Walmart Analysis

3511 words - 15 pages

On July 2, 1962, in Rogers, Arkansas, Sam Walton opened the first Wal-Mart discount store. Sam Walton’s vision was to have the lowest price for the consumers anywhere and anytime. In just five short years the organization owned 24 stores with 12 million in sales. The early years of the company had the business owner leading the organization daily. In 1969, Wal-Mart was officially incorporated as Wal-mart Stores, Inc.

In 1970, Wal-Mart sold their first public stock at just under $17 a share. Starting in 1970’s, Wal-mart had a decade of incredible growth with the expansion of the stores nationally, the Home Office opened in Bentonville, Arkansas, and the first distribution center.

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The target market for the organization is anyone who wants to save money or the hard working middle and lower class of society. The target market for this organization is very broad to help Wal-mart have a huge customer base. The value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Wal-Mart’s value to their target market is by proclaiming to always have the lowest price every day. “Wal-Mart means low prices. They’ve defined their market position very effectively, and thanks to that fact, people know what they’re going to get when they buy products or services from those companies.” (Dylan, 2007) The company does this by having many stores throughout the United States and abroad in small and big towns to deliver products and services at a discounted cost compared to other retail stores. Save time, save money can be used to describe the value this organization offers to the everyday public. The pricing of products and services of the company are lower than other retailers to even price match their competitors’ prices. Wal-mart having their own distribution centers which are strategically located to incorporate a seamless way to get the products to be sold in the retail stores. The evolution of Wal-mart’s supply chain includes three elements, according to a 2012 article from Arkansas Business: “distribution practices, operating its own fleet of trucks and technology.” (Traub, 2014) With Wal-mart having their own distribution centers and trucking fleet help this retail giant stay competitive in the market place and continue to have low prices on a variety of items and services.

With the era of the internet and the use of applications Wal-Mart has step in this forefront head on to create a flawless way to communicate by “using the explosion of digital channels to its advantage.” (Pollitt,2014) Wal-mart’s communications with employees within the organization have the use to This website was first used to provide information to associates but today have become a great deal more. “Today, we use the site to communicate new initiatives; involve associates in company programs and events; gather feedback about operations, marketing, advocacy; and as a change management tool.” (Bliss,2015) In 2009 with the launch of this intranet website 920,000 associates are registered on the site, 85 percent of the users return every week, and many topics discussed have several times became into national advertizing campaigns. This internal communication strategy “Our communication strategy is grounded in presenting user-generated content first, followed by context with company facts and information for support and reference.” (Bliss, 2015)

Wal-Mart is sustainably different from the competition by having a lower price, many locations throughout the United States, and never closing and being open 24 hours a day and most holidays. Target, Best Buy, and Costco are all competitors of this...

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