Wall-Mart’s winning strategy in the LIST. Was based on selling branded products at low cost, which enables the lower class and middle class consumers to shop for products and save. Due to the advances in technology over the years Wall-Mart has been able to achieve tremendous success. Wall- Mart’s success has allowed the company to expand out of the united States.
About OIC million customers visit a Wall-Mart store somewhere in the world. Wall- Mart’s marketing strategy was to guarantee “everyday low prices” as a way to pull in customers. Traditional retailers relied on advertised “sales. ” The company employed more than 1. 3 million associates worldwide through more than 3,200 stores in the United States. Wall-Mart was named number one on the Fortune 500 list and was presented with the Ron Brown Award for Corporate Leadership, a presidential award that recognized companies for outstanding achievement in employer and community relations.
Wall-Mart enjoyed a 50 percent market share position in the discount retail industry. Procter & Gamble, Colors, and Johnson & Johnson were among its nearly 3,000 suppliers. Though Wall-Mart may have been the top customer for consumer product manufacturers, it deliberately ensured it did not become too dependent on any one suppler: no single vendor constituted more than 4 percent of its overall purchase volume, Further, Wall-Mart had persuaded its suppliers to have electronic “hook-ups” with its stores. About 85 percent to all the merchandise old by Wall-Mart was shipped through its distribution system to its stores.
Wall- Mart used a “saturation” strategy for store expansion. The standard was to be able to drive from a distribution center to a store within a day. A distribution center was strategically placed so that it could eventually serve 150 – 200 Wall- Mart stores within a day. Stores were built as far away as possible but still within a day’s drive of the distribution center: the area then was filled back for saturated back to the distribution center. Each distribution center operated 24 hours a day sing laser-guided conveyor belts and cross-docking techniques that received goods on one side while simultaneously filling Orders on the Other.
The company owned a fleet of more than 3,000 trucks and 12, 000 trailers. (Most competitors outsourced trucking. ) Wall-Mart had implemented a satellite net’,fork system that allowed information to be shared between the company’s wide nonvoter of stores, distribution centers, and suppliers. The system consolidated orders for goods, enabling the company to buy full truckload quantities without incurring the inventory costs. Wall-Mart’s strategy was to build large discount stores in mall rural By contrast, competitors such as Smart focused on large towns with populations greater than 50,000.
Wall-Marts utilizes the pulling strategy, pricing strategy, and product strategy is the promotional effort by the seller to stimulate final user demand, which then exerts pressure on the distribution channel. Wall-Marts Strategy is to provide everyday low prices and superior customer service. This aloof,s Wall-Mart to replenish the shelves 4 times faster than its competition. Wall-Mart’s ability to replenish their shelves four times faster than its competition is just another advantage they have over intention. Wall-Mart leverages its buying power through purchasing in bulks and distributing the goods on its own.
Wall-Mart guarantees everyday low prices and considers them the one stop shop. Wall. Mart has taken their mind and cash over the last 20 years to become the world’s largest retailer. Wall- Mart’s low prices have caused many competitors to lower their prices in turn reducing income, Wall-Mart has become a major global retailer, they have closely examined and utilized tactics to profit from their many stores. One great tactic is starting free-trade-zone distribution centers, in turn, saving almost $500,000 annually.
Another tactic includes their service from when you walk in the store to when you leave, Wall-Mart’s winning tactic is their bread and butter is again the technology they utilize. They can track how much of one item has been sold on any given day, and if not a hot commodity at one store, they will ship it out to another where it is being sold much faster.
