Global Marketing: Expanding Market Share and Profitability

This report discusses global marketing strategies and their impact on a firm's market share and profitability. It explores internal and external factors that contribute to a company's success in the global market, using Walmart as a case study. The report also analyzes marketing methods used by Walmart to influence customers in different societies.

Global marketing
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Executive summary
The report is about global marketing that provide opportunity to firm to expand its market
share and profitability by entering into new market segment through new or existing product.
The report has discussed about internal and external factors that contributed in growth and
success of enterprise in global market. Walmart is that organisation that operates across
worldwide to cater needs of different people and earn profit margin. Therefore it has explained
the way company has gain competitive advantages in global market and satisfy customer’s
needs. It has also analysis marketing methods that are used by company to influence customers
that are living in society.
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
PART1.............................................................................................................................................4
MAIN BODY..................................................................................................................................4
Situational analysis:.....................................................................................................................4
Company analysis........................................................................................................................6
Market entry strategies................................................................................................................9
Standardisation and adaption strategy.........................................................................................9
Recommendation.......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12
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INTRODUCTION
There are various factors in global business environment that impact on overall
performance of enterprise and its marketing positioning. Company formulate different strategies
as per particular country so that maximum customers can be attracted to make purchase of
products. Brand values are another termed that helps in company growth and success,
sustainability for long period of time in particular industry. This report is about Walmart that is a
multinational company providing products such as clothing, home products and financial
services to customers so that their various needs can be satisfied under one roof or store. It also
covers about marketing strategies, competitive positioning of firm, target customers and price
strategy that helps to influence people and enhance sales volume of enterprise in global market.
PART1
MAIN BODY
Situational analysis:
It refers to analysis of various external and internal factors of business environment
impact on company operation and profitability. Internal factors may help firm to easily meet
different challenges and make optimum utilisation of available opportunities so that organisation
can expand its market share (Farrell and Greig, 2017). Situation analysis of Walmart can be done
through use of SWOT analysis model that helps in identifying internal and external factors that
contributed in growth and expansion of enterprise in retail industry of UK. Such as :
STRENGTH
Brand Image: Walmart is one of the leading firms in America that offer qualitative and standard
products to customers in order to build strong brand image in the market. 523.964 billion
revenue was generated by Walmart by continuously innovating its products and services
(Ravenhill, 2017). Therefore strong brand image and product portfolio of Walmart has helps it
to easily influence maximum number of customers and increase its sales volume.
Highest market share: Walmart has continuously expanded its market share through innovating
its products and services as per needs and preference of customers. It has largest market share
with 2.2 million employees working together so that quality products can be delivered to end
users so that firm can earn huge profit margin.
WEAKNESS
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There are some of the weakness of Walmart that have adversely impact on brand image,
customer’s satisfaction and loyalty so they need to be removed for smooth operation of business.
Such as:
Poor working condition: Walmart had been criticism for not providing good working
environment to employees that resulted in dissatisfaction among individual (Baxter and et.al.,
2017). Therefore company has to face situation of high employee’s turnover and reduction of
brand image so manager need to plan strategies to enhance satisfaction of employees.
Weak operating performance: It had been noticed that in some of the countries stores of
Walmart are underperforming this is due to insufficient control over various stores that ioperate
in different countries (Manrai, 2017). Thus, company have to close down its operation or have
to bear extra cost to run such stores thereby reduces profitability of organisation.
OPPORTUNITIES
Walmart has always make effective utilisation of opportunity so that it can get maximum
market share and profitability.
Walmart can enter into new market: China, Latin America, UK and middle east countries are
some of the countries in which Walmart can expand its market share despite of operating in
various countries to earn maximum profitability (Agarwal and Wu, 2018). Company by entering
into such market condition can easily gain maximum market share and satisfy needs of
customers.
Online presence: Company have option to increase its presence online so that customers can
easily order while staying at their home. Walmart by using innovative technologies such as
social media to attract customers can easily promote its products and enhance market share in
retail industry.
THREAT
Competition: During recent year number of retailer in American market have been increased so
it is threat for company operation. Therefore company has to plan effective strategies to grow
and sustain its business in different market condition through satisfying needs of customers.
Technical issue in website of Walmart: Most of the customer faces different challenges while
using Walmart websites and some of the them have make complaint also but firm has not
improve its strategies to resolve customer grievance and problem that may hinder growth and
success of enterprise (Wu, 2016). Therefore company has to formulate redesign its official
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website so that customers can easily make use of it to make order or select particular products
while staying at home.
Company analysis
Marketing environment analysis: Walmart before expanding its market share in different
countries analysis various internal and external environment that affect company operation. On
the basis of external factor company formulate effective strategies so that it can increase its sales
volume and market share and protect itself from different threats (Lotayif, 2017). Therefore
Pestle analysis of Walmart when it is entering into new market that is UK is as follows:
Political factor: Brexit is one of the uncertain policies implemented by government of UK that
can impact on overall performance of firm. But at the same time free trade regulation has
provided opportunity to Walmart to easily expand its business in different countries such as UK
by exporting quality of products and services. Therefore, marketing manager has decided to enter
into new market segments like UK to earn maximum profitability and sales volume.
Economical factor: UK economic is underperforming due to brexit so it has reduced investment
of companies as they have to bear high cost to raise capital. Therefore Walmart by investing in
such economic can easily expand its market share within limited time and cost as government of
UK is encouraging foreign investors (Yousefi, 2016). Decreases in disposable income of
customers, high employment also provide opportunity to Walmart to hire, recruit highly skilled
employees at minimum rates so that company can easily expand and operate its business in UK.
Social factor: Preference and taste of people keeps on changing thereby marketing manager of
Walmart continuous identity recent trend, customer preference so that company can gain
competitive advantages in retail industry. People of UK are becoming more concerned about
their health and safety so marketing manager has informed people about qualities, feature of
organic products range to attract customers and enhance sales of firm. Therefore organic product
category of Walmart has helped in influencing large number of customer of UK to purchase
company products.
Technology factor: This factor keeps on changing due to various changes and development in
technologies and increase knowledge among customers. Therefore marketing manager of
Walmart has planned to use social media to promote its products to different customers that are
staying in different location of UK so that they can be easily aware about varieties of products
and services offered by company (Krush, Agnihotri and Trainor, 2016). Thus adaptation of
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innovative technology by Tesco has helped in meeting needs of wide range of customers and
contributed towards growth and success of organisation.
Environmental factor: It is another factor that impact on marketing strategies of Walmart such
as due to increase in pollution and amount of wastage from industries, companies have increase
awareness among government and customers. Therefore marketer of Walmart has informed
customers that company effectively utilise its resource and minimise wastage in order to ensure
better health and safety of end users. Marketing manager has decided to promote more organic
and hygiene food range so that customers are willing to pay extra or competitive pricing so that
firm can easily operate its function.
Legal factor: It is last factors that impact on marketing strategies of Walmart such as legal laws,
rules and regulation made by government of UK. Marketing manager has to ensure health and
safety of its employees while they are performing various functions within organisation and end
user by providing them sufficient information about products and services in which company
deals (Mekonnen and London, 2018). Therefore, legal factors have helped in increasing brand
image and effective marketing of products to customers.
Market competitiveness: It explains about market competitive position of enterprise in which
industry it’s operate such as Walmart competitive positioning in retail industry. Competitive
position of firm can be understood from use of Porter five force model that state level of
competition, power of consumer and supplier, threats of substitute products etc within retail
industry. Therefore porter five forces for analysis of Walmart market position can be as follows:
Level of competition: There is a large number of supermarket and grocery stores across UK
with different types, quality of products and services so company has to face tough competition
in global market. Thus, Walmart manager in order to cope up with high competition level has
planned to innovative its products as per needs of customers to get and maintain competitive
positioning in retail industry.
Threats of new entrance: It can be stated as medium as number of new entrance in retail
industry are few as Walmart has well established brand image and maximum customers
satisfaction (Bang, Joshi and Singh, 2016). Therefore, it is difficult for new entrance or
competitors to enter into retail industry as already there are large number of competitors with
huge market share such as Walmart .
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Power of consumers: They have high power to bargain with Walmart as number of companies
in retail industry is more that provide quality of products at cheaper rates. Thus, high power of
consumer has state company to reduce its cost of products and improve quality in order to get
retain customer’s loyalty and market positioning.
Power of suppliers: Walmart is huge organisation with number of employees working in
different stores so company have effectively build strong relationship with suppliers in order to
get timely supplies for meeting customers’ needs. At the same time there are large number of
supplier so Walmart can easily bargain with them and get raw material at low cost. Therefore it
can be illustrated that power of supplier is less in retail industry.
Threats of substitute products: Some of the companies try to imitate Walmart products and
services to influence people so threat of substitute product is medium. Company through patent
its technologies, products has saved its products from being imitated by other to gain
differentiate position and trust of end users (Papadas, Avlonitis and Carrigan, 2017). Thus, it
helps in retentions of large number of customers within company and increasing sales,
profitability of enterprise.
Selection of particular market or global segment
Walmart manager has segment market of its products and services on basis of various
factors such as taste, preference, geographical location, demographical, behavioural and
psychological factors in order to formulate effective marketing strategies to increase profit
margin. Company have classified on basis of geographical location such as region, density of
population and age, gender of people (D’Souza and et.al., 2019). On the basis of demographical
structure manager have segment market into income, employment rate, social status or standard
and family size. Lifestyle and personality of individual in another basis to select target market of
UK and global market for promotion of products and services. Behaviour pattern is also analysed
by Walmart manager in order to influence customers of particular country.
On the basis of all factors Walmart has decided to enter into UK as there are number of
younger generation, high population that are highly concerned about their health and safety and
want organic food products to satisfy their needs. Therefore manager of Walmart has decided to
expands its business in UK where people are willing to spend for qualitative products and
services for better health and safety. Another reason company is good discount provider so low
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income of customers acts as opportunity for firm to offer qualitative products at reasonable rates
so that customers needs can be satisfied.
Brand positioning: Walmart has strong brand positioning in international market as it products
and services are qualitative as well as it has strong global supply chain that helps in delivering of
products and services within limited time and cost. Millions of customers visit Walmart stores
each day and there are number of stores that are operating across countries to deliver qualitative
products (Choi and Lewis, 2017). Therefore strong brand positioning in mind and heart of
customers helps company to easily enter into new market segment and meet needs of each
customer to earn profitability.
Value proposition: Unique selling proposition of Walmart lies in prices of products as company
is known for providing “ every day low prices” at each stores in which it operates. Walmart have
wide varieties of products as it use strategy of economic of scale in order to provide maximum
benefit to end customers. Company has strong supply chain that helps it to deliver quick and
qualitative services to millions of customers in particular day. Therefore such Valuable strategies
help Walmart to gain competitive advantages and retain maximum customer’s satisfaction.
Market entry strategies
Walmart uses different strategies to enter into global market. It does not use similar
strategies to enter into particular country thus strategy of company vary as per country so that it
can gain maximum market share. Company is planning to target large number of customers
through different brand names as prefer by consumer of particular firm. Walmart have strong
brand image, effective supply chain and innovative pricing strategies helps firm to easily enter
into new market segment (Chun and Sim, 2017). Marketing manager of company before
deciding expansion of business conducted market research to know about existing customer’s
preferences, taste and trends for smooth operation of business and achievement of goal.
Marketing mix strategies of firm helps in influencing people of different countries or UK to
prefer Walmart’s products over other competitors in the market.
Standardisation and adaption strategy
Products and Services: Walmart have wide varieties of qualitative products and services for day
to day life so that customers can be provided maximum benefits. Company operates to provide
maximum value to its customers thus it helps in gaining competitive positioning in global market
and expansion of firm. Walmart continuously innovates its product as per customer requirements
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in order to gain competitive position in the industry. 24 hour after sales services of Walmart
helps in retention of large customer within firm and contributes towards growth of enterprise.
Market communication: It had promoted its products and services through in stores
promotional activities such as sales promotion and effective pricing strategy on every Friday to
attract customers. Every day low price, value of the day are some of the statement that are used
by Walmart to grab attention of customers and enhance sales (Mekonnen and London, 2018).
Grab it before it’s done is online slogan that used by Walmart to promote its products and
services to end users. Therefore both in store promotion and online presence helps in marketing
of different products and services to customers.
Pricing Strategy: Walmart has adopted low price strategy through brining economic of scale
and strong relationship with supplier so that it can get input at reasonable cost. Various discount
offers are launched by firm at different occasion so that people can be influenced to visit at stores
or official sites to make purchase and satisfy their needs.
Distribution: Company is well known for having strong supply chain that helps in delivery of
products to large number of customers in particular day. Walmart have various warehouse, stores
at where large quantity of products are stores so that customers needs can be meet within limited
time, cost and efforts. Firm has numerous stores at different location so customers can also come
to stores of Walmart and make purchase as per their needs and requirements.
People: Company have highly skilled, determinate and qualified employees that work together
so that company can meet need and demand of different customers (Lotayif, 2017). But at the
same time Walmart is facing high employment turnover due to discrimination and poor working
environment therefore company need to find ways in which it can motivate employees to work
hard for growth and success of enterprise.
Process: Manager of Walmart has set specific process that need to be followed by each
employee while working its function so that organisational goals can be achieved. Clearly
assignment of roles and responsibilities to each individual helps in effective coordination of
different individual towards accomplishment of common task. Definite organisational structure
and innovative technologies helps in effective operation of various function so that products and
services can be render within minimum wastage of time and efforts.
Physical evidence: Company has established its brand image in mind and heart of every
customers staying across worldwide through improving its quality of products and brining
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economic of scale so that maximum needs of customers can be fulfilled (Baxter and et.al., 2017).
Personal selling of firm also helps in motivating employees to choose products of Walmart over
other competitors in the market.
Recommendation
Some of the areas in which Walmart need to be improved in order to get competitive
advantages and maximise its markets share are as follows:
 Company need to formulate appropriate strategies for effective management of
people that are working in the organisation. Manager of Walmart need to gratitude,
respect and pay equal attention to all employees so that they can be motivated to
work hard in order to build strong brand image (Farrell and Greig, 2017). Manager
also needs to encourage views, ideas and preference of each individual in order to
build feeling of belongingness and influence them to work effectively for
achievement of firm goals.
 To have proper control over different stores operating in various countries company
have to hire investigator that will continuous analysis performance of particular
stores. So that effective strategies can be formulated to manage performance of
stores so that maximum outcome can be gained.
 Walmart need to improve its quality of products and use innovative technologies to
market its products so that customers can be easily attracted towards firm (Wu,
2016). Company need to organise training and development program so that
employees can easily learn new technologies to deliver services to customers.
CONCLUSION
From the above report it can be concluded that global environment affect adversely on
firm strategies and market position. Walmart manager by evaluating internal and external factors
is able to formulate effective strategies to enter into UK market so that company can earn more
profitability. At last it can be concluded that pricing strategies and strong supply chain of
Walmart helps to earn more and more revenue year by year by meeting needs of different
segment people.
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REFERENCE
Book and journals
Agarwal, J. and Wu, T., 2018. E-commerce in emerging economies: A multi-theoretical and
multilevel framework and global firm strategies. In Emerging Issues in Global
Marketing (pp. 231-253). Springer, Cham.
Bang, V. V., Joshi, S. L. and Singh, M. C., 2016. Marketing strategy in emerging markets: a
conceptual framework. Journal of Strategic Marketing, 24(2). pp.104-117.
Baxter, D and et.al., 2017, June. Population aging and the global economy: Weakening
demographic tailwinds reduce economic growth. In Berkeley Forum on Aging and the
Global economy. USA.
Choi, J. A. and Lewis, R., 2017. Culture and the star-power strategy: Comparing American and
Korean response to celebrity-endorsed advertising. Journal of Global Marketing, 30(1).
pp.3-11.
Chun, W. and Sim, W., 2017. Ethnic consumers and retail marketing strategy. Journal of
Cultural Marketing Strategy, 2(2). pp.158-168.
D’Souza, C. and et.al., 2019. Environmental management systems: an alternative marketing
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