Friday, March 29, 2019
Development of a Retail Leader: Wal-Mart
Development of a Retail Leader Wal-MartOne of the cognise industries all eachplace the world is Wal-Mart. Wal-mart is considered as a sell heavyweight due to the telephoners successful logical argument over the years. With good do byment practices and ridiculous merchandise strategies, Wal-Mart was able to operate successfully not only in the United States but similarly in international market (Hayden et al, 2002). Wal-Mart Stores, Inc. was kickoff established and founded by Sam Walton at Rogers, Arkansas in 1962. The business growth of the retail salt away was momentous that indoors a drag of seventeen years in operation, Wal-Mart had already topped annual gross sales at unitary billion US dollars. By the end of January in 2002, Wal-Mart has been recognized as the largest retailer in the world a sales record of 218 billion US dollars. With this huge and continuous development, it is no curiosity the retail entrepot was able to operate at the spheric level. The global operation of Wal-Mart was marked by the establishment of its commencement ceremony international store in 1991 at Mexico City (Govindarajan Gupta, 2001).Through its international reach, an estimate of one hundred one million million customers atomic number 18 said to visit a Wal-Mart store found somewhere in the world. A total of 1.3 million associates ecumenic ar employed by the company and are distributed within its 3,200 stores in the United States as well at over a molarity other stores in Canada, Brazil, Mexico, Argentina, Puerto Rico, China, Ger to a greater extent, Korea and in the United Kingdom (Govindarajan Gupta, 2001).The retail stores of Wal-Mart are operated in different formats worldwide. In general, the business is divided into three chief(prenominal) segments Wal-Mart Stores, Sams golf-clubliness and International Stores. The Wal-Mart stores are further subdivided into Discount Stores, Supercenters and Neighbourhood Markets. Sams fraternity on the other hand, is a business segment that consists of membership storage warehouse clubs. According to the New York Stock Exchange (2005), Wal-Mart Stores operates about 1,478 Discount Stores, 1,471 Supercenters, 538 Sams Club and 64 Neighbourhood Markets within the United States as of January 31, 2004. In accession to this huge local operation, Wal-Mart and its international segment conducts retail operation within eight countries and Puerto Rico. Wal-Marts international segment is made into s invariablyal formats, which admit retail stores, restaurants, discount stores, Sams Club and Supercenters. Aside from these trading operations, Wal-Mart also owns a 37.8% unconsolidated minority interest in one of Japans retailers, The Seiyu, Ltd. (New York Stock Exchange, 2005).Strategic marketing forethought Techniques of WalmartWal-Mart dominates the American retailing perseverance due to number of factors like its business model which is soundless a mystery and its effectiveness in not letting the rivals let know about the weaknesses. Wal-Mart made strategic attempts in the its formulation to dominate the retail market where it has its presence, growth by expanding upon in the US and Internationally, create widespread name recognition and customer satisfaction in relation to brand name Wal-Mart and branching into raw(a) sectors of retailing.It is learnt that Wal-Mart strives on three generic strategies consisting of Focus Strategy, the Differentiation Strategy and boilersuit cost leadership.Managers strive with child(p) to mark their organizations unique, distinctive and identify tell success factors that will drive the customers to buy their products.Thus, firm specific resources and capabilities are crucial in explaining the firms performance. The Resource Based View (RBV) explains competitive heterogeneousness based on the premise that close competitors differ in their resources and capabilities in important and durable ways. The companys capability c an be found through and through and through its functionality, reliable performance, like Wal-Mart superior logistics. (Helfat, 2002)Wal-Mart has firm infrastructure, well equipped in human resource with management professionals and technologically too.Any organizations thrive hard to be successful for which it needs to have better resources and superior capabilities. Wal-Mart has toughened RBV with economically and financially very strong enough to stand s bowl in the time of crisis. Pereira states that dominating the retail market is its list strategy. Wal-Mart operates on wretched price strategy which is operated as every day low prices (EDLP) which builds trust among the customers.(Brunn, 2006)The strategy lies in purchasing the goods at lower prices and interchange the goods to customer at much lower prices, cutting the price as far as possible and change magnitude the profit by increasing the number of sales. This ferociously increases the competition in the market and Wa l-Mart competes with all its competitors till it is dominant it the market.Wal-Mart is expanding seriously and rapidly which is also its strategic goal. Wal-Mart employs over 1.3 associates, owns over 4000 stores out of which 3000 are in US and serves around 100 million customers weekly.Wal-Mart has acquired many international stores and merged with some super stores like ASDA in UK. Wal-Mart far flung net officiate of retail outlets has ensured that Wal-Mart interacts with and has impact on virtually every locality within US. (Helfat, 2002)The expanded strategy has led the hunger of Wal-Mart to many European Countries. It is learnt that three countries with no Wal-Mart stores became part of corporations international presence wherein the domestic help retail chains were taken over by Wal-Mart including 122 Woolco stores in Canada, 21 Wertkauf stores in Germany and 229 ASDA units in United Kingdom. The takeover strategy by Wal-Mart keeps the company at forefront when entering into the new market and the number of competitors is also minimized. The strategies have helped the Wal-Mart to rein in number one position in international countries making it the largest retailer in the world.It is seen that Wal-Mart has significantly the Porters five posture model wherein through proper strategic planning and strategic carrying out has led to removal of barrier entry, rivalry from competitors and pricing norms. In hear to substitutes, Wal-Mart in order to acquire its aim of customer satisfaction has merchandising goods under its own legal brand. Wal-Marts big box phenomenon has changed the retailing industry in the United States which is often considered as discount stores and makes profit through high volume of purchases and low markup on profits.(Parnell, 2008)Wal-Mart with its low cost and ever expanding strategy has made a dramatic impact since 1962 when Sam Walton first started his business. With this strategy, Wal-Mart has now over 4000 stores and outlets in US and other countries through encyclopaedism and mergers.Marketing Performance managementMarketing performance management (MPM) is a term used by marketing professionals to describe the analysis and procession of the efficiency and effectiveness of marketing. This is accomplished by focus on the coalescency of marketing activities, strategies, and metrics with business goals.2 It involves the creation of a metrics fabric to monitor marketing performance, and then develop and utilize marketing dashboards to manage marketing performance.3 This strategy is used by several companies such as IBM, Intel, and Citrix.345Performance management is one of the key processes applied to business operations such as manufacturing, logistics, and product development. The goals of performance management are to achieve key outcomes and objectives to optimize individual, group, or organizational performance. MPM however, is more specific. It focuses on measuring, managing, and analyzing marketing performance to maximize effectiveness and optimize the return of investment (ROI) of marketing.6 3 elements play a critical role in managing marketing performance-data, analytics, and metrics. shutdownWalmart has done a lot in the past in order to secure its position as a retail market leader. These include offering low prices, offering good customer service and everlasting innovation. However, lately the company has grappled with low customer traffic. Market saturation in the middle income market segment, poor international performance and bad populace relations as a result of their employee practices. The company should adopt the avocation strategies in order to ensure future growth adopt lancinating strategies international markets, introduce good product packages for products favored by tributary clients and improve health insurance plans within the company. These will go a long way in sustaining the companys positions as the USs retail leader.And as the petulance against Wal-Mart becomes more widespread, here and in foreign countries, Wal-Mart is going to have to work harder to maintain their good reputation.Wal-Marts foundation will become increasingly more important for giving things back to the community.In order for Wal-Mart to stay at the top of their game and follow the company strategy and achieve their key policy goals, they are going to have deal better with their stakeholders and make sure they guard their reputation well.