Walmart Stores is a retail firm which operates a chain of large department stores in various countries in the world. It is listed on the Fortune Global 500 list as one of the largest firms in the world. The firm has built a strong reputation for offering a wide range of consumer goods in its stores at discounted prices.
It is the largest retail chain in the US and it is estimated that its 2012 revenues surpassed 400 billion dollars. The firm’s stores are spread out in 15 countries making it a multinational corporation. Walmart has investments in Asia, Europe, Latin America and North America.
Walmart’s business model has been instrumental in making the firm one of the most successful retailers in the world. It has a large market base because it sells a variety of merchandise at discounted prices. The firm sells apparel, footwear, groceries, and other consumer goods, to a variety of consumers.
Walmart ‘s business strategy targets the mass market consisting of low and middle income consumers in countries where it operates. The firm’s business decisions in the market are influenced by key changes in consumer lifestyles and trends. Walmart’s operations in the market have been made easy by efficient supply chain functions which make it possible for different types of products to reach its stores on time.
The firm was founded in 1945 by Sam Walton, who began a store that focused on selling large volumes of products at low prices. The business grew and in 1962, Walton opened the first Walmart store in Arkansas. Later on, the business expanded to 24 stores across Arkansas in a period of five years, with combined sales revenues amounting to more than 12 million dollars.
This encouraged Walton to open up more stores in other states in the country. Walton’s vision made the company to be more aggressive in its operations and this helped it to expand its market share. It later became incorporated in 1969 and in less than two years, the firm had close to 40 stores with total sales estimated at more than 40 million dollars.
It experienced rapid growth in the 1970’s and 1980’s because more shoppers were attracted by its business concept. By the late 1980’s, Walmart already had more than 1,000 stores. The firm had managed to stay competitive in an uncertain market which was heavily influenced by changing consumer patterns.
Walmart managed to introduce some technological solutions, which made it easy for its managers to communicate with employees working in different branches. This helped the firm to institute a strong organizational culture that focused on building strong relationships with its customers. Therefore, this improved Walmart’s reputation in the market.
The firm has instituted improvements in its operations and this have strengthened the loyalty of its customers. Walmart offers its customers a good shopping experience that makes them feel appreciated and valued. The firm also offers them high quality goods at discount prices; a strategy which works well with the mass market.
Most Walmart customers are attracted by its shopping environments which enable them purchase a variety of goods in one location. This has made it possible for Walmart to sustain strong emotional connections with its long term loyal clients. The firm makes them feel that it values their contribution to its growth because of the memorable shopping experiences they get whenever they visit its stores.
Walmart has designed its stores in a way that makes it easy for customers to view products which are displayed in different sections. It offers producers of various products a chance to market directly to consumers who visit the firm’s stores. This approach helps the firm to cater for a wide variety of consumers with different needs and expectations.
Since it is a well known brand, the firm has encouraged its customers to embrace the concept of ‘smart shopping’, which enables them save money whenever they shop in its stores. The company’s employees understand the firm’s values and this makes them offer high quality services to their clients. The firm has rebranded its premises with a new logo which shows that it intends to give customers more value for their money.
For many years, Walmart’s business model has focused on bringing in high revenues by selling large volumes of low-priced products. The firm’s strategy has been mainly influenced by price and this needs to change in the future. The firm needs to change its outlook to the market to attract high income consumer segments.
The firm needs to partner with producers of high class products which respond to the needs and tastes of more affluent customers. This will give the firm a stronger competitive edge in the market because it will enable it diversify its revenue sources.
The new Walmart store design is a good start because aisles have become wider which has improved the internal atmosphere in its stores. If the firm manages to sell to high segments of the market, it is likely to increase its sales revenues to strengthen its retail position in the market.
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