One of the many challenges that marketing managers can face is a form of a company mid-life crisis. Just as people do companies may find that after a certain amount of time, success and growth that they need to reevaluation their priorities and goals. Wal-Mart provides an example of a company mid-life crisis, as its growth after 2005 dropped to 2% and faced a growing set of major competitors. Just a people can turn a mid-life crisis into a positive midlife transition, Wal-Mart can potentially use holistic marketing to successfully adapt to a competitive and dynamic economic environment.
Just as in a person’s mid-life crisis, Wal-Mart has several symptoms which may be attributed to a mid-life crisis. As an example, Wal-Mart has experienced a recent decline in growth, down to a mere 2% for the years after 2005 to 2007, similar to a person’s declining health and productivity as they age (Doheny, 2009, p. 2). Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler & Keller, 1 - Defining Marketing for the 21st Century, 2014, p. 4). Marketing is much more than just selling a product, and keeping and growing the number of customers is an integral part of a successful marketing strategy (Kotler & Keller, Marketing Management, 2012, p. 4).
Another symptom of Wal-Mart’s mid-life crisis is a healthy growth amongst its competitor’s, similar to a person’s change in social relationships (Doheny, 2009, p. 2). Wal-Mart is experiencing declining demand as compared to its competitors (Kotler & Keller, 1 - Defining Marketing for the 21st Century, 2014, p. 7). Declining demand, consumers choosing to buy the...
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...mpetitive and dynamic economic environment in a way that allows it to gain an edge on its competition, now and in the future.
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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).
Kotler, P., Keller, K.L. (2012). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Wal-Mart provides low prices for people to afford more of these great products and to stretch their dollar more. Wal-Mart opens their stores in rural areas that are destitute. These people don’t have the ability to buy the latest and finest products around. That lifestyle of buying and getting the modern item is foreign to them. Thanks to Wal-Mart these people are able to grasp this lifestyle and experience for themselves (Coster 1). People are saving hundreds of dollars and these savings really add up. According to a study by the New England Consulting group, U.S. consumers save $100 billion annually, or $600 for the average America family (Maich 6). These savings for consumers and families are astounding. This data is not only about those who shop at Wal-Mart but this data is about all consumers. This is so because “Wal-Mart sells for less, it forces competitors to cut prices in order to compete” (Maich 6). A s...
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.
Many large retailers such as Target and Nordstrom did not do well during the recessionary economy. Many of those large retailers had to shut some of their stores down due to low sales during the recessionary economy. During a slow economy the Wal-Mart Incorporation did great. Wal-Mart Inc. did great during the recessionary economy was due to Wal-Mart’s everyday low cost marketing strategy (Ferrell, Hirt, & Ferrell, 2009). The working class consumers are Wal-Mart Inc.’s primary target market clientele. As a result of the recessionary economy, Wal-Mart gained the competitive edge over its competitors and caused their upper class consumers to begin shopping at Wal-Mart Inc. (Collins, 2011).
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When Sam Walton died in 1992, some industry insiders doubted that the Wal – Mart chain that he had founded some 30 years earlier would retain its prominence as a discount retailer. Lost for good they feared, would be the “magic spark” that Walton used to light fires under the chain’s 1.3 million associates. And, as Wal – Mart stock failed to enjoy the same bull – market growth as many other companies in the mid – 1990s, the pundits appeared to be correct. Today, however, with stores in all 50 U.S. states and nine other countries, Wal – mart has rebounded, leading the pack of discount stores with record earnings. In fact, with $218 billion in annual sales and 100 million customers per week, Wal – Mart is the world’s largest retailer and was named “Retailer of the Century” by Discount Store News.
Kotler, P., & Keller, K. (2012). A Framework for Marketing Management (Fifth ed.). Harlow: Pearson Education Limited.
Philip Kotler; Kevin Lane Keller (2009): “Marketing Management”, 13th edition, Pearson Prentice Hall, pg 61-62