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Critical Analysis on Walmart Company (UAE & Kuwait)

   

Added on  2021-02-18

24 Pages6874 Words462 Views
Market Expansion Proposal for WalmartCompany (UAE & Kuwait)1of 23

Table of ContentsIntroduction...........................................................................................3Marketing Strategy...................................................................................4Competitive strategy................................................................................5The Existing Market of Walmart..................................................................6Walmart Product and Services that Planning to Expand...................................6Main Body.............................................................................................71. Two perspective emerging global markets of Walmart and examine PESTLE analysis.................................................................................................7Merits and Demerits of UAE Market.............................................................7Merits and Demerits of Kuwait Market..........................................................9PESTLE Analysis on UAE and Kuwait Markets.............................................102. Critical Analysis of Which Market is Best Suited for the Chosen Product and Organisation with Sufficient Evidence......................................................133. Market Entry Plan to Introduce the Product in the Chosen Market............14Market Entry Plan....................................................................................14Entry Strategies.......................................................................................15New Product Launched by Walmart.............................................................15Choice of Market......................................................................................16Acquisition Strategy..................................................................................16Steps and Strategies to Introduce the Product................................................16Steps to Introduce the Product in the Market.................................................17Conclusion..............................................................................................19References..............................................................................................212of 23

Introduction:Walmart Inc. is an American multinational retail store incorporated in 1969 deals inthree business segments Walmart U.S, Walmart International and Sam's club.Segmentation of the store operates with merchant concept in retail as well as digitalstores. It also offers financial services and related products as money orders, prepaidcards, wire transfers, check cashing and bill payments. Walmart categories into retail,wholesale and others and these sub categorised into supermarkets, discount centers,home improvements, drug stores, convenience and digital stores. It is the biggestorganisation in consideration of revenue-over US $500 billion with more than 4700locations approximately 11,600 stores under 59 banners in 28 countries and e-commercewebsites in 11 countries. Formerly, the primary objective of the organisation is selling inmass at low prices on low margins. The organization became the largest retail store byfocusing on customer orientation, cost leadership and efficient distribution network (Akaka,Vargo and Lusch, 2013). The current mission statement of the Walmart is ''we save peoplemoney so they can live better'' and its tag line is ''Save money, live better''. Walmart isreconstructing many stores and opening of 20 new stores. In this, they provide some extraservices to both customers and employees’ large aisles, new signs and flooring enchantedelectronics with attractive displays, a developed pharmacy, consultation area, cosmetics,baby care rooms, produce department.3of 23

Marketing strategy:Marketing strategy is that business plan which adds value, frames key marketingmessages, and helps to search the potential consumer base by assessing the needs andwants of the customers and it consist of marketing research by 7P's of marketing andmany more (Paliwoda and Thomas, 2013). Marketing Mix of Walmart (product, price,place, promotion, people, process and physical evidence):Product: Walmart is a largest retailer and it provides each and every merchandisethat a consumer utilise in day to day life consist of home appliances, toys, outdooressentials, grocery, electronics, college accessories, movies etc.Price: Walmart emphasis on producing the products in large quantity to achieve theeconomies of scale that provides the competitive advantage by offering 15% low price incomparisons to competitors. Walton stated the message ''Always low prices'' and''Everyday low prices'' according to the time and demand (Armstrong and et. al., 2011).Walmart positioned itself as a goods offering comparatively at low price against itscompetitors. In current time period, Walmart contribute about 2% to the country economyand it is reached with their success in large part. The main pricing strategy of company isto lower priced products delivered to their customers throughout the year instead of offersuch prices only on sales outcome. Place: Walmart is giant organization that has more than 10,020 retail stores in 28countries and operates in bricks and mortar as well as bricks and clicks. It operates indiscount stores, super venders, express stores etc. In current time, W is operating in fewcountries such as USA, Chile, Argentina, Canada and South Africa. Promotion: Walmart has its own promotional strategy in which it offer multipleproducts into a bundle that gives high sales and margins also and this approach helps toconsumers to take frequent purchase decisions.4of 23

People: Walmart deals in large number of countries, people who works in theWalmart comes from the different caste, creed, religion and work form instead of themanagement provides flexibility to their employees so that they can make comfortablethemselves. They look after their work hours, remuneration, training and skills so thatemployees contribute at large. Physical Evidence: There are more than 11000 stores spread in all over the world.Each store has got multiple category products, efficient product placement etc. along withthis, Walmart has different offices, which spread in all across the world (Berthon and et.al., 2012).Process: Walmart has the 16 finest supply chain in the globe and its primaryobjective is that customers should admire their services and consumers get productsfrequently and shelves always remain full behind that a reliable supply and distributionchannel works.Competitive Strategy of Walmart:Walmart is the international retailing organisation which mainly deals in differenttype of products and services such as canned food, frozen dinners, light bulbs, buttermilkbiscuits, cinnamon rolls, pies and some other traditional grocery store goods or products.Thus with the support of Kuwait's government Walmart will become successful inexpanding their business. Operating with profitability in the competitive market andbuilding strong relationship. The competitive strategy of the Walmart includes the conceptof low price by producing large assortments of goods in different segments. Walmartaggressively reap the benefits from the supply chain and transfer the benefit to theirultimate consumers. And ''black Friday'' is the day it offers high discounts to its consumers(Michaelidou, Siamagka and Christodoulides, 2011). Another aspect of the strategy is thatit will works on large and different chains of goods and high storage unit therefore it reapsthe high profit ratio and large consumer base by offering low prices in against to the5of 23

competitors.A very happy consumer is very essentials part of the success of the organisationand Walmart devotes high investment on consumer research and management. It hasstrong supply and operation team that serves millions of consumers. The distribution chainthat operates in 27 countries worldwide in retail, wholesale and others, the distributionnetwork of the organisation is very strong and it strategically operates the branches of thewhole world. Its retail units are physical stores of sizes ranging from 4000 to 180,000square feet. Its positioned no. 6 in terms of distribution channel in retail sector and 16 rankin terms of supply chain globally (Bertoli, 2013).The Existing Market of Walmart:The Walmart International series includes various formats include retail, wholesaleand others. These categories subdivided into supermarkets, store formats, discountsstores, hypermarkets and in these markets they provided goods such as electronics,movies, music, home and furniture, home appliances, clothing, footwear, jewellery, toys,health and beauty, pet supplies, sporting goods and fitness, party supplies, grocery, photofinishing, auto fitness etc. and the goods supplied by the organisation available for all agegroups and different demographics, at low prices so that consumers enchanted towardsthe goods and services and applying the best supplier chain for each and every sphere ofthe world. It handles efficiently the whole supply chain of such the large scale of goods.Walmart Product /Services that Plan to Expand:Walmart gain extraordinary success and prosperity in home industry beforecommenced the plan of international expansion. They are expanding their products in theinternational market place that named as “new brand clothes” to the customers. This is avery attractive product because this will gain attention of large number of customers forintroducing this product in the UAE and Kuwait markets; Walmart can gain attention oflarge number of consumers. Also make them satisfied with such goods and services in6of 23

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