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This strategy has led to Wal-Mart concentrating on a core 16% of its customer base, the price-value shopper, who generates a disproportionately high level of sales for the company. The generic strategy has solidified this market for the company.
The branding strategy that includes name designers and celebrities including Jaclyn Smith clothing is a branching out strategy that seeks to expand on the price leadership the company has created (Duff, 2009). This strategy is working only in a smaller audience of the total price value segment however.
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Wal-Mart dominates the retail industry given their exceptional skill in supply chain management and logistics. This ability is what propels them into being able to handle selling on price and value, which has attracted a core 16% of their customer base who relies on the retailer to help...
The approach of using brands incrementally to brand out of this price/value strategy is not as effective as it could be however (White, 2010). What Wal-Mart needs to do is consider smaller, more segment-specific stores that vary retailing merchandise for a given demographic segment to ensure they stay relevant for the long-term in existing and new markets. Today the superstore concept in the U.S. is getting saturated by competitors. Wal-Mart needs to break out of that model of retailing and vary their retail lines in order to grow their business.
References
Duff, M.. (2009). Buffet of Brands. License! Global, 12(9), 30-31.
Mottner, S., & Smith, S.. (2009). Wal-Mart: Supplier performance and market power. Journal of Business Research, 62(5), 535.
White, E.. (2010). Retail to the Rescue. Risk Management, 57(5), 21-23.
Wal-Mart Operations Wal-Mart's has grown to be one of the most powerful organizations in the world and its biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). Although Wal-Mart does not produce many goods internally, it
At that point, the competitive advantages of the American retailers would shine through. U.S. companies that lack these competitive advantages would see no benefit from entering the Mexican market, regardless of NAFTA. 3. Comerci's main move to remain competitive was to try and match Wal-Mart's buying power. It tied with another competitor to form a buying group, in the hopes that it can lower its cost of goods sold to
Wal-Mart and Employee Rights Labor cost is always considered as the main issue, mostly in case of employees' unionization at Wal-Mart. This was noticed when Wal-Mart showed a remarkable earning at the rate of 44% per annum for its labor working on hourly basis. Another point which brought this issue ahead was when the sales clerk of Wal-Mart in 2001 earned wages below Federal Poverty Scale. According to an issue of
However (on the plus side toward Wal-Mart's capacity for increased successful globalization) there remains Wal-Mart's sophisticated supply technology, the best in the retail world, a tool that makes it possible for the retailing giant to meet individual store and customer needs everywhere, almost instantaneously. Ernsberger (2002) points out that: one reason the company is so productive is that it knows how to use technology... Wal-Mart was the first major retailer to
Wal Mart is a global leader in retail supply chain management, logistics, operations, fulfillment and transportation services. The efficiency and profitability of the WalMart supply chain operations globally have set a new standard in their industry and often been used as the basis of comparing performance of supply chains in related industries as well (Stevenson, 2009). What has contributed to the rapid growth of WalMart however has been the acquired
Robson Walton - Chairman of the Board of Directors of Wal-Mart Stores, Inc. Stephen P. Whaley - Senior Vice President and Controller Eric S. Zorn - Executive Vice President and President, Wal-Mart Realty III. INTERNAL ENVIRONMENT: STRENGHTS and WEAKNESSES A. CORPORATE STRUCTURE Wal-Mart's retail division is formed from four major subsidiaries: Wal-Mart Discount Stores, Wal-Mart Supercenters, Wal-Mart Neighborhood Markets and Sam's Clubs. (Wal-Mart Facts, 2007) Wal-Mart Discount Stores more than 1,000 in U.S. alone average