Research Paper on Walmart Case Solution
Sam Walton founded the company in 1962, and it was incorporated on October 31, 1969. Sam’s Club retail warehouses are also owned and operated by the company. Walmart has 11,443 stores and clubs in 27 countries as of January 31, 2021, trading under 56 different names. Walmart is the biggest retail store of the world with the sales of $549 billion in 2020. Not just in sales but in employees as well it is the world largest business with employees around 2.2 million. It is the US’s biggest retailer with total of 65% of total revenue.In the United States, Wal-Mart has three separate retail formats:
- Discount Stores: They keep general merchandise and supermarket inventories. They also have optical shops, garden shops, pharmacies, and one-hour photo processing laboratories, among other items.
- Supercenters:It contains all of the features of a department store as well as a full-service supermarket. It has restaurants, gas stations, and other conveniences.
- Neighborhood Markets:There are smaller stores that mostly serve as grocery stores but often serve a variety of other needs. It bridges the gap between discount stores and superstores.
The company is primarily run on a three-part business model:
- Walmart is a retailer based in the United States (making about 64 percent of its net sales)
- Walmart International is a global retailer (making about 24 percent of its net sales)
- Sam’s Club is a membership club in the United States (making about 12 percent of its net sales).
In the competitive world all companies want to secure their future by maintaining customer loyalty. The massive disruption that technology is causing in the retail industry is alarming. Retailers must rethink their strategy to survive this disruption. Their competitors will if they don’t. Low price strategy plays important role but cannot stand alone in today’s technologically advanced environment.
Marketing strategy used by Walmart
Its key business strategy is to “be competitive in terms of assortment, differentiating with the way customer’s access, leading in terms of price, and providing an amazing experience with the slogan of EDLP (Every Day Low Prices).” Walmart has a successful marketing plan to stand out in a competitive market; the strategy is adapted to the needs of particular markets, so the system can look different in different countries. The business performs comprehensive marketing and consumer analysis in order to evaluate the best persuasion method to use in the particular market.
The department’s primary priority is to have happy and loyal customers; in order to build and sustain customer loyalty, the organization has introduced CRM (customer relationship management) systems in all of its locations.
Walmart’s marketing goals include the price, variety, and accessibility of their goods to all customers in all of their stores. They aim to focus on customer satisfaction before ensuring that demand for their goods remains high.
The business, in particular, uses a 4p marketing mix strategy to ensure that the 4ps (pricing, products, promotion, and place) are handled appropriately.
- Walmart adheres to a low-cost approach and promotes bulk sales
- Use diversification strategy which means that, even though one commodity is under-marketed, complementary products help to drive sales of the others
- SKU systems and standard barcoding make the supply chain more cost-effective and competitive.
- Walmart carries a wider selection of brands in the segment. Furniture, groceries, electronics, hardware, health and beauty goods, fitness, recreation, and entertainment are all offered by the company.
- The company and its suppliers have a good working relationship. This encourages them to buy vast quantities of merchandise from them, enabling them to give greater discounts to their customers and, as a result, make more money.
- Sales campaigns, advertisements, public relations, and personal selling are all part of Walmart’s business policy.
- The Company advertises on the internet as well as in newspapers. It employs promotional rewards including discounts and exclusive deals
- In-store personal marketing happens as salespeople persuade consumers to try bulk packages or new products
- Walmart’s public relations department uses press releases to keep investors and customers up to date on offerings, strategies, and policies. Apart from that, the company occasionally contributes to charitable causes, making it an important part of the marketing mix for attracting a wide range of customers.
- Walmart is a robust ecommerce website that enables shoppers to purchase merchandise without visiting a retail store
- The well-organized distribution centers make picking up orders and distributing them directly to consumers easy for shops
- Walmart can monitor items in inventory or in transit due to high IT systems
- Every Walmart store, especially in the United States, is strategically placed to ensure that orders are delivered on time to customers.
Walmart’s management understands that it can only provide value and high-quality offerings to its customers if it has happy, high-quality, and plentiful human resources.To meet this noble agenda, the human resources department ensures that the needs of employees regardless of their location have been addressed effectively.
Low cost strategy
Walmart’s marketing and trading strategy has enabled the company to offer its goods at significantly cheaper rates than its competitors; its low-cost strategy has given the company its iconic reputation. Firm-level markets, flexible production networks, and reduced labor costs are the three primary methods used by the organization to keep prices down.
Total quality management strategies
The organization has an extensive information and technology framework in place to ensure that activities within outlets in various locations are handled effectively. Customer service, internal process control, and branch contact are all dependent on the system. Intranet, internet, and e-business tools are some of the company’s information channels.
Walmart is up against a lot of competition, particularly because customers have a lot of choices for the same items Walmart sells. Groceries, electronics, and other household products are examples. However, among all of these competitors, Walmart’s main rivals are Costco, Target, and, more recently, Amazon, with whom it now competes in the e-commerce market…………………….
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