Question

ABOUT WALMART

What kind of strategies did the international and national competition use to earn market power?

Note: Answer has to be in 350 words. please do not copy and paste.please do not copy and paste from online!

Answer 1

Walmart follows several strategies that helped them to gain competitive advantages in National Market and International Market. They have earned better market power, here, let me list various strategies as followed by Walmart:

• Walmart has basically three business segments; these are Walmart United States, Walmart International and Sam’s Club. Walmart United States has major market share. In United States, they operate across all the states. In international market, they have built wholesale, retail and ecommerce marketplace. Another name Sam’s Club is operated across more than forty states in United States that has built membership based club. One of the important strategies is here, every day low cost and one stop solution providing. Here, Walmart has controlled their input costs to reduce daily cost of the items. There are several costs like operational costs, maintenance and holding cost, ordering cost, set up cost. They have focused on cost leadership strategy to keep input cost always down.
• Another strategy is every day low price. With this strategy, they are able to lower the pricing on the items. So items are sold at comparatively low price. Customers receive various discount offers and stable pricing. Hence, customer can rely much on their business. Such low price keeping strategy has helped them to earn superior market power.
• Walmarket has built competitive analysis for each products, here, each products are evaluated against their features, brand, pricing offered by various competitors. They offer slightly low price to get more attention from customers.
• They have earned their market power with giving more freedom and choices to customers and lowering the price of each product, so, customers can reveal more savings with each buying. Free pick up option is another strategy, with this strategy, customer can buy items online and select their nearby warehouse, later they can collect their items from the warehouse at their ease.
• Online grocery and money back guarantee: with such services, customer will order items online and take delivery at the home or doorstep. They can also get hundred percent money back if they are not fulfilled with the order. With such concept, customers are encouraged to buy items through taking home delivery services. Such concept is bringing new evolution in ecommerce market.