What Are The Weaknesses Of Walmart

Decent Essays

Recently Target has been stealing customers away from Wal-Mart so they decided to revise their marketing strategy in order for the customers to come back to them and see that they still have every day good, low prices. According to Hass & Rigby (2004) “CEO’s are both exploiting weaknesses of other Wal-Mart competitors and simply maneuvering around the bear”. CEO’s are looking at the competition and trying to determine their weaknesses are and what strengths Wal-Mart needs to enhance. They realized that “focusing more on the basic necessities like food and medicine are Wal-Marts strong points” (Ferrell, O., Hirt, G., & Ferrell, L., 2009). Wal-mart has always made more money in their grocery and pharmacy areas in the stores and changed their …show more content…

The competitive environment became very fierce. They looked at the competitors and realized that they are starting to offer different products at lower prices and seem to be thriving. Wal-Mart competitors are getting designers to customize clothing and household items at a cheaper cost, and customers are flocking to the stores for designer items, while Wal-Mart has been riding on the “every day low prices” slogan to keep them running. “While Target long ago enlisted Isaac Mizrahi to design $19.99 giraffe-printed sweaters and Michael Graves to design tea kettles, Wal-Mart has been trying to figure out both its men's and women's clothing lines -- with only limited success” (Razhon, 2005). Wal-Mart continues to struggle to keep up with Target and their designer items. Because of Target being their main competitor, they examined them and realized they needed to change their market strategy. Wal-Mart started concentrating on the products they know were profitable. Those items were in the grocery aisles, pharmacy, and entertainment. According to Allen Long (2009) “Wal-Mart grocery prices are 15% to 25% lower than traditional supermarkets”. Customers will continue to shop the grocery aisles to obtain the lower prices and save money throughout the year by doing so. Wal-Mart is betting on those customers that come into the stores to shop for groceries …show more content…

One would think that the new market strategy would be geared towards both thriving and recession economies. During the recession, Wal-Mart almost seemed recession-proof. There are some reasons why Wal-Mart does so well during recessions. Some of those reasons are that they sell necessity items like toilet paper and brand identity. Wal-Mart brand has been known to be able to buy underwear and chocolate all in the same store and not have to go to specialty stores for items (Gross, 2008). Because of selling necessity items and everything else, Wal-Mart market strategy should be able to work in a thriving economic environment. The market strategy that Wal-Mart has is working with looks into the demographics and psychographics of their customers to determine what the customer wants at the lowest prices possible (Bhasin, 2017). This means that they look at the characteristics of their customers and modify the market strategy with the changes that are made by their customers. Wal-Mart is very convenient for many people because they can shop for everything from underwear to big ticket items like computers all in one store. When the economy is thriving, the working class customers are still going to shop at Wal-Mart to continue to receive the low prices

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