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
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.
Wal-Mart Inc has done a great job at bringing together what is local to the area and what isn’t and bringing to many small towns. So when a Wal-Mart stands up, it isn’t just Wal-Mart Inc who benefit, but the community.
When Wal-Mart establishes itself in a town, it makes its competitors to close their businesses since they cannot compete in the current market. There are several businesses that go out of business when this company sets up a branch in the town. However people don’t agree with this since customers are the ones who go to purchase goods from Wal-Mart. If there are people who should be blamed are the customers since they flock into the retail market to buy from them. This is the reason why these retail businesses are out of business. The reason that makes customers go to shop at Wal-Mart is that, there is ample parking, low prices and they also provide superior goods and services to the customers.Down town destruction started earlier before Wal-Mart was established. Wal-Mart is trying to bring with it new technologies that are aimed to cope with the current technologies. We ought to find new ways of doing things and this is exactly what is happening with Wal-Mart. For instance, Wal-Mart might be embracing technology to supplant it. Internet shopping might be some of the new business technologies that they are trying to embrace.
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.
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.
Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.
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.
Walmart can give businesses success over night if they comply with all Walmart’s requests. Walmart does not care what the suppliers say or want, suppliers can only follow the Walmart rules. While they can also drop companies in seconds which have a huge impact on businesses. Rubbermaid can serve as an example of how much Walmart have control over their suppliers. The Rubbermaid company was almost put out of business because their prices were too high for walmart. Walmart does not endorse the economy, but instead they only care about whatever they can make the most profits with.
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’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
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
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.