ipl-logo

Walmart Push Strategy Case Study

1225 Words5 Pages

Segment 1 – Wal-Mart’s Revolutionary Power

1. How much was Wal-Mart’s sales figure quoted in the beginning of the segment?

Wal-Mart recorded $256 Billion in sales and is the first company in the world to record such a figure on sales.

2. How many Americans stream into Wal-Mart on a weekly basis?

One hundred million customers stream every week into Wal-Mart’s 3400 stores.

3. How does the Telxon unit help Wal-Mart better understand its customers’ buying behavior/patterns?

The Texlon unit is a device that helps to keep track of products. It can record the sale price, the number of available stock and as well as the history of a product. This information helps in forecasting sales and helps with future planning. All the information …show more content…

Thus, Wal-Mart can track all information about a product, which helps them stock the correct mix of products.

With this information, Wal-Mart can track specific items, on specific weeks, on specific days and even at specific times of the day. They can then track the spikes during the year at specific season periods all with the use of the Telxon Unit.

4. What are the differences between a push strategy and a pull strategy?

The push system – it is when manufacturers decide what they are going to produce and then try to get retailers to purchase it and sell it for them.

The pull systems – is when the retailers decide what is going to be sold. The retailers will collect data on what is being sold and then will tell manufacturers what to produce and when to produce it based on this information.

5. What is “Vendorville?”

Vendorville is a group of Wal-Mart vendors in satellite offices. The focus for Vendorville is what matters most to Wal-Mart: …show more content…

Segment 3 – The Strategy: Low Costs and Go Global

1. What are opening price points?

Opening price points are the lowest prices that Wal-Mart showcases in special displays. The opening price points is a foundation of who Wal-Mart is and how they interact with their customers. It is the heart of Wal-Mart pricing strategy.

2. What is the strategy associated with opening price points? How do they work, what is the goal of using this strategy?

Wal-Mart puts a lot of planning, organization, and thought into what their opening price points are going to be. The opening price points are based on the sales of the previous year and as well as customer requests. Every line of goods has an opening price point.

3. Is the strategy ethical?

The strategy that Wal-Mart administers is not ethical as the item that is on the opening price point is only there to lure you onto other products. These other products may not be better priced than Wal-Mart’s competitors.

4. How did Wal-Mart address its falling sales in profits in the early 1990s? What specifically did it

Show More
Related

Target's Corporate Fact Sheet

560 Words | 3 Pages

Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This

Read More

Is Walmart Good For America

283 Words | 2 Pages

“Is Wal-Mart Good For America?” affords viewers a thoughtful analysis into the dubious ethical methodologies employed by the Wal-Mart Corporation. Unquestionably, Wal-Mart is not infallible and their strict adherence to low prices has pushed other companies out of business. For example, Rubbermaid, as mentioned in the documentary, fell into Wal-Mart’s paradoxical low pricing trap and forfeited into a merger with a competitor.

Read More

Summary Of Is Walmart Good For America

1215 Words | 5 Pages

This seems like a smart marketing trick that is surely used in other retailers. And what really matters here is that the average American or even those who cannot afford buying things from regular superstores can actually enjoy shopping at Wal-Mart and buy just anything they need at preferential prices. This is the result of Asian-based imports where cutting costs helps Wal-Mart sell at the lowest prices possible thus being able to serve all classes of the

Read More

Economics Of Black Friday

1336 Words | 6 Pages

Black Friday is the Friday after Thanksgiving when retailers offer promotional sales. Some would say it’s the official start of the Christmas shopping season but does it help or hurt us economically? In the following paragraphs, I will summarize three articles I found relating Black Friday and its role in our economics to help answer that question. “What Are The Economics Behind The Black Friday Sales?”

Read More

Rhetorical Analysis Of Walmart

1637 Words | 7 Pages

Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.

Read More

Marketing Strategy: Trader Joe's Business Strategy

1120 Words | 5 Pages

For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.

Read More

Walmart Environmental Analysis

874 Words | 4 Pages

Wal-Mart is a powerful and influential grocery store in America and even in the world. It has a good reputation in terms of convenience, variety and good value for money. The greatest strengths of Wal-Mart are “the consumer understanding of low prices, their market clout, their competence in information technology, and their wide store and distribution network” (Internal Analysis of Wal-Mart 2015). The company has built good reputation among consumers during several decades’

Read More

Mcdonaldization In The Workplace

961 Words | 4 Pages

It is also efficient, calculated, predicted and controlled. A bit different from the McDonald, Walmart has divided into three parts,which are above store managers,in-store managers and in-store hourly

Read More

ALDI: Customer Relationship Management

1275 Words | 6 Pages

ALDI specializes on its own labeled products brand, creates high quality products with fair features, designs and packaging, ALDI also focuses on the variety of products that are mostly needed in each and every household, so ALDI does not only offer food but also offers electronic products, clothes, household goods, health and beauty products. By creating ALDI’s exclusive own brands, ALDI can minimize the costs on the products itself, therefore listing low prices for customers; Also ALDI is fortunate enough for its high purchasing power from suppliers, therefore ALDI can bargain the best prices so it can keep low costs and low prices; Another several ways ALDI is minimizing costs is for example: cart renting, as well as ALDI’s re-usable bags to reduce costs and insure low prices and saving for customers. ALDI took into consideration the importance of locating its stores in places convenient for people and also accessible, also taking into consideration public transportation links and parking spaces available, creating online channels for customers to locate their nearest ALDI store; Yet unlike other supermarket ALDI is not opened for 24H, ALDI’s opening hours are at the times where people are most likely to go shopping to minimize cost. As mentioned before prices aren’t something ALDI can compromise on and one of ALDI’s strategies is minimizing costs for competitive

Read More

Kmart Supply Chain Analysis

5718 Words | 23 Pages

Based on this model, Kmart can be evaluated using five forces as follows: 1. Threat of New Entrants: (Low Pressure) There are many hurdles for penetrating in supply chain

Read More

Compare And Contrast Costco Vs Walmart

1975 Words | 8 Pages

Walmart stores is one of the largest retailers not only in the United States but across the world. They hold tremendous power from a retail level and on a political level with governments in the US and outside. Ratios help create Walmart as a company and allows investors to be able to gauge and understand the metrics of the organization. These metrics and ratios help investors understand the specific direction of the company and the effectiveness of executive leadership. The primary ratio that must be understood regarding Walmart's earnings-per-share is the price earnings ratio.

Read More

Costco's Competitive Strategies

729 Words | 3 Pages

Specifically, Ralph’s (similar stores are Vons and Albertson’s) and Whole Foods (similar stores are Gelson’s and Trader Joes) are two firms that utilize cost leadership and differentiation. On one hand, we have Ralph’s using cost differentiation by providing a broad range of merchandise at a decent price. On the other hand, we have Whole Foods that has implemented a differentiation strategy by marketing their merchandise as healthier (organic). The trade of for both companies is that they are attracting less consumers by just marketing to a specific crowed. For instance, if Whole Foods had lowered their price and still sold premium merchandise, soon Ralph’s would be in trouble.

Read More

Walmart Human Resource Management Analysis

1275 Words | 6 Pages

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.

Read More

Situation Analysis Of Walmart

1009 Words | 5 Pages

I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).

Read More

Push And Pull Strategy In IKEA

1059 Words | 5 Pages

Exercise 3 Introduction Push and pull are strategic supply chain decisions can that are as a results of the impacts of operational, product and demand related variables (Wanker and Zinn, 2004). The push strategy moves products based on planning or forecasting whereas the pull strategy moves products as a results of real demand (Ballou, 1992). Thus in a push system, the products are pushed through the supply chain channel right from production to the retailer. The manufacturer builds its production based on historical ordering patterns and forecasting. Due to this it takes a longer time for this system to respond to changes in demand which results in overstocking, bottlenecks and bullwhip effect in the system.

Read More

More about Walmart Push Strategy Case Study

Related Topics

Open Document