Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Determinant of organisation culture
Determinant of organisation culture
Determinant of organisation culture
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Determinant of organisation culture
Wal Mart Stores Inc
Abstract
Explores the marketing strategies employed by Wal-Mart Corporation and their efforts to compete in the “new” economy.
Includes an assessment of Wal-Mart’s expressed and apparent positioning and value proposition based upon internal documents, public relations statements, web page and advertising.
Includes an assessment of Wal-Mart’s competitive position and strategy.
Includes an assessment of Wal-Mart’s marketing mix.
Introduction
The new economy, characterized by sophisticated technology, global communication and “knowledge as a commodity” demands a great deal from organizations that intend to remain competitive. Wal-Mart corporation does not just compete in their field, they dominate it.
Wal-Mart is the largest retail operation in the world today. According to the Wal-Mart corporate website at http://www.walmartstores.com, the company’s net sales totaled $191.329 billion for the fiscal year ending January 31, 2001. This makes Wal-Mart the fourth largest company in the United States of America. The size and consistent profit generation of Wal-Mart Corporation make it a logical choice for the study of marketing techniques employed by successful businesses.
Definitions
Marketing mix:
How much is spent and what percentage of marketing dollars go to advertising instead of other types of more highly targeted marketing communications. (Hill and Rifkin, 1999)
New Economy:
The way that business is conducted, characterized by a dozen or so themes: a) knowledge as a commodity b) digitalization c)virtuality d) molecularization e) networking f) disintermediation g)hyper media h) innovation i) customer as product designer j) immediate, k) global and l) discordant. (Tapscott, 1997)
Organizational Culture:
A common perception held by the organization’s members; a system of shared meaning. (Robbins, 2001)
Discussion
Method
To assess an organization’s marketing strategies we look at three separate aspects of its approach to reaching the public. First, an examination of the company’s expressed or apparent position and value proposition are studied. This is accomplished using various documents, including, but not limited to internal documents, public relations statements, web pages and advertising.
Next, a study of the company’s competitive position and strategy is conducted. This includes the dimensions of the...
... middle of paper ...
...905-4
Longo, D. (2001, October), ACNielson Unveils Wal-Mart Solution.
Retail Merchandiser 41 10, 10
Neff, J., (2001, August). Rivals shut out Wal-Mart. Advertising Age, 72 35, 8
Neff, J., (2001, October). Private party at Wal-Mart. Advertising Age, 72 44, 8
Petzinger, Jr., T. (1999). The new pioneers: The men and women who are transforming the workplace and the marketplace. New York: Simon and Schuster. ISBN 0-684-84636-5
Robbins, S. (2001). Organizational behavior. Upper Saddle River, NJ: Prentice Hall. ISBN 0-13-016680-4
Senge, P. (1994). The fifth discipline. New York. Currency Doubleday.
ISBN 0-385-260905-4
Sparks, D. (1994, December). Life after Sam. Financial World. 52-54.
References (continued)
Tapscott, D. (1997, November-December). Strategy in the new economy. Strategy & Leadership.
Treacy, M. (1995, September). Success through cannibalism. Marketing Magazine, 100. 17.
United States Securities and Exchange Commission (2001), Form 10-K/A, Washingtion
Wal-Mart Stores, Inc., Hoovers Business Resource, 2002 ed.
Wal-Mart Stores, Inc., Wal-Mart Stores Annual Report, 2000 ed.
Wal-Mart Stores, Inc., Wal-Mart Stores Annual Report, 2001 ed.
A prior market firm used by Wal-mart (GSD&M) warned Wal-mart of the public image issues they were facing and had not addressed, even though they had been advised of them for over two years. GSD&M wrote in one review to the company that “sadly, after two years of empty rhetoric and ineffective publicity stunts, we now know that Wal-Mart has not only needlessly hurt its Associates and their families, but has pointlessly hurt the image and success that Sam Walton built.” (wakeupWalMart.com, 2007). Wal-mart has acted in a manner that blends with the theory of egoism. This theory “sets as its goal the benefit, pleasure, or greatest good of the oneself alone.” (wofford.edu, 1997). “Egoist use personal advantage…as the standard for measuring an action’s rightness.” (Shaw, 2008, p. 45). Clearly Wal-mart today is acting with interests geared toward their personal advantage and not considering the wreckage it is leaving all around them.
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 has been a huge debate subject in the news since it began to pop up in large quantities across the entire United States. The majority of that conversation focused on the negative impacts that Wal-Mart has on the communities and economies in which its super stores are located. Richard Vedder and Wendell Cox take a different approach and while they recognizes the downfalls and negative impacts that Wal-Mart can have, he focuses more on proving that the positives that Wal-Mart has on economies and communities outweigh those negatives.
The top two reasons for such success in ranking first in retail store market, is because Wal-Mart is convenient globally and so are there prices in the competitive market . Wal-Mart has three segments which are superstores, discount stores, and Sam's Club stores, all of these are scattered in the United States, Canada, Mexico, Europe, Brazil, and Asia. One downfall was from Sam's club because too many were opening all over internationally it decreased the number of customers per location. Overall despite the company's decline on Sam's club sales, the Corporations did well over all with the figures brought in and conditions.
Wal-Mart is one of the world's greatest assets to most people. It provides consumer's a place they can go to virtually get anything they need from, car repairs, to groceries, prescription's, even the latest toys and electronics. With all that said, this paper relates to the different forces in business that affects business: competitive, economic, political + legal + regulatory, technological, cultural + social, demographic, and natural forces. Although there are technically seven we are going to focus on competitive, political, technological, and natural forces.
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.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
Today Wal-Mart servers around 130 Million people world wide and it has employees over 1.3 million people across the globe. They have been increase in growth of sales over 11% which amounted $6.4 billion US dollars. The earnings of the Wal-Mart are far ahead of its French competitors Carrefour although it is having its branches in 32 countries it earning and saving far behind. With wide range of suppliers the Wal-Mart has it has been one of the successful retail chains in the world today.
With its headquarters in Bentonville, Arkansas, Wal-Mart was commissioned in the hands of its founder Sam Walton. Generally, the Wal-Mart effect is structured in a manner that it aids economic experts to evaluate attached global and local economic effects to the famous Wal-Mart retail. The term Wal-Mart effect is often employed by analysts to refer to the wide variety of both negative and positive influences of the retail business (Hiltzik 1). Evaluation of the retail’s effects is significant as the business is not only a key figure is the world’s economy but also it is arguably the most performing private economic retail. Briefly, Wal-Mart has conventionally caught the eyes of consumers since it not only boosts their experience by suburbanizing local shopping but also it avails low commodity prices for necessities (Neumark, Junfu, and Stephen 406).
Etzel, Michael J., Stanton, Bruce J., Stanton, William J. (2004). Marketing. (13th ed.). Boston: McGraw-Hill.
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.
Armstrong G. & Kotler P. (2007) Marketing: An Introduction 8E Upper Saddle River, NJ Pearson Prentice Hall Publishers
The gross profit during the year 2015 was actually a $10 billion increase from their fiscal year 2014 (University of San Francisco, 2015). Over the past six years, Walmart continues to generate these types of numbers, representing increases in growth, time and time again. The company’s income was generated by more than 4,500 stores in the United States alone which is supported by a supply chain that moved from number 14 to number 13 on research and analyst company Gartner’s annual ranking (University of San Francisco, 2015). Many business professionals have analyzed and interpreted Walmart’s supply chain management approaches, making it apparent which elements of their strategy have proven effective. These major supply chain components that have shaped Walmart’s success over recent years are their buyer bargaining power (one of Porter’s Five Forces), focus on the overall customer experience, and investments in emerging technologies along with the implementation of these technologies in their business