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Business Strategies of Walmart

 

The put constant emphasis in giving the customer everything they need. They want the customer to get in their shops and find everything they need without going to other stores.
             On the other hand, Walmart shows strong advertising about how they can offer the lowest price every day. Their orientation is in selling the lowest price of every product in order to have the highest sales. They do not target to a specific customer; they want everybody to be able to afford all the products they can offer (Walmart).
             One aspect of Walmart that makes them different from the rest is their relationship with their suppliers. Walmart over the time has become a powerful company for suppliers and they obtained a dominant force over them eliminating the supply power. Because of this they can aim to a cost leadership strategy, giving them the possibility of giving their customers "everyday low prices." Some companies have over their 20% of their sales in Wal-Mart, and if they decide to give up their contract with their supermarkets, that would mean a loose over a quarter percent of their sales.
             This status that Walmart has by elimination the supplier power has changed the way they relate with their suppliers. Walmart tells their supplier upfront how much they would or would not pay for their goods. An example of this is Walmart relationship with Vlasic. Walmart "forced" Vlasic to sell pickles in gallons containers under the price of $3.00. Vlasic tried to negotiate a higher price and their request was denied causing them a loss of millions of dollars.
             Marketing Plan.
             Walmart's mission statement: "Saving people money so they can live better.".
             Walmart focuses on improvement of sales by constantly reducing cost and give the costumer the lowest price possible, the adoption of efficient distribution and logistics management systems to ensure the constant flow of the goods and the use of highly advantageous innovate information technology tools that makes the operating processes even faster, efficient and up to date.


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