walmart

It is actually quite the opposite, Wal-Mart’s supply chain is very customer focused, which is what gives them an advantage over their competitors. Wal-Mart focus’s on the customer and employs a pull strategy, where the demand from customers is the basis for production for Wal-Mart suppliers. This gives them a unique production method, in that they do not produce based on traditional methods rather it is based on short-term forecasts of demand generated by their customers. This allows them to not only keep stock costs low, it also allows them to track demand of individual products. This results in lowered costs of advertising and promoting products because they are able to accurately track demand and can adjust their advertising based on what is selling and what is not resulting in more accurate marketing efforts.

Following is an analysis of Wal-Mart's competitive strategy. Pricing Wal-Mart's marketing strategy was to guarantee "everyday low prices" as a way to attract customers. The traditional discount retailer, which relies on "sales," not only has to do more advertising and promotions but also has to rely more on catalog mailing, buildup of inventory before a sale, markdowns on the unsold inventory, etc. Wal-Mart stores operate according to their "Everyday Low Price" philosophy. Wal-Mart has emerged as the industry leader because it has been better at containing its costs, which has allowed it to pass on the savings to its customers.

In these marketing channels deeply discounted items are highlighted to the potential competitors and these items help lure the customers into the stores. The idea of having “quality for less” is a good marketing plan because it gets people into the store. It also offers a competitive advantage over the competitors because they can not financially match Wal-Mart prices. This is due to Wal-Mart having better use of financial resources, technology and physical resources. By censoring some products Wal-Mart are trying to market themselves as a company with good values.

The alternative norms are that Costco operations are entirely based on the warehouse model and membership fees offer customer more of an economic advantage to customers than Wal-Mart everyday low prices and flexible payment with suppliers. My objective is to analyze the two retail giants’ methodology to satisfy and maintain customer although that I anticipate Wal-Mart’s to be a better buy than Costco because of the gargantuan scale of Wal-Mart has constructed its commerce on saving the customer

Several economic trends beginning in the late 1980s helped WalMart to gain market share in the industry. The economic slowdown that lasted into the mid 1990s forced retailers to drop their prices to draw in customers. When the economy returned to prosperity in the late 1990s, this competition only increased. Companies such as Sears, Roebuck and Co. met this competition by restructuring and focusing more on their retail business. WalMart was now forced to compete with companies designed to better serve the consumer.

Wal-Mart is considered a variety store which focuses on low prices, and has been committed to upholding their basic value of customer service. Wal-Mart employs three basic beliefs which are respect for the individual, service to their customers, and striving for excellence (Hayden, 2002, p. 2). Wal-Mart’s corporate management strategy involves selling high quality and brand name products at the lowest price possible. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman.

No longer can they copy larger companies like Sears and J.C. Penny’s because of their size and scope. The fact is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. They are lurking not so quietly in the shadows, benefiting from Wal*Mart’s past choices, successes, and failures. They are there to blow the whistle if Wal*Mart steps outside the lines. Wal*Mart may be growing, but at a rate under 10% for the first time in years.

However, to obtain these low prices, Wal-Mart must cut expenses, which it does across the board, including the pay and benefits to its workers in the United States. Wal-Mart 's low prices have often saved consumers money at the counter when they purchase goods, as

This also creates a disincentive for consumers to shop elsewhere, because they forgo discounts or extra benefits by doing this. The firms therefore have more revenues and profits because of these loyal customers. Research has also shown that loyal custo... ... middle of paper ... ...M., & Backhaus, C. (2012). Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science, 40(5), 625-638.

Walmart is well known for its every-day low pricing (EDLP) model. Although EDLP seems as though it is a pricing model, it is mostly used to differentiate the retailer from others. Proof that EDLP isn 't always a pricing strategy lies in the fact that EDLP “does not have a lower price on all goods” (Lal & Rao, 1997, p. 97). This means that EDLP is a strategy for differentiating itself, not on always providing the lowest possible prices. “Walmart 's mission statement is “We save people money so they can live better” (Walmart, 2014) which indicates that Walmart 's pricing structure is the way it serves its customers.