Investors in Wal-Mart were aware of the obstacles that the giant retailer would face due to the changing consumer preferences and behaviors. However, the financial reports showcased that its online strategy was successful. At the end of the second quarter in 2017, Wal-Mart reported revenue of $123.4 billion, which was an increment of about 2.1% over the previous year quarter. There was also an increase in comparable sales by 1.8% year over year. Wal-Mart has significantly focused on structuring its online sales, while using its already well-established brick and mortar stores and excellent supply chain and logistics to its big advantage.
Problem one implementation plan They order products through their smartphones, and then they deliver them. Customers are able to scan QR codes to see what the daily special is. And they can even use the app to vote on what they would like the special to be tomorrow. Because of Walmart's vast global supply chain, the company is able to give these customers access to valuable products at great prices – like imported milk and juice. For the customer, digital technologies can integrate online and off-line sales channels and drive a seamless shopping experience.
I would like to add that some of tWalmart’s strengths are brand recognition and convenience. Walmart “has grown over the last 50 years into the largest retailer in the world” (Walmart). Their stores have become well-known, widely accessible and have also evolved as a one-stop shop. Aside from household items, they also carry sports goods, electronics, and automotive needs. Moreover, one of Costco’s strengths would be high employee satisfaction.
1.1.1. STRENGTHS 22.214.171.124. Scale of operations Wal-Mart is one of largest retail company in the world. With more than $400 billion revenue and more than 10.000 stores, it exercises great buyer power on suppliers to reduce prices (Laura Barbera Marcilla, 2014). Also, its size allows the company to advantage from economic of scale, which in time conduce to a lower price of products for the final consumer.
is a leading American company that operates retail stores that transact in groceries, discount warehousing and general merchandise. The company continues to expand its range of products and services to include fashion clothing, online prescription drugs, health clinics, entertainment and even financial services. The company is a major global leader in retail and service delivery of solutions with the main aim being creating value for customers. With the product line of the larger Wal-Mart group and subsidiary companies, the organization’s main goal is devotion to providing the most persuasive offer to customers in order to gain their lifetime loyalty (Walmart,
The Macy’s day parade has been engrained into our culture as it has been a tradition for almost a decade now. Macy’s also developed a brand of selling higher quality products, and a culture of community involvement. Their strong online present is an advantage as they made it simpler for consumers to shop through all their products without having to leave their home. Macy’s understood how important it is for their growth in the online market as they offer in-store pickups at any of their 728 stores in the United States, simplifying and expediting the online process for consumers. Macy’s is parent company of Bloomingdale’s since 1949.
Walmart in collaboration with P&G built an automated re-ordering system which is linked to the PCs in P&G and it would send the inventory to Walmart's distribution center or directly to the stores. ERP (Enterprise Resource Planning) is an integrated part of Walmart and it connects internal and external resources. It has helped reduce supply chain inaccuracies. Using ERP, it can easily fulfill the basic steps of SCM - Procurement, manufacturing, distribution, retailing and finally reaching the end customer. Walmart was the first retail company to use Hub and Spoke System.
(Lawler, E. E. (2014) The company’s goal is to achieve a high position in the retail industry with its known vision statement “To be the best in the hearts and minds of consumers and employees”. One of the strategic objectives of Wal-Mart were to keep the cost of the product low, and spending on other areas of the business. Another strategic objective of Walmart is to attain economies of scale to support the cost-leadership. “U.S. Department of Commerce (2017).
Walmart is present in over 27 counties and was regarded as one of the three largest corporations in the world according to the 2012 edition of Business magazine. Moreover in the same year it was featured in being one of the 25 global retail brands. After becoming the part of Wal-Mart Asda has seen gradual increase in its sales making it the second biggest retailer in the UK. Succeeding the acquisition, Asda started converting all its stores to Wal-marts supermarket format and introduced “Price Rollback”. These low pricing strategies lead to Asda having success and positive outcomes as a result.
Vision, Mission Statement "Price Leadership Drives Global Performance" is the Wal-Mart visualization statement. The management of Wal-Mart emphasises on price leadership in every market since pricing strategy is the direct approach to reach performance and attract customers. In order to implement price leadership, they stated "Save Money, Live Better", which remains as relevant now as it was in 1962 by Sam Walton. The mission is that everybody is able to purchase products in Wal-Mart because the stores offers low price products to them. On the other hand, with affection to internal customers, employees and management should reduce cost, and achieve economies of scale, as well as help people who need
This market need to understand that the future consumer behaviors are towards a faster, convenient and on the go shopping. Department stores may start offering its customers not only a get and pay transaction, but offer them an experience of an ideal purchase environment and creating a new way to see its brand loyalty to differentiate from its greatest rival, the e-commerce. For instance, Target is offering its REDcard for clients to see more value and more benefits when they purchase at their stores. By doing this, they are increasing its customers witch of cost. Others are offering price comparison apps, so customers can access to the store prices and their competitors to show them the best deals.
By focusing on having numerous locations for accessibility and assessing customers’ needs, Wal-Mart has been able to sustain a competitive advantage in the industry. The company leverages its massive size to exert high purchasing power over its suppliers and, therefore, it can obtain significant cost savings and pass them down to consumers with heavily discounted prices. (Britanny Carter) They also offer a large variety of products, including national, local, and private brands, giving extended choices to their customers. Competencies: Walmart’s ability in procurement is very strong. Keeping prices low, and even matching competitors’ prices are ways that helped them become the common choice retailer for any ordinary households.