Walmart planning and strategies for the search for success
Introduction
Walmart, a company envied by many thanks to Sam Walton who has achieved that over time he manages to increase his level of operations both in his country of origin and in the rest of the world, constantly receiving recognition by important institutions of economic study, highlighting His brilliant performance. The company started from the idea of marketing several products in detail stores offering consumers a friendly treatment and the opportunity to buy at low prices.
Developing
The strategic expansion. The planning regarding the expansion was carried out so carefully that, unlike the other competing companies, the distribution centers were first established and then the direct marketing stores. In this way, the premises managed to stock up almost immediately at the time they required it, while new establishments were placed in a specific order. The update, relocation, readjustment and remodeling of the different stores.
They were at the time a fundamental part of the Walmart approach to become a national company. It is important to note that the Walmart almost always sought that the expansion is generated through purchases of stores or establishments previously operated by other companies, instead of building new stores. These actions can work quite well to minimize costs
Marketing strategies
To promote the company’s initiative to offer minor prices to those of the competition, it operated its different types of business with “always low prices”. This strategy allowed customers to identify the organization as a place where they will always pay comfortable prices for their purchases, also avoiding the conventional “promotions” that should be published in the different media and represented the use of considerable amounts of money that could be optimized.
It is important to say that this price reduction was strategically operated, in order to keep in customers the impression that they paid minor values without the need to be in a “too cheap” store, which contrary to what was desired could generate certain inconveniences. National Products Commerce. In a clear initiative to support the American national manufacturing, the company initiated programs in which it motivated its suppliers of imported products to begin production within the country. In this way, in addition to contributing with the nation, customers were also encouraged to buy national products,
thus generating positive results for the company because it could handle competitive prices. Incorporation of environmental responsibility. Among the programs designed by the company, the “green marketing” was included, based on the opportunity provided to consumers to do something positive for the environment by acquiring certain products that cause less pollution.This action required the collaboration of the suppliers, who contributed in the search for alternatives to generate less polluting goods and services.
Sales strategies
Part of the excellent performance of Walmart is because in addition to offering great discounts, it made several articles available to its clients that were usually considered auxiliaries, giving them a more commercial merchandise approach that managed to attract consumers’ attention. In this way, the company also took over a part of the market share that previously belonged to pharmacies and cosmetics stores.
The great variety of merchandise offered by the organization was not only formed by daily consumption products that are usually found in supermarkets, but rather covered many other different fields, such as clothes for the whole family, household items, electronic, electronic, Articles for vehicle, jewelry, shoes, among many others that were adding as time passed.Some of the organization’s stores had the ability to offer different services to their consumers.
These services included supply stations for cars, pharmacies, gardening centers, and coffee shops, mainly. Strategies of this style allow a sales business to complement the experience offered to a customer, causing it to form preferences by a specific store to know that it can carry out several of the activities that it requires to complete in the day. Development of own brands. Among the most outstanding strategies of this company, is the great advance it has achieved in terms of the creation of private brands for the development of a wide variety of products.
Its dog food line, for example, became the best sold in the United States. Walmart’s sales sales were considered the greatest magnitude within the industry, which served as a starting point for the implementation of factories that produce garments that add value to consumers and offer different fashion alternatives, this Considering that the best selling items were mainly underwear. For this production section, quite experienced professionals were hired to take care of the design of these garments.
In addition, work groups were designated that bought clothes from brands outside the organization, often in foreign countries, to obtain information about the tendencies of styles and preferences of fashion consumers in the world. Exclusivity of products. Walmart not only addresses to compete with other stores offering the same product at lower prices, in addition to this, it requires its suppliers that according to the season they give it exclusive products,
It is so much that its hangers 20% of its products can only be achieved in Walmart stores. The retail giant constantly conducts an investigation with focal groups, this is so that children and adults try and review the different articles, in order to understand their preferences and decide what the products that will be exclusive for Walmart will be
Suppliers
Price renegotiation with suppliers. The retail giant has applied a new strategy where it presses its suppliers that eliminate their marketing investments set with the chain and use savings to lower prices. Consumer products manufacturers, from diapers to yogurt, usually allocate a part of their budgets to advertising campaigns shared with the retail chain, such as more striking exhibitors, or online marketing,
The objective of applying this strategy is the reduction of costs and thus help to lower prices and be able EE.UU. At the expense of other rivals.
ICT strategies
The company implemented in its stores computer systems that allowed it to link inventory information with the areas responsible for purchases. Each purchase, return, or any other transfer of items carried out by means. In addition, vitally important data for Walmart could be obtained by allowing the recognition of those products with greater demand in certain periods of time, which would later use to generate appropriate planning.
In addition, Walmart has an area of systems that called it WalmarkLabs that operates with 250 people, who develop tailored software of all their stores. This is even the only operation outside the United States of the retail giant who program for the entire company in the world. That means that their Walmart stores, Bodegas, Superama, Sam S Club, Suburbia, Vips, Portón and Banco Walmart, operate with their own technology. This innovation strategy is a very important part that helps you make processes more efficient, reduce costs and offer better services than other competitive companies in the market.
Distribution strategies
Wholesales. Through “Sam´s Club”, the organization launched a subdivision to carry out sales operations with wholesalers, for which it installed quite large premises in which it offered very low prices and a small number of promotions. These establishments had lists of smaller products offered in conventional premises, but in much greater quantities. Walmart Supercenter. As the business grew, new store modalities were also born,
as is the case of Walmart supercentros that combined merchandise at discount with groceries and other frequent consumption products. In addition, they incorporated other service stores such as restaurants, banks, among others. Neighborhood market. In order to serve consumers who do not have time to enter the supercentros, small stores were created around them, in which fresh fruits and vegetables were offered, pharmacy products and photography services, and several of the items that the greatest items that the greatest. welcome had won in Walmart.
Wholesale online sales. A very good part of the articles offered by the company through its different business lines were included in the computer market in order to cover a greater number of customers. Sam ‘Club, for example, offered on its website wholesale sales that could be acquired by companies of different dimensions.
Human Talent Strategies
The leadership that is handled in this case includes the participation of employees, called "partners" in the organization. The members of this organization take responsibility for their departments as if they were their own companies, and receive planned training to ensure the company’s future. The development of organizational culture has even led her to receive important awards.
Walmart is one of the great examples about how beneficial it is to transfer value to internal customers so that these in turn transmit it to the external client, because in addition to the great discounts, this business model depends strongly on the kindness and excellence in Consumer treatment.
Internationalization strategies
The notorious performance of this company is also closely related to the operations carried out by entering foreign markets. Canada, a country next to the United States, was one of the first to join the Wal-Mart store chain, through the acquisition of premises that worked under a concept similar to that of the company: discount sales.
Similarly, different alliances and acquisitions in Mexico were generated that allowed the company to enter this country. Both of these two first two of internationalization worked well in the long term, allowing to achieve the achievement of being the largest restaurant chain in the country, the largest retail store, among others. However, in Argentina and Brazil the company had to face different challenges, mainly in terms of the adaptation of American culture to that of the peoples in which it wanted to enter.
An example of that is related to American meat cuts and jewelry accessories of this same origin, both rejected by not agreeing to consumers’ preferences on these aspects. Later, the organization would try to enter Europe as part of its extension project, having to exceed even more complex challenges and losing large sums of money.
conclusion
It is important to note that the Wal-Mart almost always sought that the expansion is generated through stores or establishments previously operated by other companies, instead of building new premises. These actions can work quite well in terms of costs, however it is necessary.
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