Research Paper on Walmart: Pioneering Discount Shopping Since 1962

Introduction

Walmart is a store that was founded by Walton. He started the company which is now widely spread after where he was employed refused to employ what he was suggesting about giving products at a discount price. He, therefore, started his store in the local town where he offered products at a low discounted price. People have not enjoyed such a thing were happy, and thus they flowed to the place. With the masses of customers, Walton was able to open up more stores in different countries, therefore increase in his profits and revenues (Gastelum, pg.93-94). As a result of being the only one dominating the market, other people decided to open up similar stores. Thus the competition started.

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Walmart has outsmarted all its competitors through the following ways. It has employed new distribution channels where the suppliers are tracked to ensure they deliver the correct quantity of the product. It also provides that distribution is done at a particular time in a day to avoid unnecessary loss. There is no intermediary during logistics as commodities move from the inbound transport to the outbound directly; thus, no theft of products. It also has an automated system where guaranteed delivery is expected at a particular time with no failure (Gastelum, pg.93-94). Other competitor does not have any strategy for distribution; hence, Walmart's success.

Walmart also ensures that there is a perfect relationship between it and the suppliers. It gives them access to the current prices in the market so they can quote the appropriate amount. The negotiations are done openly with every supplier present to promote transparency and openness. It will result in increased loyalty with suppliers, thus a long-term contract. Suppliers are also able to identify their mistakes, thus improving their performance (Mcgee). Other competitors do not use the open method, thus can discourage potential suppliers from bidding. This has resulted in the big success of Walmart.

Walmart also has a unique way of human resource management, where employees are treated with respect and value. They are even referred to as associates. It encourages and motivates them to work for the benefit of the business. It will improve efficiency and performance while increasing productivity. With the right working environment and great employees, the company will make more profit and expand on its sale due to the drive by the workers. Proper human resource is another strategy that has ensured Walmart remains successful.

Reasons Target and Kmart have difficulty competing against Walmart

It has employed a unique marketing and merchandising strategy. Its focuses on the markets internationally while other company's concentrates on the local markets. International markets bring more revenue and increased sales, thus higher profits. It also has a tracking device that allows inspection is electronically done. It saves on time and labor, therefore, increased productivity. The tracking devices prevent theft and unnecessary loss of products (Kumar, pg.303-304). It also has unique sore formats where there is a full-line of grocery departments and specialty departments that deal with a particular type of commodity.

For Target to be active as Walmart, it has to do the following things; ensure that labor is allocated accordingly to avoid overworking some workers. It should also ensure that it implements the latest form of technology to ensure efficient and effective operations. It should also put in place good human resource practices where workers and staffs are appraised and rewarded accordingly. It should also make a point of concentrating on international markets to open up more ways for higher revenues.

The response of Walmart to threats and online purchases

Walmart faces threats from amazon.com due to lack of an online platform for purchases and business. The first recommendation is that it comes up with a social and online way where its customers can buy and order the products their need. It will increase their sales as the customers will be saved from transport costs which will make them buy more. People tend to be satisfied by door delivery services hence more customers.

The second recommendation is the use of advertisement where it will make the company more known and thus more customers. It will also increase the brand name and therefore, the awareness. When the customers are many, there is an increment in the sales and the higher the outcomes. It can also come up with some ads that contain the company labels which will help open up markets.

The last recommendation is that Walmart should sell all type of commodities and not only the grocery and the specialty. It should offer under-one roof services where most customers will be satisfied as the burden of moving from one store to another is minimized. It will increase the labor, and thus more products will be produced. It will also improve the performance of the business.

Works cited

Gastelum, Carmen Otilia Bocanegra. "Walmart: Competitive Crossroads in the Chinese Retail Market." Mexico y La Cuenca Del Pacifico, vol. 8, no. 22, Jan. 2019, pp. 89-120., doi:10.32870/mycp.v8i22.584.

Kumar, Rajesh. "Analysis of Wealth-Walmart." Strategic Financial Management Casebook, 2017, pp. 293-324., doi:10.1016/b978-0-12-805475-8.00010-0.

Mcgee, Robert W. "How Large Is Walmart? A Comparison of Walmart Sales to Nations GDP." SSRN Electronic Journal, 2018, doi:10.2139/ssrn.3102735.