Wal-Mart Marketing
Uploaded by kspain on Oct 14, 2008
Wal-Mart Corporation
Wal-Mart was founded in 1962 by Sam Walton when he and his brother James Walton opened the first Wal-Mart Discount City in Rogers, Arkansas. Since then, Wal-Mart has grown to be the second largest company in the world (Wal-Mart Stores, n.d., p. 1). In the United States, the company includes Wal-Mart discount stores, Supercenters, Neighborhood Markets, and Sam’s Club warehouse membership clubs. The company also has many international operations. 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. Wal-Mart’s new slogan is “save money, live better” (Wal-Mart Stores, n.d., p. 1). According to the company’s website, “saving money is a means of helping our customers live better. By offering the best possible prices on the products our customers need, we can help them afford a little something extra” (Wal-Mart Stores, n.d., p. 1). For each strategy that Wal-Mart promotes in flyer ads or television commercials, they measure the return on investment from these promotional strategies. If a strategy does not have a return on investment of a certain percentage in sales, those strategies are revamped or discarded. Backward expansion strategy is another key to Wal-Mart’s success. Unlike other retail stores, Wal-Mart opens their stores in a small town first before entering into metropolitan areas. “Wal-Mart spreads out like molasses from its Arkansas base by constructing new stores strategically located near distribution hubs and smaller towns, rather than leapfrogging across the nation like the other retailers” (Harper, 2004, p. 2).
The driving force behind every Wal-Mart initiative is the continued growth and profitability of its operations. As Wal-Mart developed over the decades, it continually sought ways to become more efficient and for new avenues in which to pursue profitable growth. One of Wal-Mart’s competitive advantages is their remarkable logistics system. They are able to ship merchandise from any...