1) In summarizing the critical issues and facts that surrounds Wal-Mart revision of the organizations marketing strategy was their lack of ability to be competitive. The company focus point initially was to ensure their consumers received the lowest price on the market. However, marketing consist of much more than pricing a product. Although, this is a relevant factor other elements were ignored and the cost of operating the business needed to be revamped. For example, the process of analyzing other competitors within the industry needed to be reviewed within the organization. Wal-Mart needed to consider all of the consumers such as the middle class clientele as well as those seeking trendy stylish clothing choices, normally catering to the …show more content…
For example, Target is one of their main competitors who begin to market their product too, at a low price even though their products were not the same. For example, Target Corporation supplied the consumers with clothing, household goods and trimmings to make the home more livable. Whereas, Wal-Mart provided a service that was more geared towards being loyal to their customers and ensuring monitoring the product making it be less cost effective. Therefore, their clientele can consist of those returning consumers along with the new costumers. When these companies changed their strategies for marketing they addressed the concerns of being low in cost, making more competition (by adding the perishable foods to their store, along with making their store a market mix company for convenient shopping in one central location), offering medical prescription and ensuring the consumers origin of need/desire are meet and …show more content…
These services would fulfill the consumer’s needs and desires by providing them with adequate services. However the service proves to be quite different based on the need of their customer. Wal-Mart was force to focus on the strengths verses their weakness. The strengths being that they were loyal to their consumers by indicating their needs and objectives over their organization policy and procedures. Later, they begin to realize that this feature alone was not enough for the company to thrive successfully so they begin to further investigate their marketing approaches by analyzing the consumer’s manner of shopping and that determined they had missed the mark and this method was viewed as a weakness. Wal-Mart’s had not deifier if expansion should continue or enhance the quality of stores that already pre-existed. Therefore, the Chief Executive Officer (CEO) H. Lee Scott had to intervene to make a conscious decision, which supports the expansion. Nevertheless, this was not a realistic approach because the company needed to balance the revenue coming in and going out of their corporation. Also the economic dynamics was not support these company changes. In the event that the funds going out is more cost effective of the revenue coming in than this would explain the way the company was not
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
Wal-Mart as we know it today evolved from Sam Walton’s goals for great value and great customer service. Mr. Walton’s competitors thought his idea that a successful business could be built around offering lower prices and great service would never work. Mr. Walton also credited the rapid growth of Wal-Mart not just to the low costs that attracted his customers, but also to his associates. He relied on them to give customers the great shopping experience that would keep them coming back. Sam shared his vision for the company with associates in a way that was nearly unheard of in the industry. He made them partners in the success of the company, and firmly believed that this partnership was what made Walmart great.
Nearly everyone is at least somewhat familiar with Target stores; the famous bullseye logo is identifiable all across the United States. With the motto "Expect More, Pay Less", the company suggests that customers can expect more of everything, at more reasonable prices.1 Target's commitment to the consumer, as well as it's employment consideration and management style led Fortune Magazine to name it as one of the Most Admired Companies in 2005.
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
Wal-Mart is one of the world's greatest assets to most people. It provides consumer's a place they can go to virtually get anything they need from, car repairs, to groceries, prescription's, even the latest toys and electronics. With all that said, this paper relates to the different forces in business that affects business: competitive, economic, political + legal + regulatory, technological, cultural + social, demographic, and natural forces. Although there are technically seven we are going to focus on competitive, political, technological, and natural forces.
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.
The product leadership strategy will also be briefly discussed, however, due to its limited scope in this particular environment, it will not be emphasized. Wal-Mart has effectively implemented an operational excellence strategy in its quest to continually lower costs and deliver products and services with minimal difficulty or inconvenience. Whether it be through reducing costs, through its various relationships and practices with suppliers or controlling energy consumption by monitoring and controlling lights, heat, A/C, etc from their head office or even managing inventory efficiently, Wal-Mart has effectively minimized both variable and fixed costs while also ensuring stock outs are minimized. Wal-Mart has also effectively eliminated (non-value) added production steps as it successfully re-defined the integrated retailers relationships with its manufacturers. Wal-Mart has also been successful in implementing a variety of IT systems that have also facilitated this strategy.
The first Wal-Mart store opened in July of 1962 in Rogers, Arkansas by Sam Walton who believed that the future of retailing was in discounting and to avoid competing with established giants like Sears and Woolworth, Wal-Mart’s stated out of the large cities in the beginning and this strategy help avoid competition, while in rural areas Wal-Mart began growing their customer base by offering ways to save money and shorter travel distance, Sam Walton felt the best way to make customers happy was to provide the low prices every day (Farhoomand, 2006). The company needed to continually find ways to control the operating costs so the savings would then be passed on to Wal-Mart customers in the form of lower prices than the competitors. Walton was opposed to having any kind of employee unions for its company and saw them as a disruption and an inconvenience (Farhoomand, 2006). The continued search for lower prices made him aware of business related travel cost, Wal-Mart executives stayed in low cost hotels when they traveled and the cost related to the services provided by suppliers, Wal-Mart helped suppliers improve operations and efficiency to produce lower cost. Walton wanted the suppliers to correct any nonessential or insufficiencies existing in their business structures as a way of gaining lower prices and higher value products for its Wal-Mart stores. To further push savings Wal-Mart forced cost down by eliminating the middleman and buying directly from the manufacturers. This cost saving also applied to executive salaries Walton felt providing employees with stock options, training opportunities, and allow employees to grow and develop would be a better way to engage and involve them in his vision (Farhoomand, 2006).
The world is constantly changing every day. With new businesses popping up all over the world, though there are also old businesses that are still in operations, and leading the market. One of the stores that is leading the market today is an old business that was founded in 1962, in Rogers, Arkansas, the store is known as Wal-Mart (Wal-Mart, Inc., “History”, 2014). Walmart’s history, competiveness, employees, and saving money for the average person is what makes it unique (Wal-Mart, Inc., “Sam Walton”, 2014). Though it leads others wanting to compete to beat Wal-Mart prices and gain there customer bases.
The American Marketing Association provides the following definition of marketing: "Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders" (Kotler & Keller, 2006). Clearly, the value to the customer must first be defined by understanding the customers' needs including those that may go beyond the product or service a company is selling. For example, Safeway, a grocery store chain, goes beyond fulfilling a customer's need for groceries by addressing other needs, such as convenience, thru a door-to-door delivery of their groceries. While another company, Wal-Mart, is successful by making their products widely available to as many people as possible at the lowest possible prices. Again, the product is only part of the equation; Wal-Mart's marketing mix also focuses heavily on price and distribution (place). Finally, Microsoft now allows customers the convenience of purchasing and downloading their favorite software titles directly from Microsoft's Windows Marketplace website instead of having to travel to a retail store.
Jenny(包君英) Mrs. Cary Ann Vincent Applied English 131 12 June 2015 Research Project General Topic: Economic in America Restricted: Wal-Mart stores in America More Restricted: Wal-Mart stores impact the America economic Topic Chosen: Why Wal-Mart Stores Affect Local Economies so Successfully? Outline I.Introduction a)With the development of the world economy, retailing industry has played a growth outstanding role in the economic. Wal-Mart, which is almost a household name in the world, its success is not absolutely accidental. b)This article consisting of three parts, first is some basic information about Wal-Mart, second is analyzing reasons for its success, last is summary and points.
Wal-Mart’s foundation is built on its vision, mission, and purpose. The organization’s ambition since its’ creation is to be the top retailer within the industry which is manifested in its’ mission statement by saving people money so they can live better (Ferguson, 2017). The true reason for Wal-Mart’s existence, as Wolfe (2011) describes as “Soulful Purpose,” was profoundly stated by the founder of Wal-Mart upon accepting the Presidential Medal of Freedom in 1992, from former President George H.W. Bush: “If we work together, we’ll lower the cost of living for everyone… we’ll give the world an opportunity to see what it’s like to save and have a better life.” Wal-Mart continues to be consistent towards achieving its purpose and vision by maintaining the organization’s reputation in saving the customer money by selling quality products at lower prices.
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.