STRATEGIC MARKETING

Wal-Mart

Walmart

Background

Wal-Mart is the largest retailer of the world. In fact, it can be said that it is the largest corporation on the planet. In the year the annual sales of the Wal-Mart exceeded a staggering $200 billion, and at that time analyst predicted that this figure will rise to $700 billion in the year 2010. The company was first founded by Sam Walton in the year 1962, and incorporated in the year, 1969. The basic reason behind the success story of Wal-Mart in the United States of America was the philosophy of “consumerism” which prevails in the United States as people here buy things in a bulk quantity (Nelson, 2006). Wal-Mart Company is said to operate in the form of retail stores in different formats worldwide. In USA, the retail formats implemented by the company include supercenters, Sam's Clubs, nearby markets, and discount stores. At a worldwide level, the company has operations in El Salvador, Chile, Canada, Argentina, Brazil, China, Guatemala, Japan, Honduras, Costa Rica, Puerto Rico, Mexico along with India, Nicaragua, as well as the UK. The company's headquarter is located in Bentonville, Arkansas. As of today, the company employs nearly 2.1 million people. Wal-Mart's mission is “Always low prices” and the company is one of the chains that have survived the economic downturn through effective supply chain and focus on cost leadership (Marketingteacher.com, 2011).

Internal Analysis

It is a famous brand that has added to its brand equity, the value proposition is strong, and customers hold the perception of low prices with respect to Wal-Mart. This perception building was the main aim of the company, and it has achieved it gradually. The value chain activities that the company is good at is the inventory management system via the RFID technology that virtually alert sthe suppliers of the demand and then the demand is filled on that particular day. The human resource management and the Inventory management system is what makes them have a competitive advantage over the others.

Strengths

It is a strong brand which provides services worth the money invested, affordability, convenience, and a wide variety in a single store. The company is competent in the utilizing technology to aid its worldwide logistics system, for instance it oversees the performance of individual products country wise at a glance through effective information management system (Basker, 2007). The company uses a strategic focus strategy for human resource development which is a major strength of Wal-Mart. People are a crucial component to the business of Wal-Mart's and Walmart invests time as well as money in training retaining and developing them. It has developed in terms of global expansion which is a vital component of the value proposition and brand equity. The company is effective in its supply chain management through strategic partnerships which no other store has achieved yet.

Weaknesses

Since it sells clothing, stationary, food and many other product lines it might lack flexibility like its competitors. It is the world's largest retailer but technology advanacements may result in weak in areas mainly because ...