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Introduction
The main goal of any company is to obtain a consistently high return on invested capital. For investment profitability to be higher than that of competitors, the competitive advantage over them must be stable; in other words, the quality of goods and services provided to consumers must be higher. Walmarts strategy depends on defining objectives, a competitive advantage, the resources, and production capabilities that ensure sustained excellence in this changing world.
The organizational mission is the following: helping people around the world save money and live better anytime and anywhere in retail stores and through eCommerce (Cuofano, n.d., para. 1). Walmarts vision statement is making every day easier for busy families (Cuofano, n.d., para. 1). The long-term objective of the company is expressed in its mission and vision. Walmart aims to sustain a low-priced strategy to serve busy families and save money for them while being presented anytime and anywhere across the US and leveraging knowledgeable employees to help customers. Among other long-term goals are enhancing economic opportunities, expanding sustainability measures, and strengthening local communities (Walmart, 2018). The Walmart Great Value product line long-term strategy should also be built on general long-term objectives.
The companys short-term goals are the adjustment of market strategy due to COVID-19, the development of the plan for the Great Value product line, stretching the supply chain, and emphasizing e-commerce channels (Souza, 2020). To survive the competition and increasing pressure from online retailers, Walmart aims to support its employees well-being during a challenging time in the US and ensure that prices of its products are affordable and of good quality. Thus, the company should have a flexible strategy to connect short- and long-term goals.
The 5 S Model of Walmart
To address the companys objectives and compete against other companies, Walmart should have a clear marketing plan for its product lines and services. The 5 S model helps to identify five main areas the organization to focus on creating a value chain for customers. The first area is sell which reflects companies objectives to grow market share and sales. Here, Walmart aims to sell almost everything near customers and achieve affordable prices in the future. The short-term aim is to reduce the GReat Value product prices of products by 5% while retaining the existing profit margins during COVID-19.
The second main area is serve which aims to add value through customer service. Walmart is focused on the customer and provides buy-online-pickup-in-store and delivery services, training employees to help clients choose goods and sustainability value that contributes to customer experience (Petro, 2020). The third area is sizzle, which implies that a company should have a wow factor to amaze clients. Walmart continues to expand its online service, e-commerce shop, and express delivery options with the combination of low prices have a wow effect on customers. Moreover, the diversified portfolio of services, including grocery shopping, gas stations, online retail stores, and a loyalty program that provides discounts, boost customer amazement (Walton, 2020).
The fourth main area is the speak aim that implies the necessity to get closer to customers through frequent communication and the spread of news. Walmart continuously implements different advertising and communication campaigns for new and existing customers with emails, offline banners at stores, co-branding activities, and other activities ( About Us, n.d.). The fifth goal is to save aimed to make time and cost savings. Walmart improves its supply chain management, which is one of the core management areas of the company. The organization revises its operating costs and negotiates with suppliers the price of goods to relocate financial resources and achieve marginal activities (Hyde, 2019).
The Strategy of the Company
The strategy helps Walmart identify how to get from the current situation to the long and shortterm objectives. Here the areas of segmentation, targeting, and positioning (STP), online value proposition (OVP), sequence (credibility before visibility), integrations, and tools should be reviewed. The segmentation of Walmart is primarily based on customer income lever as the organization aims to sell everything anytime and compress various products in a single location. Thus, the segmentation includes four types of stores: discount stores, Walmart Supercenters, Sams Club warehouses (selling bulk items), and neighborhood markets (Hyde, 2019).
Walmart utilizes an undifferentiated targeting strategy to serve the market globally despite highlighting the focus on busy households. The positioning of the organization is specific: its focus is on providing the lowest price for customers and using a pricing advantage in comparison to competitors (Bhasin, 2017). Walmarts online value proposition is based on delivery and pick-up in-store services with specific loyalty programs and discounts that combine online and offline offers, which are convenient for clients and stand out for people ( Our History, n.d.).
Conclusion
To address the marketing sequence (credibility before visibility), Walmart has a unique approach because Walmarts brand is widely known, and it is also associated with the Great Value product line.
Therefore, Walmarts products credibility should be supported by the good quality of goods, while its price is already competitive. The integration and tools that can help the company promote its products, support existing and launch new lines are co-branding activities (Steenkamp, 2017). Engagement with new audiences via social media channels, evaluation of product performance, supply chain management, and employees skills improvement can also help to combine marketing and the strategy (Smith, 2011). To sum up, Walmart can successfully achieve its goals if it will strictly assess its activities and engage with new audiences.
References
About us. (n.d.). Walmart. Web.
Bhasin, H. (2017). Marketing strategy of Walmart. Marketing91. Web.
Cuofano, G. (n.d.). Walmart mission statement and vision statement in a nutshell. FourWeekMBA. Web.
Hyde, R. (2019). How Walmart model wins with Everyday low prices . Investopedia.Web.Â
Our History. (n.d.). Walmart. Web.
Petro, G. (2020). Walmart challenges amazon with less is more strategy. Forbes. Web.Â
Smith, P. R. (2011). The SOSTAC Guide to writing the perfect plan. Web.
Steenkamp, J. B. (2017). Global marketing mix decisions: global integration, not
standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Souza, K. (2020). McMillon notes changes in his tenure as Walmart CEO. Talk Business & Politics. Web.
Walmart. Walmart highlights economic, societal and environmental progress in 2018 global responsibility report summary. Web.
Walton, C. (2020). Walmart may have just one-upped Amazon with Walmart+. Forbes. Web.
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