Retail Strategy Analysis: Walmart's Market Position and Competitors

This report provides a comprehensive analysis of Walmart's retail operations, market position, and competitive strategies. It begins with an introduction to the retail sector and Walmart's global presence, followed by an examination of Walmart's retail type, key competitors (including Costco, Amazon, and Target), and performance metrics. The report delves into Walmart's customer segments, highlighting their segmentation strategies based on geographic, demographic, and psychographic factors. It then explores Walmart's core offerings, including product assortments, services, and pricing strategies, particularly its 'everyday low price' approach. Furthermore, the report examines Walmart's value propositions and appeals to its target customers, emphasizing its innovative thinking, supply chain management, and commitment to customer satisfaction. The analysis also assesses Walmart's differentiation against competitors and suggests strategies to enhance its market position, such as maintaining a low-cost leadership strategy and leveraging technology for inventory management. The report concludes with a summary of the key findings and references supporting the analysis.

Retail project

INTRODUCTION...........................................................................................................................1
What type retailer are they? Who are their core competitors?...............................................1
How well have they been performing?...................................................................................2
Which customer segments are they trying to serve?..............................................................2
What is their core offer -products assortments/ services/pricing?..........................................2
What are their value propositions/key appeals with their targeted customer?.......................3
Are they differentiated enough against their core competitors? Why?..................................4
What should they be doing to enhance their market position?...............................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Retail sector is a process in which selling of customer products and services are made to
wide range of customers via different types of distribution channels in order to earn more and
more profit base (Ayers and Odegaard, 2017). Present report has been conducted on Walmart
which is one of the largest multinational retailing organisations established in the year 1962.
Company provide their services in much different location around the world with the help of
strong retailing strategy. In this report formative discussions have been made on, type of retailer
Walmart is along with their core competitors and their consumer segment. In addition with this,
effective measure are covered in this report with the help of which company is planning to
expand their area of business along with this, value propositions and key appeal with company
targeted consumers are also mentioned in this report in order to provide overall justification to
company strategy.
What type retailer are they? Who are their core competitors?
Walmart started their functions with a single discount store and effectively grown their
business over the past 50 years into one of the biggest largest retailing store in the world.
Walmart Inc. founded by Sam Walton in the year 1962 is an multinational retailing corporation
engage in the operations of providing different types of merchandise through grocery stores,
hypermarkets and discount department stores. Company headquartered in Bentonville, U.S.
Company effectively perform their functions and continues to be sustaining as a market leader of
corporate philanthropy, sustainability and employment opportunities. Walmart efficiently
performs their functions by unwavering its core commitment to create different types of
formative opportunities along with bringing value to high value to communities and consumers
around the globe. As Walmart is multinational organisation conducting their functions at
international level they have numerous competitors base that include, Costco, Amazon, Alibaba,
IKEA, Lowe 's and more. Walmart holds effective opportunities for further global growth and
they are world's largest retailing entity and is presented over in more than 50 countries
worldwide. Mentioned below there is a brief description of Walmart competitors:
Costco: It is one of the largest chain of company offering their services in retailing sector
in US along with other nations that include, Canada,UK, Japan, Australia, Mexico and Spain. By
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the year 2018 Costco effectively reached unto 749 warehouses. Costco effectively grown their
business in fastest manner which makes them a very tough competitor of Walmart.
Target: This Company is a major player in the industry of retailing sector in US market.
Target offer different type of assortments related to merchandise and food products. During the
past recent years company effectively managed to achieve impressive growth.
Amazon: It is one of the biggest E-commerce brand stores which have grown its business
operations during past recent years. In addition with this company also managed to effectively
grab a strongest position with holding impressive base of share within retailing industry. This
brings Amazon in the significant list of Walmart competitors.
Best Buy: This Company is one of the major player of retailing industry in US. Along
with this by the end of 2018 fiscal year Company hold 1200 large and estimated number of 300
small format stores. Best Buy employees more than 125000 workers and showed effective
financial performance in 2018 as their overall revenue climbed up to 7% .
How well have they been performing?
It has been effectively evaluated by witnessing Walmart history as this greatest
operational triumphs seen a tremendous increase as they have expanded their operations by
having more than 11,700 stores around 59 countries. In addition with this, as Walmart offer
extensive employment opportunities with having more than 2.3 million employees in 29 different
countries. Along with this, with their high rate performance company effectively manage an
average base of $32 billion in their inventory. The core competencies of company showed that
company by performing their services in well effective way increases their level of possibilities
to separate themselves from other competitors by effectively differentiate them for rivals.
Which customer segments are they trying to serve?
Segmentation refers to process of division of population into groups on the basis of
various cahracteristics. With respect to geographic segmentation, domestic and international
region along with urban & rural areas. Apart from this, Walmart also considers individuals of
different age categories who do not matter either male or female. They also takes into
consideration households and individuals who belong to middle class and have low incomes.
Walmart give different offers to customer who opt for their brand always by providing them cost
advantage. They maintain their customers effectively either they are cost-conscious individuals
or reserved. They also segment market on the basis of psychographic which comprises of
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lifestyle as well as social class (Albrecht and Spang, 2014). Lifestyle can be further considered
further considered as struggler, resigned, mainstream individual as per cross cultural consumer
characterization by Young & Rubican. The above provided details signify stages of segmentation
as well as criteria of segmentation. It basically divided market into segments on the basis of
certain criteria.
What is their core offer -products assortments/ services/pricing?
Walmart it is one of the largest companies operating their functions in many different
locations with more than 1.2 Millions associated employees and estimated amount of 3989 stores
around the world. Walmart perform their functions with an effective mission which is to save
people money in order to make them live better. Company offer different type of product range
which include household supplies dairy products, bakery, health and beauty aids and pharmacy.
Walmart offer their products in retail service industry and effectively use everyday low price
strategy which helps them to attract wide range of customers on daily basis. In this modern
scenario consumer seeks convenience in which they want one stop shopping. Thus, Walmart
offer a wide range of products including entertainment and grocery to Sporting good and crafts
along with this company offer deep assortments which will effectively appreciated by their
customers. They offer the same products with exact prices also on their online shopping
walmart.com. Company effectively take advantage of their organisation wide size and scale in
order to provide appropriate access to the customers with high quality and fresh nutritious food
on daily basis at low prices. Along with this in order to gain more competencies Walmart create
opportunities for small and medium Global suppliers to become their associates. This strategy
will effectively help Walmart to reach out at the end corner around the world.
What are their value propositions/key appeals with their targeted customer?
Walmart is one of the biggest retail store conduct their functions with certain values those
include innovative thinking and leadership through the service they provide. Along with this
company is commitment to safe guard people money order to make them live better (Hristov and
Reynolds, 2015). Walmart effectively Excel their value by developing and remarkable supply
chain management in which they move the product from supplier in a perfect time manner.
Walmart evaluated that Expectations and buying Behaviour of people tend to change in a quick
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manner so they extend their Markets and segments by bringing enterprise wide approach. In this
they take advantage of present Technology searches like internet to reach across the world and
expand their business in order to serve the changing customers. As Walmart is a multinational
company in terms of its influence and impart on the dynamic changes Corporation business and
Labour practice. Company have 3500 convenience shops in which they offer low price products
to their customers in order to improve its values by effectively providing satisfaction to
customers. Walmart drive three major points with the help of which the planning to gain more
attitudes towards customer some of these points include management of capital in a thoughtful
and disciplined manner, positioning the company to perform better job serving to their
customers. In addition with Walmart performing their functions with intrinsic values such as
respect for the individual in order to service to the people Act with integrity and strive for
excellence. In this regard Walmart believes that serving their customers in a best effective
manner is the company first and foremost priority. Along with this company believes that
everyone of Walmart associate must be respected. Company keeps on striving for Excellence by
continuously innovating different types of new innovative ways perform their functions to order
to improve the day to day activity. Walmart by bringing changes in there Walmart stores actually
trying to improve their reputation in order grab attention and make a positive impression on
young age Shoppers . Company make their young Shoppers feels and convincing them that
Walmart is moving on a great part in order to secure high tech position in a market place.
Are they differentiated enough against their core competitors? Why?
In order to maintain this tremendous growth in future Walmart conduct their functions
with a mission statement of “Save people wealth so they can live better”. For this company
created their new Walmart's new intelligent retail lab show in which those formative information
will gather which is related to what's happening in the store with the help of impressive display
of cameras, processors and sensors. This will effectively aid them to focus on their availability of
product inventory. It will benefit them to serve their customers with more efficiencies as by
taking advantage of their new lab they can evaluate real time information in order to explore
their product efficiencies along with this it will further help them to know the more precise time
to restock their products, so to avid any kind of inefficiencies on their shelves.
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What should they be doing to enhance their market position?
As Walmart is taking advantage of Everyday Low Price (EDLP) which will effectively
allow them to offer essentials on low prices to their consumers throughout the years. In order to
effectively increase their market position Walmart's is required to maintain their formative
strategy of low cost leadership firm which is in high demand in the large market. There some
prominent feature hold by company that includes remarkable supply chain and superior power of
bargaining over their suppliers (Pantano, 2014). In addition with this, in order to effectively
compete with their buyers Walmart can take further advantage of undifferentiated targeting
strategy in order to capture large base of market globally. Along with this by taking advantage of
effective inventory management System Company which will further help them to allow
suppliers to access their data.
CONCLUSION
Above mentioned report has been conducted on, Walmart which is a multinational
organisation conducting their functions in retail sector. There are different types of strategies that
have been utilized by company to further increase its overall profitability and productivity. In
addition to this, report include different types of price effective and cost effective methods that
can be used by organisation to increase their sustainability and effectiveness.
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REFERENCES
Books and Journals
Ayers, J. B. and Odegaard, M. A., 2017. Retail supply chain management. CRC Press.
Pantano, E., 2014. Innovation drivers in retail industry. International Journal of Information
Management, 34(3), pp.344-350.
Hristov, L. and Reynolds, J., 2015. Perceptions and practices of innovation in retailing:
Challenges of definition and measurement. International Journal of Retail & Distribution
Management, 43(2), pp.126-147.
Serrador, P. and Turner, R., 2015. The relationship between project success and project
efficiency. Project Management Journal, 46(1), pp.30-39.
Albrecht, J. C. and Spang, K., 2014. Linking the benefits of project management maturity to
project complexity: Insights from a multiple case study. International Journal of Managing
Projects in Business, 7(2), pp.285-301.
Betzing, J. H., 2018. Beacon-based customer tracking across the high street: perspectives for
location-based smart services in retail.
Pantano, E., Priporas, C. V. and Dennis, C., 2018. A new approach to retailing for successful
competition in the new smart scenario. International Journal of Retail & Distribution
Management, 46(3), pp.264-282.
Cao, L., 2014. Business model transformation in moving to a cross-channel retail strategy: A
case study. International Journal of Electronic Commerce, 18(4), pp.69-96.
Chou, Y. C., Chuang, H.H.C. and Shao, B.B., 2016. The impact of e-retail characteristics on
initiating mobile retail services: A modular innovation perspective. Information &
Management, 53(4), pp.481-492.
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