1. Wal-Mart has been one of the top retail stores for years. It has grown even more throughout the years and has expanded into more than just a retail store. Wal-Mart has been the "go to" place for groceries, clothing, shoes, house hold goods, electronics and more. In 2006 Wal-Mart experienced a decline in sales due to the rise in the retail market. Their competition included Kroger, Costco, and Target (Ferrell, 2009). Target was Wal-Mart biggest competitor because they figured out a way to draw in the middle-income customers, by creating a stylish and fashionable reputation (Ferrell, 2009). Wal-Mart was now forced to compete with stores that had a better marketing strategy, while still trying to obtain its loyal customers and keeping their …show more content…
When it comes to marketing, there is always going to be competition. One must stay ahead and on top of things from a competitive perspective because you do not want to be the business falling behind on sales because of it. In the competitive environment, Wal-Mart had to rethink its marketing strategy because of its decline in sales in the retail market. Target was Wal-Mart's biggest competitor. Target grabbed the attention of middle class individuals that throbbed off of their stylish clothing and not worrying about the cost of it, whereas Wal-Mart sought out to upgrade their clothing line into being more fashionable and even by running ad's in Vogue and doing a fashion show in Time Square, but they failed with sales in doing so (Ferrell, 2009). Wal-Mart and Target cater to different demographics. Wal-Mart excels at low-cost groceries, pharmacy, and entertainment, while Target excels at household goods, clothing, and electronics (Ferrell, 2009). Shoppers found that Wal-Mart's quality, assortment, and limited services were not worth the savings (hbr.or). Wal-Mart knew that their sales were dropping and they had to do something about it besides just keeping their low prices. Research shows that Wal-Mart competitors succeeded by building their local market share, catering to their targeting segments, developing a more rigorous pricing strategy, and winning with their supply chain (hbr.org). When Wal-Mart seen that there competitive environment was winning, they still stayed …show more content…
It is clear that Wal-Mart made a turnaround in the recessionary economy, but it is not certain that the same marketing strategy will work during a thriving economic environment. In a thriving economic environment, people tend to not focus so much on the financial aspect of things. A person will look at things in a whole new perspective because the economy isn't suffering. I think that if the economy had not suffered during the recession, Wal-Mart would more than likely still be suffering in the market today. Yes, it is true that when it comes to saving an extra dollar everyone wants to do so, but at the same time it is not about the all mighty dollar when it comes to style and fashion. People that like to look chic do not mind spending extra money. I am a customer of both Wal-Mart and Target. I go to Wal-Mart for my groceries, toiletry, household goods and sometimes electronics but when it comes to clothing, shoes, and furniture, Target is by far my favorite store "hands down", regardless of a struggling economy. I think that Wal-Mart should think about branching out to more companies when it comes to upgrading the company business. Wal-Mart has always just been the store that more people go to "ONLY" because you can get a better variety of products all in one place instead of going to different places. The lower prices can always be a plus for Wal-Mart because not everyone can afford to spend extra money, so this alone will continue to keep Wal-Mart in the running for
The success of Wal-Mart is so great, that many people believe that Wal-Mart is becoming a monopsony . Suppliers are forced to deal with Wal-Mart because of the large percentage of sales at Wal-Mart cash registers. As such, Wal-Mart also has the ability to dictate prices of the goods it receives from the suppliers. Every day, more and more retail stores close their doors for good because Wal-Mart controls such a huge margin of the retail sector.
As I have outlined in the charts below, there are various similarities and differences between Wal-Mart and Target. Wal-Mart is Target’s primary competitor, and vice versa. Wal-Mart has a strong market presence in its global markets and has a diverse range of products and services that are affordable and available in stock. Target, on the other hand, does not have a strong market presence or efficient product supply; however, Target’s physical environment and innovative products further the brand’s image and value. Unfortunately, Target and Wal-Mart are both e-commerce laggards with major competitors such as Amazon. Target faces complications with their pricing strategies and their product availability, which hinders their strength when competing
Wal-Mart has had a significant economic impact on the US, as well as the economies of countries that have relations with the US. Wal-Mart is the world’s biggest company of any kind, with 80 percent of the households in America purchasing something from the superstore; it is the nation’s largest retailer. Wal-Mart’s continuing price reduction has given Americans the advantage of being able to afford 15 to 20 percent more than they previously could. (Hansen) In a world governed by globalization and greed, competition has become rigid; as a result firms like Wal-Mart have utilized advanced marketing strategies to insure that they are on the ‘neck’ of competition, and are the core deciders of the market. (Ortega) However, Wal-Mart made decisions that were of a disadvantage to aspects of the economy, including the depletion on a small scale of Small Town USA.
In other words, it wants to offer lower prices than a competitor like Target in order to drive foot traffic and sales. Wal-Mart has been effective in its quest, but Target has an edge in one area, and it 's an area that has the potential to grow. Target 's secret weapon is its REDcard. For Target customers using the REDcard, Target is actually cheaper than Wal-Mart. This is because Target REDcard members save 5% on most purchases. Plus, Target REDcard members visit the store more often and buy more items. Target is also offering free online shipping for REDcard members, which has led to significant online penetration. Wal-Mart has the edge, but not when you include Target 's
After looking at the Business practices, marketing, products, and services of Wal-Mart I no longer have a doubt that we can compete with Wal-Mart, but the new question is do we want to? In order for Target to be a competitor with Wal-Mart, Target would have to lower its store standards, treatment of employees, and target market. Along with these things Target would also have to go against one of its store standards, and start buying products that were made using slave and or child labor. A few ways that Target could improve by imitation would be through increasing its in store services. The recent addition of the clinic in store is a new and innovative idea a step ahead of Wal-Mart.
Wal-Mart is a chain like stores. It operates in a very vast market. This company has comewith both advantages and disadvantages. It has changed the relationship between big-box retailers and manufacturers. This company has been viewed to be the core cause of bankruptcy of several American businesses together with a high rate of unemployment in the United States. Some people seem to be voting for Wal-Mart while others are not on its side. The supporters are for the company since it has enabled them to shop at a low-cost and at one-stop shopping. Others are against the company since its causing a lot of harm to the small businesses and to the economy of the United States as whole. There
Wal-Mart has transferred itself from a simple variety store into Wal-Mart Supercenter and has other chains which include Wal-Mart Neighborhood Market and Sam’s Club. Wal-Mart Inc. has found a way to offer options to the consumer not classically offered in grocery. By offering options such as an optical center, one-hour photo processing lab, Tire & Lube Express, and even in some cases hair and nail salons, pet shops, and pharmacies, Wal-Mart has taken steps to break the mold and offer consumers options that other stores cannot and has done a good job at that. With these types of options you could be in a Wal-Mart Superstore for hours and complete all of your afternoon shopping.
Walmart is one of the most successful franchises of all time and continues to take fire from multiple angles, whether it’s about the costing of jobs, the wages, the health insurance, the small business destruction, or the environmental impact, but can always back itself up by negating those claims with facts that proves that it is beneficial to the community.
Last, Wal-Mart is also in direct competition with large supermarket retailers. Production capacity in the grocery industry is quite populated and Wal-Mart poses a serious threat to many supermarket retailers, both large and small. Kroger, Albertson’s, and Safeway are all finding it very difficult to compete with Wal-Mart’s low prices. Because the industry is so crowded, even the large supermarket retailers are seeking to differentiate themselves in order to stay afloat.
Wal -Marts' major competitors are the Kroger co. #2 in annual sales, Albertsons' Inc. #3, Safeway,Inc. #4, and Costco Wholesale Group #5. Now even though Wal- Mart is leading the way in total sales the #2 and #3 businesses lead in way with total # of stores. The Kroger Co. has 3,302 with Albertsons at 2,476 stores nationwide. Wal-Marts total sales for that year alone was beating its 2nd place competition alone by more than 80 billion dolla...
Wal-Mart serves as a go to place to save money when buying necessities. It is a huge department store that sells not only clothes, but food, as well as home goods, home appliances, furniture, plants and many more daily household items/ necessities. Wal-Mart provides these things at a lower price that other stores where food and such items can be pretty pricey especially if you have a large family. Wal-Mart was created to serve the same purpose for everyone and very often does but for some they go there more based off need than want to actually go there. Fundamentally Wal-Mart does do the service of being a grocery/home store that has a wide range of items that a family needs whether it's food, school project materials, or things for your home.
Many large retailers such as Target and Nordstrom did not do well during the recessionary economy. Many of those large retailers had to shut some of their stores down due to low sales during the recessionary economy. During a slow economy the Wal-Mart Incorporation did great. Wal-Mart Inc. did great during the recessionary economy was due to Wal-Mart’s everyday low cost marketing strategy (Ferrell, Hirt, & Ferrell, 2009). The working class consumers are Wal-Mart Inc.’s primary target market clientele. As a result of the recessionary economy, Wal-Mart gained the competitive edge over its competitors and caused their upper class consumers to begin shopping at Wal-Mart Inc. (Collins, 2011).
Wal-Mart and Target are two similar global corporations. If one asks each of these store’s customers why they shop there, somewhere in their answer one will find them saying that they can find everything. The difference between these two corporations is their mission, marketing, and quality. Each of these stores are looking to offer a different experience despite selling similar goods. So, when profits are not changing in the United States, they’ve opted for an expansion into other countries. They have opened stores and provided services outside of the United States.
The benefits or competitive advantage Wal-Mart derived over the years from its supply chain management practices is also covered. The reason Wal-Mart is ahead of their competition is because they invest in technology in the 1980s. This investment paid off in the long run. Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. They have set up own satellite communication in 1983. Employees at the stores have the ‘Magic Wand’ at hand. These barcode scanners allow you to check the prices of items at that particular store by scanned the barcode on the product. This is especially helpful when there is clearance that isn 't always marked and sometimes clearance items are cheaper than they
The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.