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Walmart competitive strategy
Corporate level strategies of walmart
Corporate level strategies of walmart
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A target market for a company consist of demographics, Psychographics, and geodemographics. Walmart's strongest of the three segmentations would be demographic. Walmart’s target markets across the usa consist of the three demographic’s for walmart’s target market would be age, gender, and income. These three demographic segmentations are walmarts strongest customer according to Haley Peterson, on her article “ The average wal-mart shopper” on businessinsider.com where she explains the three demographics for walmarts success on being the worlds largest retailer. ( Peterson, 09/14). With the most detail out of these three demographics will help to paint a picture of the average walmart customer.
First we will talk about the age groups
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The gender that dominates the sales for Walmart would be females. In the Peterson's article about 75% of Walmart’s shoppers are female oppose to males are only 25% of sales. ( Peterson 09/14). Reasons for more female dominating the sales of walmart is to due with the household shopper. Most household shoppers would be mothers and or women in general. For examples on why this important for Walmart’s sales is to do with the products in walmart. Products in walmart’s are primarily grocery and household needs, with walmart not only being a grocery store, most walmarts contain clothing section, garding section, and jewelry section. These three sections alone help the sale of walmart because of the diversity in the stores. Females tend to be more of a patient shopper as opposed to males that usually go with a list or a few specific things, with this being said females that tend to shop at walmart for household items my stumbleupon items of their liking. Peter Mondrose’s article “Here’s A Breakdown Of Walmart Shoppers By Demographic” tells readers that wal mart's 3:1 ratio in sales by gender. (Mondrose 06/15). This shows us how Walmart's sales are generated by demographic from age to gender, but the last demographic that completes Walmart's average customer would be
Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.
..., there were also many aspects that all of these Wal-Mart shoppers shared. Mostly everyone dreaded the loud and obnoxious carts as they were walking into the store. And mostly everyone hated how Wal-Mart only had five of their twenty registers open. This caused the buildup of large lines for which people would wait to buy their items. The people in a hurry did not take this lightly. While the shoppers who weren’t in a hurry took this time to read the magazines and check out the candy options.
During the 1950’s and 60’s in northwest Arkansas, a surplus of unskilled labor existed due to “increasing mechanization of agricultural work”. Leveraging this pent up demand for employment, Sam Walton, the founder of Walmart, provided these agricultural men with prideful responsibilities as managers of his retail stores, while employing their wives and daughters as low wage clerks (Lichenstein, 2011). Forty to fifty years later, in an economy sagged by high unemployment, particularly among an unskilled, low educated workforce, the practice of promoting men to run stores while women are forced to settle for low wage labor remains prevalent at Walmart. In fact, statistical analysis from plaintiffs in the 2001 Dukes v. Walmart lawsuit showed that women comprised nearly 70% of hourly employees, but only 33% of management positions (Hymowitz, 2011). The overwhelming disparities between men and women in management relative to the proportion of those in hourly positions further cements the continual existence ...
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
The top two reasons for such success in ranking first in retail store market, is because Wal-Mart is convenient globally and so are there prices in the competitive market . Wal-Mart has three segments which are superstores, discount stores, and Sam's Club stores, all of these are scattered in the United States, Canada, Mexico, Europe, Brazil, and Asia. One downfall was from Sam's club because too many were opening all over internationally it decreased the number of customers per location. Overall despite the company's decline on Sam's club sales, the Corporations did well over all with the figures brought in and conditions.
Wal-Mart now operates retail stores around the globe in three different facets: Wal-Mart Stores, Sam's Club, and International.
Wal-Mart provides low prices for people to afford more of these great products and to stretch their dollar more. Wal-Mart opens their stores in rural areas that are destitute. These people don’t have the ability to buy the latest and finest products around. That lifestyle of buying and getting the modern item is foreign to them. Thanks to Wal-Mart these people are able to grasp this lifestyle and experience for themselves (Coster 1). People are saving hundreds of dollars and these savings really add up. According to a study by the New England Consulting group, U.S. consumers save $100 billion annually, or $600 for the average America family (Maich 6). These savings for consumers and families are astounding. This data is not only about those who shop at Wal-Mart but this data is about all consumers. This is so because “Wal-Mart sells for less, it forces competitors to cut prices in order to compete” (Maich 6). A s...
WALMART store inclusive is the largest retailer and the largest company in terms of revenue.
Wal-Mart is the world's largest retailer and second largest corporation. It is the largest private employer in the United States and Mexico. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the United States, with an estimated 45% of the retail toy business, having surpassed Toys"R" Us in the late 1990s. Wal-Mart has 1,929 stores which as of 2005 sales figures totaled about $155,477,000,000 in sales. Wal-Marts revenue as of 2006 was an estimated $315,654 billion USD, net income $11.231billion USD, and employs more than 1.8 million employees.1
Many employees claim low wages, no benefits, irregular schedules, and unreliable hours as some of the horrible working conditions they have to endure. Walmart employees put together different unions all the time to try and protest or strike about the wages, treatment and anything else that seems to come along with being an employee of Walmart. Walmart does not take well to these unions. Women of Walmart seem to have it the hardest though. As recently as 2013, despite the fact that women account for as much as 57 percent of Walmart’s U.S. workforce, women were paid $1.16 less per hour (Osterndorf). In an article about Walmart and how it treats employees wanting to take sick days, a woman in fear of losing her job at a North Huntingdon Walmart, went back to work even though she had doctors' notes and hospitalization recorded, which were both rejected by her supervisors, to excuse her from work due to a miscarriage. She was worried the she would get fired due to absences so she went back (Abrams). Walmart also does not give out good health care to its employees. There are many claims of Walmart cutting health care for employees or finding the cheapest possible solution for an employee's health care. In 2014, the company cut insurance benefits to its part-time employees (Osterndorf). In a New York Times article about health care called, Walmart to End Health Coverage for 30,000 Part-Time Workers, it stated
Wal-Mart has two brands of stores, the regular Wal-Mart and the Super Wal-Mart. The difference being that the Super Wal-Mart has a grocery store inside as well as all the other products. Products offered by Wal-Mart vary from automotive needs to Compacts Discs and DVD's. Family's can get households goods for kitchens, bedrooms, or patios. Wal-Mart's offer products for every household need like vacuums, mops, and brooms. Wal-Mart is an example of a one-stop shop; parents can get clothes for the kids or for adults.
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
They also encourage employees to voice their opinions through the company’s Associate Resource Groups and town hall meetings. By removing barriers within the company leads them to empower more woman. Walmart employs more than 1.2 million woman and is working to build a company where every woman is empowered to realize their full potential (Next Generation). Although disseminating authority throughout the organization might improve employee morale, they still must have a high degree of control. They have to establish performance standards based on company objectives. Most employees don 't leave good companies, they leave bad bosses which is why Walmart strives for employees to have a sense of connectivity with the organization and provide a framework for what the future holds (Peterson).
Walmart operations comprise three business segments, namely: Walmart U.S., International and Sam’s Club. The Walmart U.S.
4. Hale, Todd. “Understanding the Wal-Mart Shopper.” Nielson Trends & Insights: Page 1. 10/19/2008 http://www2.acnielsen.com/pubs/2004_q1_ci_walmart.shtml