The Evolution of Supply-Chain-Management Models - Essay Example

The largest retailer in the world Wal-Mart has adopted various strategies for its marketing mix, to handle competition and other operational decisions. This is due to the focused approach and effective strategies that Wal-Mart has been able to create and maintain its leadership in the market. This paper briefly discusses its strategies on various levels of its operations.
Company
Wal-Mart is the largest retailer in the world with a consistent ranking in fortune 500 lists on top 5 for the last many years. Wal-Mart is known for its tough bargaining strategies among the supplier while at the same time providing the best price options to its customers. It has posed tough competition for its competitors for each of its functions starting from procurement to the delivery of products.
As of September 30, 2006, the Company had 1,123 Wal-Mart stores, 2,142 Supercenters, 570 SAM’S CLUBS, and 109 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (12), Brazil (296), Canada (279), China (66), Costa Rica (133), Germany (85), Guatemala (125), Honduras (38), Japan (391), Mexico (845), Nicaragua (36), Puerto Rico (54), El Salvador (59) and the United Kingdom (326).
Target Customers and Markets
Company targets volume. The target consumers are middle-class and upper-middle-class customers. These customers do shopping for their monthly grocery requirements. The target markets are identified on the basis of volume and population in a particular area. Apart from that various other macro and micro environmental factors are considered before entering the new market.
Marketing strategy
The company adopts a price-based marketing strategy. It offers the best prices for the goods it is selling to its customer.
Products
The company ensures the availability of products in the store through proper inventory management, logistics management, and distribution management. It offers a range of products from eatables, clothing, grocery, and other household products.
Price
Wal-Mart is a tough bargainer for its suppliers and this is the reason it is able to maintain low prices for its products.
Place
The company has 1,123 Wal-Mart stores, 2,142 Supercenters, 570 SAM’S CLUBS, and 109 Neighborhood Markets in the United States. Customers can visit any of these stores according to their needs and location.
Promotion
Wal-Mart adopts various promotional strategies to communicate with its customers and stakeholders. The promotional strategies can be on a local level, national or international level. The promotional channels utilized here can be print, electronic, or a combination of a number of channels. It has an excellent virtual platform with an attractive website that offers another channel of communication and marketing.
Competition
The retailing industry is a highly competitive industry because competition comes in various formats.