Wal-Mart is an American global retailing corporation offering low prices on the extensive assortment of products thus functioning as a chain of discount department’s stores, hypermarkets as well as grocery stores. It’s the most profitable and largest grocery retailer in the United States. The company’s vision is to emerge as the best retail market in both hearts of employees and consumers. Their mission is to improve individual’s living standards through saving their money; this is achieved through low prices on their sales enabling consumers to save money together with the wages earned by employees. Some of the countries they have stretched their operations include Japan, China and the United Kingdom.
Tactics used to expand the company
Wal-Mart has established intensive growth strategies which include market penetration, market development as well as product development. It utilizes the market development as its secondary growth intensive strategy. This approach involves entry of new markets to reach new consumers on top of the existing consumers. The retail company has opened new stores in various countries like United Kingdom to reach consumers in those markets in efforts to achieve their market development goals. Wal-Mart also utilizes market penetration as its main growth intensive strategy, and this involves making more sales and services to the current customers through offering promotions, discounts, and special package services. The other tactic is product development which is minimally utilized. Product development focuses on provision of new product to the market. However it does not invest much in the development of new products, but instead, it focuses on sales and marketing. Wal-Mart has also established an efficient sale strategy in China, where they concentrate on e-commerce and comparable sale growth rather than focusing on creating new stores. They define their operating discipline by reducing their levels of inventories and developing a goal of sale growth. Another tactic is the generic strategy which involves cost leadership. In this approach, the company focuses on low services and goods maintenance. The application of information technology is considered in maximizing operational efficiency as well as reduction of wages on employees. Wal-Mart emphases on achieving the economies of scale as a strategic objective meant to back up the cost leadership generic strategy. In efforts to minimize prices, the company needs to maintain large-scale operation and high volume of sales. The Wal-Mart enterprise strategies focus on the customer’s proposition regarding the price, access experience, and assortment. They put into consideration their customers’ wants, where they want it and the level of satisfaction they want. Wal-Mart has also established online shopping strategies in China, Japan and United Kingdom where they apply new tactics to manipulate more online shoppers through offering a discount on various e-commerce purchases. Other recent strategies include improved groceries to cater for the increased level of consumer’s health consciousness. Increased focus on the customers services in addition to promoting flexibility of the customers shopping experience through online order services and receiving text reminders from pharmacy
Wal-Mart development strategies are based on their vision and mission statements as its focus on maintaining low prices and costs. The company should therefore work toward achieving the goal strategies, generic strategies as well as sale and enterprise strategies. Further expansion of the company should be put in place in the effort to overcome the stiff global competition as well as achieving the market development and market penetration strategy objectives.