successful retailing chain in the world, has gain competitive advantage over its competitors. Thanks to his unique set of features, like its powerful IT system, its way of manage suppliers or its logistic system, Wal-Mart is able to responds quickly at demand changing, maintain low costs and satisfy its customers.

Since Walmart has been able to dominate the market for affordable and convenient retailing throughout the world, we know by hand that Walmart has all the components that a company needs to be successful in today’s market. Walmart’s has been able to live up to its slogan “Save Money, Live Better!!!” by providing all its customers with the best prices and values, but by also providing great service, convenient locations etc. Walmart “has grown substantially over recent years, and has experienced global expansion, which only helps its prosperity. This is one of Walmart’s greatest strengths – they are recognized on the global scale and have high brand equity. Walmart is the largest employer in the United States and a retail giant that has the clout to make or break suppliers. This is a strength because they have most of the power in their targeted market. Walmart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U.S (Jan).” Walmart strengths include:

Wal-Mart Stores Inc. is known as the largest retail company in the World. It holds the top spot in Fortune Magazine’s Fortune 500 Index of largest corporations. Operating under 3 segments: Wal-Mart U.S., Wal-Mart International, and Sam’s Club, it boasts plentiful market share domestically and internationally. The company focuses on 4 main priorities. Those being store formats, technology deployment, human capital, and internationalization. Although they have been the world leader in all four categories, they must stay ahead of the competition if they wish to maintain their stronghold on the market.

The company 's culture already is receptive to this type of strategy. They have been expanding their reach in all facets of their business for years. This type of strategy allows for current employees to be promoted by relocating to new stores, have increased roles in the success of new locations, and be a part of a winning organization. Also, because of the societal influence that Wal-Mart has, they can improve the quality of life in the areas of expansion. This is a very important aspect of Wal-Mart as discussed with their scholarship and community donations.

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

Analysis for Business Policy: Strategic Management. Instructor: Dr. M. Reitzel, DeVry University, February 2007, Austin, TX. Members of the Team: Marcus Bedford Jon Cable Wayne Oulicky Constince Sanchez

The store in the competitive retail industry that is referred to as the giant is Wal-Mart. This store has leaded the retail industry’s market of profit and sales for years. The stores expanded to every nook and cranny and became a household name. The stores went from only retail items to grocery stores, to having restaurants such as McDonalds and Subway, to having hair salons, optical stores, and mechanic services. The retail giant boomed, and soon found itself at its peak and then consistently falling behind the competition. It has been found that in order for a business to succeed in a competitive market, it must shift with the market and not fight against it. This is something that Wal-Mart has