Incorporation Successes of Wal-Mart Stores

The Wal-Mart Stores Incorporation

The Wal-Mart Stores Incorporation is a retail company that operates multiple grocery stores and hypermarkets. It was founded in 1962 and established in 1969. The two Walton brothers are the organization's founders (Bhasin, 2017). The company is headquartered in Bentonville, Arkansas, and has branches in practically every nation on earth. The company operated over 11,500 outlets in over 25 countries as of December 2016. Only in America are 4,300 stores. This firm is a great example of a company that has achieved its aims and met its mission and vision. "Saving people money so they can live better" is Wal-stated Mart's mission. The vision states that "To be the best retailer in the hearts and minds of consumers and employees." (Bhasin, 2017). Wal-Mart is an organization that believes in cost leadership. When people shop for less and save some cash, the live better lives.

Strategies Used by Wal-Mart

Some of the strategies that the organization uses to achieve set goals include setting up large-scale operations to enhance high sales across the globe. The firm also set relatively lower prices for their goods compared to other organizations (Ferguson, 2017). The firm attracts a large number of consumers since it offers services that are efficient and is much concerned about convenience. The firm has introduced electronic commerce in its business operations. There are two e-commerce sites namely Walmart.com and Jet.com. Marc Lore manages these sites, an entrepreneur appointed in 2016 to lead the U.S. e-commerce services (Smithson, 2017). This operation allows the firm's customers to be able to conduct their commercial transactions electronically. The transactions include buying goods and tender supply to the corporation. It sets up a competitive market platform between Wal-Mart and other popular companies such as Amazon. It also contributes to brand exposure by the use of online stores that reach a high number of customers. It also enhances convenience since customers can pay electronically and the goods are delivered at their doorstep.

Everyday Low Price (EDLP) Strategy

Everyday low price (EDLP) is a strategy that Wal-Mart enacted to attract more customers and boost the number of sales in a day. This approach promise customers low prices eliminating the need of comparison-shopping. It generates consumers' loyalty towards the firm. It also matches to the firm's mission of reducing people's expenditure and better their lives. "However, the large sales volume enables Wal-Mart to generate profits. Thus, in the marketing mix, the pricing component is the main contributor to Wal-Mart's competitiveness" (Ferguson, 2017). These discounts attract more customers and increase sales of the specific goods on offer. Winning consumers' loyalty boosts the need to expand the stores and reach more customers.

Marketing Communications Mix and Globalization

The firm uses marketing communications mix to advertise goods to many people. This method involves the use of advertisements in the media, sales promotions, and public relations. Special deals in their stores are advertised through websites and newspapers. "Personal selling happens at Wal-Mart stores, where sales personnel persuade customers to try new products or package deals. Regarding public relations, the company uses press releases to inform customers and investors about policies, programs, and strategies" (Ferguson, 2017). The organization sponsors charity activities to portray their concern for better living conditions and attract customers. The firm has set a goal to set up stores in all countries and globalize the online marketing through the strengths, weaknesses, opportunities, and threats (SWOT) analysis technique. Currently, Wal-Mart remains to be the most substantial revenue generating company with approximately $479 billion and has more than 2.2 million employees.

Challenges Faced by Wal-Mart

However, Wal-Mart, just like any other firm faces challenges. Online shopping is taking a new channel where small sellers bypass the organization and use their websites for marketing. "Because of the Internet, small sellers or individuals can bypass Wal-Mart and use their own websites to sell products to online consumers" (Smithson, 2017). It decreases the profit and market share of the firm. In addition, other businesses have come up with the same business plan to compete and grab the electronic commerce platform. Wal-Mart serves as an excellent example in conveying the importance of having a mission and goals in strategic management.

References

Bhasin, H. (2017). Marketing Strategy of Wal-Mart - Wal-Mart Marketing Strategy. Marketing91. Retrieved 07 October 2017, from http://www.marketing91.com/marketing-strategy-walmart/.

Ferguson, E. (2017). Wal-Mart’s Marketing Mix (4Ps) Analysis & Recommendations - Panmore Institute. Panmore Institute. Retrieved 07 October 2017, from http://panmore.com/walmart-marketing-mix-4ps-analysis-recommendations.

Smithson, N. (2017). Wal-Mart SWOT Analysis & Recommendations - Panmore Institute. Panmore Institute. Retrieved 07 October 2017, from http://panmore.com/walmart-swot-analysis-recommendations-case-study.