Market Strategy - Essay Example

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Hence, there always exists a discernable relationship between a company’s organizational structure and market strategy. In this context, it will be relevant to…
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Market Strategy
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Market Strategy of the of the Concerned October 30, 2009
Market Strategy
There is no denying the fact that success in business is primarily about adapting to change and local variations. Hence, there always exists a discernable relationship between a company’s organizational structure and market strategy. In this context, it will be relevant to elaborate on the link between three reputed companies’ that is Wal-Mart, McDonalds and Skype’s organizational structure and marketing strategies (Taylor, 2009).
As far as the local operations of Wal-Mart are concerned, its organizational structure has always been in tandem with its market strategy. Hence, while opting for a large scale expansion in China, the company was quiet confident that its traditional organizational structure comprising of well laid out stores backed by time tested retailing concepts and culture would work well in China (Pogoda, 1994). However, Wal-Mart soon realized that the Chinese customers required different sort of merchandize and goods. Therefore, to understand the local markets, the company decided to get actively involved with the local communities and started opting for local suppliers (Taylor, 2009). This strategy of retaining the traditional organizational structure, with localized procurement worked wonders for Wal-Mart in China.
Just like Wal-Mart, when McDonalds decided to go global in the 90s, the company was confident that its well-calibrated organizational approach of offering franchises at the local level would work well in the foreign markets also. Luckily, for McDonalds, the things worked well as was expected and its brand of fast food soon became a rage in the New Markets in Asia, Latin America and Africa. However, this does not mean that McDonalds simply transplanted it US based organizational structure in the foreign markets. The company was well aware that food is always about flavors, which differ from place to place and people to people. Therefore, the company not only adapted its distribution strategies and packaging as per the local preferences, but also customized its products to suit the local tastes. For example, McDonalds offers Halal fast food in the Gulf and beer in Germany (McDonalds, 2005).
From the very start, Skype succeeded in establishing itself as the most popular voice communication service around the world. The company conducted its business through it internet portal. However, it was not long that Skype realized that the emerging new trends and developments in the digital technology would make it literally obsolete, if it fails to customize and adapt to the novel digital portals. So the company not only established linkages with other well established brands like Apple, Boingo and BlackBerry, but also expanded its online stores and enhanced its availability at multiple platforms like cell phones, Android platforms, Video calling, Pocket PC, etc (Gough, 2005). This ability of Skype to retain a flexible and pliable organizational structure that perpetually adapts itself to its ever-changing market strategies assured its success and sustenance.
The crux of the matter is that as expected, Wal-Mart and McDonalds retained the essentials of their organizational structure developed in the US while expanding in the foreign markets, while adapting it to the local tastes and preferences. Skype, on the contrary being a technology based company, choose to keep a fluid organizational structure that could always adapt to ensuing changes.
Works Cited
Gough, Michael (2005). Skype Me!. New York: Syngress.
McDonalds History. “The History of McDonalds [Electronic Version]”. Retrieved October
30, 2009 from
Pogoda, Dianne M (1994). “Expansion plans at Wal-Mart roll along at full steam”. WWD
Conde Nast Publications, Inc. Retrieved October 30, 2009 from HighBeam Research:
Taylor, Sheri (2009). “A Link Between Marketing Strategies and Organizational Structure”.
Retrieved October 30, 2009 from Associated Content:
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