Wal-Mart Stores, in Canada - Essay Example

Wal-mart is confident even when faced with rivalry. For more than two decades, Wal-Mart in Canada has been fending off incursions from dollars stores with success (Roberts & Berg, 2012). This is caused the Wal-mart Canada market stores to increase its market share annually. Wal-mart Canada has been gearing up for increased competition; this year marked a significant acceleration. This has caused the company to invest 750 million dollars into 74 stores. The strategy involved establishing some new stores and revamping already existing stores.

About 39 former Zellers outlets were converted. This became the largest wall-mart expansion venture since its arrival in Canada in 1994. The biggest change in Wal-mart Canada is food. More than half the stores are going to carry fresh food. This ratio is set to grow even further. Wal-mart Canada’s strategy is bound to buffet many retailers (Roberts & Berg, 2012). Major competitors in the Canadian market like Loblaw, Costco and Dollarama have been reviewing their market plans in view of the upcoming threats.

Wal-mart Canada seems to be doing more than its competitors. With the arrival of Target, Wal-mart Canada’s priority is to defend its market share. The size of Wal-mart Canada and its triumph can be ascribed to an excellent supply model. The system promotes the needs for its outlets. The business opted for a focal point and beam mock-up (Roberts & Berg, 2012). . All this data is relayed at the central point, making transactions easy and transparent (Roberts & Berg, 2012). Merchandise is delivered to Wal-Mart’s 63 centers of distribution.

Wal-mart’s commerce mock-up gets unrivalled financial system of balance due to their price policy. The financial success of Wal-mart Canada is based on controlling the supplier prices to keep them down and buy in large volumes. This helps the company to keep the overheads and manufacturing cost down. The Wal-mart Canada’s wholesale prices are low due to large purchases from suppliers. This creates a margin for mark up. This has sparked a seller rivalry from Wal-mart in Canada seller contract.

Wal-mart Canada is known as the primary company in this century with the aim of reverse the retailer’s classical dependence. Furthermore, Wal-mart Canada outlets are known for minimizing cost of transportation and shipping. This happens through the use of advanced distribution system. Through this, overheads are kept low. Wal-mart Canada is known to establish retail and supercenters stores where land is cheap, often in the edge of town places. The location makes the stores easy to reach and encourages convenient shopping.

The organizational culture of Wal-mart Canada is said fuel its success. Low prices and friendly services are known encourage large-scale consumption leading to many sales. Wal-mart Canada has a wide range of selection and encourages conveniences and wins customer loyalty (Roberts & Berg, 2012). The basic values instilled into the workers are: striving to excel, respect for individuals and service to customers. Wal-mart Canada has a Wal-mart cheer whose aim is to promote the company culture and customer service.