Wal-Mart Stores; Marketing
Wal-MartStores is one of the largest retail stores in the world. The Americanmultinational was founded in 1962 by Sam Walton. In addition to thebeing the largest family owned business it is the largest singleemployer in the world, employing more than 2 million workersdirectly. It has presence in 27 countries around the world and overeleven thousand stores under different names. Marketing has played animportant role in the success of Wal-Mart Stores. For example, someof the slogans such as “save money live better” and “Always LowPrices, Always” have greatly influenced the market dominance of thechain stores.
Whenstrategic planning, Wal-Mart Stores requires to conduct a SWOTanalysis so as to get a strategic advantage in the market. Here isthe SWOT analysis of the Wal-Mart Stores organization.
It owns most of the buildings that its stores are established on. Therefore it doesn’t incur the cost of paying rent.
It has performed extremely well for the past successive years. Its stock performs best continually over the years.
It is a market leader whose scale of economy is unmatched, that is, it’s the leading retailer globally and this gives it a competitive advantage.
It offers its goods at low prices thus attracting many recurring customers. This gives its competitors a lot of pressure.
Its internationalization strategy has seen it open up over 4,000 units in fourteen different countries. These international operations have enabled it to earn 135 billion dollars.
It has faced many legal lawsuits associated with unsafe labor practices. This has cost the company a lot of money and decreased its corporate reputation.
The differentiation of its goods is very limited when compared to that of its close competitors.
Its online site offers different selection unlike many other stores.
It has the opportunity to grow and strengthen both its online and web businesses.
The company keeps on expanding and growing internationally, this will be a means to increase it revenue in the future.
The stiff competition from online companies such as Costco and Amazon which provides higher differentiation of their products, poses a threat of loosing some of its customers.
Increase in the cost of production and eventually it product’s prices has the threat of reducing its profits and competitive advantage.
Oneof the target markets for Wal-Mart Stores is the working classcitizens who like great deals and look for a central location to shopfor everything they need. It also targets market segments whoseoccupants are poorer and lower middle class. With the currenteconomic decline however, Wal-Mart Stores has been operating to caterfor the upper middle and middle class citizens as well.
Inrelation to product mix, Wal-Mart Stores stocks a large variety ofproducts includes foodstuffs, electronics, clothing and cosmeticsamong others. Wal-Mart Stores has adopted suitable marketingstrategies which have enabled it to grow big and get competitiveadvantage. One of their promotional strategies is offering goods atamazingly low prices. This greatly helps the company to attain manycustomers since everyone seems to look for the lowest price in themarket. Wal-Mart Stores has also made sure that its exceptionallyavailable to its customer’s such that a customer can contact themany time of the day. This has led to customer satisfaction aspect ofthe company as whole. It also tries to appeal to as many people aspossible through provision of goods that appeal people of allpersonality types. Social media advertisements have also madeWal-Mart Stores acquire a competitive advantage since many customersare able to know of the existence of its goods worldwide. Bloggingand you tube are some of the best video sharing sites which gratifythe Wal-Mart’s target audience.
Theinternal forces of the microenvironment of Wal-Mart Stores Companyinclude their customers, the suppliers, competitors, the companyitself, and the public. To ensure continued profitability, Wal-MartStores builds good relationships with its suppliers, formulates bestways to maintain and extend goods and services to its customers,liaise and communicate with the public so as to maintain a goodreputation, and pays keen attention to reactions of its closecompetitors.
Bryan,R Roberts and Natalie Berg. (2012). Walmart:key insights and practical lessons from the world`s largest retailer,London Philadelphia, PA: Kogan Page.