Answer To: Exam ContentThis assessment starts your Strategic...
Asif answered on Mar 21 2023
Strategic Marketing Plan
Page 16 of 16
Strategic Marketing Plan
Part A: Environmental Analysis and SWOT Analysis
(Due in Wk 2)
Walmart is American multinational retail corporation. The company operates a chain of hypermarkets, grocery stores and discount department stores in USA. The company is well-known for its low-cost pricing in the market. For case, the Company is known for its "Everyday Low Prices" strategy, which emphasizes low-cost operations and high volume sales to offer customers low prices on a wide range of products. The company was founded by Sam Walton 1962. Walmart has also expanded into other areas, including e-commerce, financial services, and healthcare. The company's e-commerce platform, Walmart.com, offers a wide range of products for online purchase and delivery, including groceries, electronics, clothing, and household items.
(Worldwide revenue FY2012- FY2023)
The above statistics shows company’s financial health from 2012 to 2023. This reflects that in the financial year ended 31st January 2023, the company generated $611B. Compared to a year earlier, the company’s revenues increased by 7%. Hence, it is considered one of the most valuable retail brands in the world.
Describe the company you are designing the plan for. Include:
· Mission Statement: Helps people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.
· Vision Statement: Be THE destination for customers to save money, no matter how they want to shop.
· Product Line Description: The Company operates under various banners, including Walmart, Sam's Club, and Walmart International, and offers a wide range of products and services, including groceries, apparel, electronics, home goods, and financial services.
· Company information, such as the size of the company: Walmart is one of the leading, largest, reputed and fast growing American multinational retail corporation in terms of revenues, number of employees, and market share. According to the recent financial report 2022, the company has more than 10,600 active retail stores and clubs in 27 countries. It employs more than 2.3 million associates worldwide.
Environmental Analysis is also called environmental scan which is a strategic planning tool used by a company to analyze its internal and external factors affecting business environment.
Walmart faces competition from a variety of retailers like Amazon, Target, Costco, and Alibaba. Using a BCG Matrix, Walmart would likely be classified as a "cash cow," as it is a large, established company with a stable market share in the retail industry. However, Walmart has been investing heavily in e-commerce and other growth opportunities to maintain its position in the market. In terms of market share, Walmart is the largest retailer in the world, with a market share of around 10% of global retail sales. In the United States, Walmart's market share is around 20% of all retail sales.
(Figure 2: BCG Matrix)
Walmart has several competitive advantages over its competitors, including its vast physical retail presence, its low prices, and its supply chain management. Walmart has been investing in technology and e-commerce to improve the shopping experience for customers and to better compete with online retailers like Amazon. Walmart also has a strong private label brand strategy, with several successful brands like Great Value and Equate. Recently, Walmart has made strategic moves to expand its e-commerce capabilities, including the acquisition of several online retailers like Jet.com and Bonobos. Walmart has also been experimenting with new technologies, like autonomous delivery vehicles and AI-powered shopping assistants, to stay ahead of the competition.
Walmart's revenue is highly dependent on consumer spending, which can be affected by factors such as job growth, wage levels, and economic confidence. A strong economy and high consumer confidence can lead to increased spending and sales for Walmart, while a weak economy and low consumer confidence can have the opposite effect. Walmart's supply chain is extensive, and changes in economic conditions can impact the cost and availability of raw materials, transportation, and labor. Economic factors such as inflation, interest rates, and exchange rates can also impact the cost of doing business for Walmart. Walmart operates in multiple countries and is impacted by economic conditions and regulations in each market. For example, changes in trade policies or currency exchange rates can impact the cost and availability of products for Walmart.
Changes in trade policies, such as tariffs or sanctions, can impact Walmart's supply chain and affect the availability and pricing of products. Walmart must stay up to date on changes in trade policies and adjust its operations accordingly. Changes in tax policies, such as corporate tax rates, can impact Walmart's profitability and financial performance. The company must navigate various tax regulations and laws to minimize tax liabilities and remain competitive. Changes in labor policies, such as minimum wage laws or regulations on employee benefits, can impact Walmart's labor costs and workforce management. The company must comply with various labor laws and regulations to avoid legal issues and maintain a positive reputation. Walmart has faced criticism and scrutiny over its political lobbying and activism, particularly around issues such as gun control and healthcare reform. The company must navigate various political forces and public perceptions to maintain a positive reputation and avoid backlash
Legal, Regulatory, and Ethical Issues
Legal, regulatory, and ethical issues pose significant challenges for Walmart's business operations. The company must remain vigilant in complying with various regulations and standards, addressing ethical concerns, and promoting sustainable and responsible business practices. For case, Walmart has faced criticism and legal challenges over its labor practices, including allegations of low wages, inadequate benefits, and violations of workers' rights. The company has had to navigate various labor regulations and laws to ensure compliance and avoid legal issues. As a major retailer with a significant environmental footprint, Walmart has faced scrutiny and regulatory pressure to reduce its environmental impact. The company has implemented various sustainability initiatives and programs to reduce waste, conserve energy, and promote sustainable practices. Walmart has faced criticism and public backlash over various ethical issues, including allegations of bribery, corruption, and labor abuses in its global supply chain. The company has implemented various measures to address these issues and promote ethical business practices.
Walmart is a leading and reputed company that has been heavily impacted by emerging technologies in the hardware and software industries. The rise of e-commerce has been a major trend in the retail industry, and Walmart has had to adapt to this trend to remain competitive. Walmart has invested heavily in its online platform, expanding its product offerings, and improving its delivery and pickup services. The availability of big data has enabled retailers like Walmart to gain valuable insights into consumer behavior and preferences. Walmart has invested in big data analytics tools to analyze customer data and make more informed business decisions. Cloud computing has enabled Walmart to store and process large amounts of data and to scale its computing resources as needed. Walmart has migrated many of its systems to the cloud to improve scalability and efficiency. Walmart has also been exploring the use of AI in its operations, including using AI-powered robots to perform tasks such as cleaning floors and restocking shelves.
Consumer preferences can influence Walmart's product offerings and marketing strategies. For instance, there has been a growing demand for products that are made in the USA, and Walmart has responded by launching a "Made in the USA" campaign to promote American-made products. Social values and consumer preferences can change over time, and Walmart has to stay attuned to these changes to remain relevant. For example, there has been a growing interest in sustainable and ethical products, and Walmart has responded by offering more eco-friendly and fair trade products. Walmart has invested in technology to enhance its online presence and customer experience. Walmart's online platform and mobile apps enable customers to shop and make purchases from anywhere at any time. Walmart has to adapt its marketing and product offerings to cater to different age groups and ethnicities. For example, Walmart has launched marketing campaigns targeting Hispanic consumers, and it has increased its offerings of organic and natural foods to appeal to health-conscious consumers.
Current Target Markets
Walmart's current target market can be broadly defined as consumers who are value-conscious...