Marketing Strategy Analysis: Walmart's Internal and External Factors

This report provides a detailed analysis of Walmart's marketing strategy, examining its internal and external environments. It begins with an introduction highlighting the importance of customer value in modern organizations and then delves into a SWOT analysis of Walmart, identifying its strengt...Read More

Running head: MARKETING STRATEGY ANALYSIS
MARKETING STRATEGY ANALYSIS
Name of the Student
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Author Note

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MARKETING STRATEGY ANALYSIS
Introduction
The modern organizations are able to operate in the industry with the help of value
which is provided to the customers. The customers are able to play a pivotal role in the ways
by which organizations are able to increase levels of profitability. Multinational organizations
also need to provide effective value to the customers in order to improve their position as
compared to its competitors. The report will be based on the analysis of the internal and
external environment of Walmart and the ways by which the company aims at providing
value to the customers (Ethiraj, Gambardella & Helfat, 2018).
Walmart Inc. is a multinational retail based organization which has its origins in the
United States of America. The organization is known for operating a huge chain of
hypermarkets, and discount based stores in different countries. The headquarter of Walmart is
located in Arkansas and was established by Sam Walton in the year 1962. The organization
has been able to establish more than 11,000 clubs and stores in 27 countries of the world.
Walmart has been able to become the largest organization in world based on revenues which
are generated (Walmart.com, 2018).
SWOT analysis of Walmart
SWOT analysis of the organization will be helpful in providing insights related to the
external and internal forces which have proved to be significant in development of the
strategy of Walmart. The factors can however change with time and the levels of growth of
the company are also able to affect the operations of Walmart. The strengths of Walmart can
be useful in exploitation of different opportunities. The factors related to different aspects of
Walmart are thereby able to affect the leadership of the retail organization as well (Doz,
2017).

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MARKETING STRATEGY ANALYSIS
Strengths – The major strengths of Walmart are based on the size of the business
organization. The organization is thereby able to withstand various levels of threats the which
are posed by its competitors. The global size of the company is able to provide Walmart with
huge amounts of funds for its expansion and growth. The organization is provided with
effective levels of resilience from different market risks with the help of its efficient supply
chain. The high efficiency levels of the global supply chain are considered to be major
strengths of the organization (Ethiraj, Gambardella & Helfat, 2018).
Weaknesses - The generic strategy which has been implemented by Walmart has led
to a major weakness of the company. The low levels of profit margins are considered to be an
effect of the implementation of cost leadership based strategy. The minimization of selling
based prices of the company is related to the levels of reliance on the sales based volume. The
lack of effective competitive differentiators is a major disadvantage (Frynas & Mellahi,
2015).
Opportunities – The opportunities which are provided to Walmart are related to the
levels of expansion and improvement of different business based practices. The opportunities
provided to Walmart are thereby related to global situation of the economy. The expansion in
different developing countries is a major growth based opportunity for Walmart. The
organization can further improve quality of products in order to attract more consumers
towards the stores (Hanson et al., 2016).
Threats – Threats which are related to business operations of Walmart are based on
the condition of retail market and changes which have taken place in the consumer
perceptions. The changes in consumer demands can lead to implementation of changes in
different competitive strategies. The major levels of threats which are thereby faced by the
organization are also related to the lack of prioritization provided by Walmart to different

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MARKETING STRATEGY ANALYSIS
healthy products in the stores. Aggressive levels of competition which are faced by Walmart
in the retail industry are able to pose huge amounts of threat to the company (Hill, Jones &
Schilling, 2014).
Marketing strategies of Walmart
The segmentation based marketing strategy can be implemented by Walmart in order
to divide group of consumers based on their preferences. The homogenous targeting based
strategy has been previously implemented by Walmart and can be further used by the
company in order to capture different customers. This can increase the levels of advantages
which are provided to Walmart based on its target market. The strategy related to marketing
which has been developed by the company is based on market positioning of Walmart.
Development of proper competitive advantage is also considered to be a major strategy which
is helpful in developing the position of Walmart and provide value to its customers as well
(Lasserre, 2017). The customers of Walmart are provided with utmost levels of importance
by the company which is related to the management of different operations. The distribution
related activities of Walmart can be improved in order to reach a larger group of consumers
within less amount of time. The improvement of distribution based strategy can play a key
role in proper levels of operations of Walmart (Morden, 2016).
Marketing objectives of Walmart
1st objective – The major marketing based objective of the implementation of the
strategies is based on the division of customer segments based on their likes and preferences.
2nd objective – The targeting based strategy can be implemented in order to offer the
effective products to the appropriate group of consumers.

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MARKETING STRATEGY ANALYSIS
3rd objective – The development of proper competitive advantage is based on the
sustainable operations of Walmart in the huge levels of competition which are provided by
different organizations.
4th objective – The development of effective distribution strategy can play a key role
in providing the products and services to the customers based on their preferences.
Marketing mix of Walmart
The marketing mix which has been developed by Walmart is mainly based on the
retail based business operations of the company. The organization has implemented cost
leadership related strategy in order to operate in the competitive retail industry. The
marketing mix which is used by Walmart is considered to be similar in different areas of the
world. Walmart thereby aims at providing high levels of value to the consumers with the help
of its marketing mix (Morschett, Schramm-Klein & Zentes, 2015).
Product – The retail service which is provided by Walmart is considered to be a
major product. The organization is able to attract the customers with the help of effective
services. The ease of shopping offered to the consumers is considered to be a major
component of products which are offered to them. The ways by which customers feel are
influenced highly by the sales personnel of the company.
Pros – The services which are offered to customers can thereby differentiate the
organization from its competitors in the industry. The company can develop its position in the
industry with the help of effective services (Rothaermel, 2015).
Cons – A major disadvantage of this aspect of marketing mix is related to the
differences between preferences of the customers. The levels of services which are provided
to the customers and their preferences can differ which can lead to a major disadvantage.

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MARKETING STRATEGY ANALYSIS
Price – The pricing strategy which has been implemented by Walmart is termed as
“Everyday Low Price” or EDLP. The pricing based strategy is thereby based on the ways by
which huge population of consumers can be attracted towards the products and services.
Pricing based component of the organization is helpful in the huge volumes of sales of
Walmart. The prices of Walmart have been able to contribute in a huge manner to the
competitiveness of the company.
Pros – The major advantage of this pricing strategy has been the increase in levels of
sales and revenues of Walmart (Wheelen et al., 2017).
Cons – A disadvantage which is related to the pricing strategy is related to association
of low prices of products with low quality.
Placement – Intensive levels of distribution based strategy have been able to provide
opportunities to Walmart to provide services to the customers. The responsibilities and roles
which are offered to the employees are also related to the choice of consumers. Walmart has
opened huge number of stores in order to reach the consumers.
Pros – The most important advantage which is provided by the placement of products
is related to the ways by which the company is able to reach huge number of customers
within less amounts of time (Madsen & Walker, 2015).
Cons – A disadvantage of this aspect of marketing mix is related to the lack of proper
services in all the stores of Walmart.
Promotion – The promotional mix developed by Walmart is mainly based on
different factors including sales promotions, advertisements, public relations and personal
selling. The special discounts and deals are used for the purpose of sales promotions by

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MARKETING STRATEGY ANALYSIS
Walmart. The organization also sponsors charity based programs which are also a part of the
promotional strategies.
Pros – The promotional mix plays a key role in developing the position of Walmart in
the industry and further increasing the levels of awareness as well.
Cons – A major disadvantage related to marketing mix of the company is based on
the development of appropriate promotional strategies for different customer segments
(Rothaermel, 2015).
Conclusion
The report can be concluded by stating that Walmart has been able to develop its
competitive position in the retail industry with the help of proper distribution and
promotional strategies. The objectives which have been set by the company are thereby based
on the ways by which Walmart can improve its position further with the help of effective
strategies.

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MARKETING STRATEGY ANALYSIS
References
Doz, Y. L. (2017). Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic
management. Strategic Management Journal, 39(6), 1529-1529.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Madsen, T. L., & Walker, G. (2015). Modern competitive strategy. McGraw Hill.
Morden, T. (2016). Principles of strategic management. Routledge.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Walmart.com (2018). [online] Walmart.com. Available at: https://www.walmart.com/
[Accessed 25 Nov. 2018].

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Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. pearson.