Topic > Wal Mart - 387

Identify and evaluate the marketing strategies that Wal-Mart has pursued to maintain its growth and leadership position in marketing? What factors should a company consider when developing its marketing strategy. In my analysis of the article, the marketing strategies employed by Wal-Mart are;I. Cost LeadershipWal-Mart is committed to providing quality products at the lowest price. Wal-Mart's prices are up to 15% cheaper than other stores. Wal-Mart store managers have the authority to lower prices based on local competition. Wal-Mart stores are built on the outskirts of large cities and communities with a warehouse look which gives them competitive advantages in terms of low rental and maintenance costs. evaluation, cost leadership strategy helps Wal-Mart satisfy the market niche of customers looking for quality goods at an affordable price. This was the market penetration and development strategy that helped the company penetrate and expand in its target market. Wal-Mart is somewhat protected from industry competitors due to its cost advantages. If the rivalry within the industry is based on price, Wal-Mart holds up better than other companies due to its lower overhead costs and advanced inventory system.II. Differentiations and operational effectiveness. In addition to cost leadership, Wal-Mart's philosophies of workplace excellence, customer service, the store's warm feel, and its core competencies in unique product inventory systems have helped Wal-Mart achieve quality leadership that has placed Wal-Mart at the competitive advantage over its competitors. From my analysis, the danger still exists for Wal-Mart is that the competition can easily imitate Wal-Mart's method. This is already evident with Target and Kmart building new stores that resemble the supercenter format and emulating Wal-Mart's ways by introducing concierge systems, updating interiors, developing new logos and signage, and introducing a new inventory response system. To combat this threat, Wal -Mart must leverage its bargaining power over its suppliers and pass the benefits on to its customers in the form of quality branded items available at less than competitive prices.