Homework Question on Walmart Corporation
- Experts have defined a brand as “a set of differentiating promises that link a product to its customers.” Applying this framework to your organization, What are your organization’s differentiating factors that set it apart from its competitors or other organizations?
- How does your organization communicate these factors to customers, employees and other stakeholders?
- If you were the CEO of your organization, how would you change these communications to make them more effective? I work with Walmart and the discusssion should surround Walmart.
Homework Answer on Walmart Corporation
Walmart applies various differentiating factors and strategies that have helped it win over its competitors in the market. Walmart has been appearing on the list of annual release as the world largest retail brand. The company has applied a combination of cost leadership and product differentiation strategy to compete with its competitors in the market and the new entrants in the industry. The company provides superior products and services to its customers than the competitors and prices them at a lower cost to its clients than the rivals could (Barney, 2011).
Walmart Corporation invests in research and technology to find ways in which it can lower products costs. The strategy of lower prices has succeeded with the company considering ways of successful completion of basal and support actions, cut down costs and simultaneously upholding competitiveness level of products differentiation. Application of a well flourishing supply chain management has played a critical role in helping the company implement factor of cost leadership strategy.
The company also uses the stock control method of just-in-time. This has lowered Walmart’s inventory holding costs hence charging lower prices to its customers. The company has benefited from the advantages of large economies of scale. As a result, it uses the buyer power on its suppliers hence lowering buying prices which is reflected to its customers (Porter, 2008). The company has communicated its value to customers, employees and the associates through its corporate culture of believing that a retailer could assist people save money and consequently lives a better life.