Essay Sample on Walmart: A Leader in Low Prices and Quality Goods Worldwide

Introduction

Walmart is a renowned leader in the world in providing all types of products to its clients all over the world. Walmart, as a retail firm, specializes in the provision of goods at a low price, and the firm has grown steadily since its inception because of its friendly costs and leadership strategy (Johnson, 2016). A majority of retailers that compete with Walmart but could not beat it in terms of the prices. Walmart, as a retailer, has its primary focus on the low prices for its commodities to the clients. It also provides high-quality goods to their clients, which makes it a reliable firm and wins the loyalty of the clients. In normal circumstances, a majority of the people link low prices on commodities to poor quality, a mentality that Walmart rubbishes. Therefore, Walmart has been able to successfully apply the strategy of low-cost leadership, which has been a critical pillar in its success.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

When Walmart rolled out its operations, it became the first organization to provide its consumers with products of all kinds. The primary focus of Walmart has been to provide its clients with goods that are world-class in terms of quality and prices that are friendly to the clients. Being able to sustain the competitive advantage is crucial for organizations, and hence Walmart based its competitive edge on providing low prices to high-quality goods (Johnson, 2016). Looking at the competition that is present in the retail market, it is imperative to note that Walmart has been in a position to satisfy its clients on a regular basis and without fail. Their objective of felicitating their clients has been able to give them vast benefits and has led to the success story of the firm. Walmart bases its operations on complimenting the clients.

The focus of Walmart retailers on providing world-class and quality products to their clients alongside their economic and friendly cost makes them leaders in the market worldwide. When their consumers know that they will get quality products at low prices, they tend to develop loyalty and would never go looking for these products from other retailers (Valipour, Birjandi, & Honarbakhsh, 2012). As a result, the firm continues to have more and more customers who are critical to the success story of Walmart. Due to this, Walmart has a standardized nature of products, which has facilitated several organizations to team up and sell their product through Walmart. The success of this firm has been based on its successful application of cost leadership, which is a tool that is essential in winning customers as well as enhancing their loyalty (Valipour et al. 2012). As a result, the firm gains a mammoth embrace from customers all over the world who have been significant in the success story of Walmart retailers.

To enable it in the provision of quality goods at low prices, Walmart focuses on operations that focus on the value chain. It means that Walmart focuses more on the generation of value through its services, whereby consistently improving the efficacy of value activities, it achieves a cost reduction by a vast margin (Valipour et al. 2012). As a result, even if it sells its products cheaply, it does not incur losses as the initial cost of acquiring the commodity was reduced. Many firms have tempted entering untapped markets without success, but Walmart has been able to achieve that. Walmart is an outstanding retail firm as it is not only local in its operations but also global, where technology has been another factor for its success. The use of technology that Walmart employs gives it an outstanding value as it also facilitates cost reduction, which in turn promotes lower prices of goods to their consumers. Therefore, the use of a cost leader strategy must not be underrated, as this is the strategy that has seen Walmart becoming successful and sustaining its competitive advantage against its opponents.

The strategic focus is critical as it tends to concentrate all the ideas and finances of a firm towards achieving a specific objective. Walmart uses the cost leadership strategy where it ensures that the prices it offers for its commodities are friendly, and the quality of its goods is also acceptable. As a result, Walmart focuses on a narrow market focus, which enables it to sustain its low prices while maintaining the quality of the goods they sell to their clients. This is evident when we see that there is an alignment of the clients who continuously engage with Walmart (Hemmatfar, Salehi, & Bayat, 2010). which gives the firm a competitive advantage over their competitors. Narrow market focus is a strategy that assists Walmart in its transactions as it does not have a large center in the market since it is only interested in selling retail products to its customers while concentrating on reduction to increase its competitiveness.

Additionally, a firm that has a narrow market focus rarely seek to advertise their businesses as their concentration is on a smaller are. Walmart does not engage in massive advertisements, and this helps them to save on the money that it would have otherwise spent on adverts and directs it into other matters that affect it (Hult, 2011). Walmart focusing on a narrow market has gone a long way in making them reduce their cost and acquire high-end technology facilities that assist it in its daily operations, leading to its outstanding story of success.

Conclusion

Overall, having a working business strategy such as cost leadership, which involves providing quality goods and services to the clients at a lower price, goes a long way in influencing more clients into the firm, which is the beginning of the success of a firm. Additionally, narrow market focus is vital as it allows the firm and its management to have their focus being on what they are doing where they put much of their concentrations into the business instead of subdividing their attention among several other ventures. The narrow market focus employed by Walmart has significantly contributed to its success.

References

Hemmatfar, M., Salehi, M., & Bayat, M. (2010). Competitive advantages and strategic information systems. International Journal of Business and Management, 5(7), 158.

Hult, G. T. M. (2011). Market-focused sustainability: market orientation plus!.

Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.

Valipour, H., Birjandi, H., & Honarbakhsh, S. (2012). The effects of cost leadership strategy and product differentiation strategy on the performance of firms. Journal of asian Business strategy, 2(1), 14.