Delivering Superior Customer Value Term Paper

Excerpt from Term Paper :

Wal-Mart and the Delivery of Superior Customer Value

The paper will identify Wal-Mart's value proposition and their strategies for optimizing communications and delivering superior customer value.

Researches will be made on the Wal-Mart, the history of Wal-Mart and their status on customer service, market and organizational responsiveness and how they create/deliver superior customer value.

The paper will review the strategies and methodologies, which are used by the management of the Wal-Mart regarding the delivery of the customer values.

The findings and researches will be used to identify the methodologies, which the Wal-Mart's management follow in delivering the superior customer value.

The analysis of the Wal-Mart's success history and its relative background will be further presented in the paper, a conclusion will also be added in order to provide the reader with the overall analysis of the study.

In order to comment on the strategies of Wal-Mart's management regarding superior customer value, one has to know the relative background of its inception and development. The paper will initially provide the relative background and the brief history of its creation.


Founded in 1962 by Sam Walton, Wal-Mart followed an amazing pattern of success and growth, eclipsing all other U.S. department store retailers by the early 1990's. In early spring 2001, Wal-Mart enjoyed a huge market capitalization of over $230B, which was down from highs of nearly $300B in early 2000. Wal-Mart has achieved a well-entrenched position in the value chain of its customers as well - that of the lowest cost consumer goods retailer.

Hence, the value that Wal-Mart provides is two-fold. First, it provides value to its suppliers by operating as a large, relatively stable, nearly omnipresent channel for sales of goods, which provides rapid feedback on unit sales and localized demand. Secondly, and arguably more importantly, Wal-Mart provides value to customers by offering aggregation of a wide variety of consumer goods in a single location, and selling those goods at the lowest prices."

The history and the relative background of the creation of Wal-Mart signify the fact that the management and the organizational authorities of Wal-mart have always tried to emphasize on the customers demands. The authorities have always considered the fact that the customers are an effective part of the business of the organization. Infact, the entire business is based on the demands and wishes of the customers. Wal-mart's management and its authorities have always given special importance to the demands and wishes of the customers. Since, the development and inception of the Wal-mart the authorities are continuously involved in the implementation of the strategies which could provide superior customer value and which could satisfy the customer's needs, demands and wishes.

At its core, Wal-Mart is a place where prices are low and value and customer service are high every day. Because Wal-Mart carefully controls expenses to maintain its low price structure, customers do not have to wait for a sale to realize savings. Backing the hometown flavor of a Wal-Mart store is the industry's most efficient and sophisticated distribution system. The system allows each store to customize the merchandise assortment to match the community's needs. Sam Walton believed that each Wal-Mart store should reflect the values of its customers and supports the vision they hold for their community. As a result, Wal-Mart's community outreach programs are steered by local associates who grew up in the area and understand its needs. In addition, Wal-Mart Stores, Inc., has launched several national efforts to help the larger, U.S. community."

The management of the Wal-Mart's organization has always looked forward to increase their profitability. The authorities have realized the fact that the profitability can increase only if the customers will be highly valued. The authorities have adopted strategies, which could help them in optimizing communications and simultaneously deliver superior customer value. After the inception of the Wal-Mart it has been noted that various strategies have been evolved from time to time, the organizational authorities have adopted measures and strategies which could optimize communications and which could deliver superior customer value. Due to the implementation and adaptation of these strategies "Wal-Mart now has 3,400 stores on four continents. "Our priorities are that we want to dominate North America first, then South America, and then Asia and then Europe," Wal-Mart's President and CEO David Glass told USA Today business reporter Lorrie Grant recently."

The expansion of the business of Wal-Mart depends on the strategies and methodologies, which have been adopted by the organizational authorities. The management authorities of the Wal-mart have always kept into consideration the demands and wishes of the customer. Wal-mart provides the customers with a peaceful and enjoyable shopping environment. The analysis of the profitability of the organization relates to the fact that the strategies that profitability is directly linked with the strategies which are applied by the organizational authorities. Wal-mart has always implied strategies, which could provide the customers with quality merchandise at low prices. The organizational authorities give special consideration and importance to the growth of the business by strengthen the customer values and by respecting their demands and wishes in all aspects.


No company is a true monopoly, meaning that if consumers are purchasing a product/service, then they have options from where to buy and from whom. Value proposition relates to the core question, why buy from a one firm vs. another? What unique value does a company bring to the consumer? A value proposition is an added benefit brought by a company that justifies price and positioning - convenience, prestige, peace of mind, etc. Each identified value proposition needs to be conveyed through the many communication outlets to the consumer" html

The value proposition and the strategies of the Wal-Mart's organizational authorities states the fact that their entire concentration and importance is given to the customers and the relative factors which could keep the customers contended and satisfied. The authorities know the relative importance of the demands and wishes of the people therefore; they give immense value to satisfy the customers because they are the ultimate source of income for the organization. The authorities of the organization believes on the fact that "There are really only two types of customers: those who know and love you, and those who never heard of you. All businesses spend relative fortunes trying to get new customers and that will always remain important. But don't spend the entire fortune on just attracting new customers. Spend some of those dollars keeping in touch with existing customers because you want to keep them. One of the goals in growing your business should be that the same person you sold to today will still be spending money with you ten years from now. So don't celebrate the close of a sale. Celebrate the beginning of a long relationship. People want to do business with people who appreciate them and look out for them"

To the organizational authorities of the Wal-Mart the customers and their relative demands are the most important point of consideration. They have developed strategies based on focus marketing in which the demands and wishes of the ultimate consumers are analyzed and implemented upon. Wal-mart and its authorities believe on the truth that in this competitive world of business and industry, the organizations should adapt new and inventive measures, which could prove beneficial and profitable. The management authorities have optimized communication system in order to deliver superior customer values. Because they know that only through the optimization of communication system, the customers will know the products and the services which the organization have to offer to their customers.


The Organizational responses and outcomes are regularly checked and visualized by the authorities in order to know the relative position of the business and the ultimate demands of the consumers. The strategies of Wal-Mart's organization are based on the following concepts:

Customers demands friendly shopping environment

Low prices of the products

Quality Merchandise for the customers

Review of Marketing Strategies

The strategies and methodologies of the Wal-mart's organization are based on the above concepts. The goal of the Wal-Mart is to keep the customer happy and satisfied. The delivery of superior customer value is also an aspect, which the organizational authorities have to fulfill, and for this purpose they have hired professional individuals who have broad vision and insight of developing suitable and advantageous strategies to satisfy the customer's demands and wishes.

The surveys and researches declares the fact that the customers of Wal-Mart area satisfied by the services which the Wal-Mart has been offering to them since its inception, the feedback which the authorities and management of Wal-mart receives are of immense satisfaction for the authorities because through these feed backs the authorities are encouraged to develop further strategies for the delivery of superior customer values.


Sam Walton, the founder of Wal-Mart owned variety stores. As Sam Walton expanded he began to experiment with large variety stores,…

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