Importance Of Walmart Pricing And Retail Strategy

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Pricing and Retail Strategy
Pricing and retail strategy is a key component of any business. These strategies play a major role in a customer’s perceptions of a business. Price is almost always a key factor. “Speak to any average consumer and mention the names of some high quality, leading businesses. The chances are high that one of the first words they will use is "expensive". Not "excellent service", "marvelous range" or even "helpful staff" (2006). Wal-Mart uses an everyday low price pricing strategy which has been a massive success for the company.
Wal-Mart operates different forms of retailers all over the world. They operate Wal-Mart US, Wal-Mart international and Sam’s Club. In 1962, company founder Sam Walton built his first Wal-Mart location in Rodgers, Arkansas (2004). Within 5 years, Wal-Mart had 18 stores with sales of $9 million. By 1970, Wal-Mart had 38 stores with sales of $44.2 million. In 2001, Wal-Mart topped the fortune 500 club, with annual revenue $219.8 billion. In 2014, Wal-Mart still toped the fortune 500 club with a revenue of $482.2 billion Wal-Mart operates internationally and has operations in the U.S, Canada, …show more content…

All in one motion, they eliminate a potentially competitive business, as well as gain valuable real estate and employees in their new market. They are able to build their popularity, while at the same time, keeping their outlets in the same area that the local consumers are already familiar with. As the stores begin to make money, the management then begins to reshape the store to look more like traditional Wal-Mart stores. It can then begin to grow outwards into newer and bigger stores in the market. Due to the size and wealth of the company, they are able to use this strategy extremely effectively. There aren’t many other competitors that can effectively implement this

In this essay, the author

  • Opines that pricing and retail strategy is a key component of any business, and that wal-mart uses an everyday low price pricing strategy.
  • Explains how wal-mart has been able to use their strategies to become one of the world's greatest success stories, which is proven by their massive growth and revenue.
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