Case Study Essay
1. Brief History of Wal-Mart
Wal-Mart is “the giant chain of discount stores, the second largest company in the world, with over $400 billion in revenue and 2.1 million associates.” (Philip and Kevin, p94) Wal-Mart began its business in 1962 when Sam Walton, the owner of Wal-Mart, opened up his first discount store in Rogers, Arkansas (Philip and Kevin, p94). In the next two decades, Wal-Mart expanding its scale rapidly. Since 1990s, Wal-Mart started to opened up its store in other countries, from then, it started to become an international company. But in the first few years of 21st century, Wal-Mart met some problems in lawsuit, marketing plans, and employees. At 2007, a new marketing strategy …show more content…
When it comes to a company’s external capabilities, people would talk about their opportunities and threats. There are three opportunities for Wal-Mart, it can expanding its international market; it can using its good reputation to enter new communities and change a closer sales mode to encourage customers; it can also acquisition other retail stores and focus on Europe and Asian market (The Analysis of Wal-Mart, 2011).
But the threats exist at the same time, there are also three threats for Wal-Mart. First, when enter to a new country or area, the local policy would holds back the expanding of Wal-Mart. Also, as the biggest retail store in the world, the intense competition gives Wal-Mart more pressures to keep its good condition. Last, the culture differences among employees and the high-level manager would be another threat for Wal-Mart.
Body of the Paper 1. Statement of Marketing Problem
According to the case, people believed that the most important problem of Wal-Mart’s marketing problem is its positioning problem. As the expanding of Wal-Mart, it became the largest retail store in the world. If it still using the old marketing strategy to the customer, as known as “Always Low Price, Always”, it may losing some customers who have loyalty with, and also, because of the cause the conflict between employees and the managers. So, Wal-Mart made the positioning