Remarkable Business Strategy of the Wal-Mart - Essay Example

?Evaluation Essay on Wal-Mart Introduction: The Wal-Mart has shown the art of retailing. The global retail giant came up with the concept of selling mass products in a discounted rate to the customers. The main concept was to sell in high volume with low price so the volume of the profit goes high. However, this paper will try to evaluate the success of Wal-Mart which is indeed the market leader in the retail industry, and it will prove the supremacy of the organization with personal experiences and supportive facts. Personal viewpoints and some observations about Wal-Mart: The base of this argument can be put as the undisputed crowd pulling ability and growing footfalls in Wal-Mart. There are many other retails stores are there and they also pull the crowd very efficiently but do they pull crowd like Wal-Mart? Well, from many personal experiences it can be stated that the world number one retailer indeed pull the crowd efficiently than any other stores. If a person goes to any Wal-Mart store in USA in any time, he or she will see a gathering of huge crowd looking to buy something or the other. The cash counters are always busy with long queues and happy customers are always coming out with their purchases. However, the question is how they are so successful and how they overcome the tough competition in the market. From the personal experiences and viewpoints it can stated that Wal-Mart follow the strict rule of POCKETS (price, operations, culture, key item promotion, expenses, talent and services). They follow unique penetration pricing policy, they never tend to compete, break through operations management can handle the customers and the employees wisely within the store, great culture, they promote the key products very tactically and the inner talent of the management is distributed properly within the lower level of the organizations. There are some points are also there to support the positive aspects of the Wal-Mart and they are mentioned bellow. Remarkable business strategy of the Wal-Mart to support the argument: Wal-Mart has changed the seller’s market to the buyer’s market with their great business strategy. In the United States the main strategy of the Wal-Mart is to open stores in every five kilometers. And the main concept is selling practically everything under one roof with large discounts. The main strategy is to compel the people to buy more and more. Evolution of the supply chain management system: Supply chain is a very important factor for a global giant like Wal-Mart. And in this case they are very strict to choose their thousand of suppliers globally. Mattel, the toy maker is one of the biggest suppliers of toys to Wal-Mart and they admit that it is a great business channel but a tough client as they want great quality parameters. Wal-Mart looks for close and strong relation with their suppliers. Wal-Mart is always hungry for customer satisfaction and that is the reason they also look for great suppliers who can provide good quality products in proper time with competitive pricing. Evaluation of the brand image: Wal-Mart has always been in the way to strengthen its existence. Around 2000 they opened the walmart.com which is the online portal for online shopping. And they have all the facilities like on-time delivery, great products and easy to use. In 2008 they have changes their total brand image, from the Wal-Mart store; Inc they changed their brand name to Walmart. Criticism about Wal-Mart: It is a true fact that great brands have great criticisms. The Wal-Mart has been criticized in many ways many times but somehow I had overcome the criticism and embarked towards the success. In many times it has been criticized as the slaughter of the small grocery businesses. There are many times when small grocery stores owners have opposed the erection of the Wal-Mart store in their vicinity. But, the success relies on the verdicts of the customers. Mr. Sam Walton understood the importance of the demanded products to be sold in a low price in a price sensitive market. The Wal-Mart is just like an addiction to the customers. No matter how much criticism the company may face, but the bottom line is it’s a people’s brand. It is like an obsession to the customers. The Wal-Mart has shown the way to the customers to do shopping with free mind. Significant points about Wal-Mart to support the argument: There are some facts which are very important to support the supremacy of the Wal-Mart in the retail industry to support the argument and to convince the people to accept the supremacy of the brand. And, they are great quality, great store locations, great shopping features, great customer service, great quality products, great pricing strategy and great vendor selection, great branding and advertising strategy and great online portal from where customer can buy products without wasting time and money to visit the stores. It is not a wise decision to exploit the brand for the higher sales volume, rather it is better to nourish the brand as a personality. Wal-Mart took over ASDA in UK to hold a strong position in UK market to hold a promising position against Tesco. The final evaluation and conclusion: Wal-Mart is no doubt the world’s largest retailer with more than 400 billion Dollar revenue. And the best part is even after so much of criticism in different counties it has still remained the number one and has been able to open new stores in different countries. There are many comparisons with Tesco and some other global retailers about the supremacy of the Wal-Mart, but anyone can accept than Wal-Mart indeed is the global leader of the retail industry. This statement is not given under and preferences it all about the fact and figures from the market. It can be stated that from any aspects of retail business the Wal-Mart is the global leader with more stores, more existences in different countries, more brand value and more customer satisfaction. Read More