Question

In 300 words or more please explain why you believe Wal-Mart is so successful?

Answer 1

Wal-Mart is successful, because the retail chain giant knows what is demanded by the consumers and it has served that exactly what is and in their own budget. It increased the flow of customers that started first in smaller areas and then moved to cities and this trend is the reverse of other brands where they open their stores in bigger cities and then move down to the smaller cities. Further, Wal-Mart has identified a target audience that is price conscious, but demands quality as well. For these consumers, Wal-Mart created long term contracts with suppliers in countries like China and built its own white label brands for these people. These owned brands offered similar quality, but at a lower price. It made these brands to be super-hit among the consumers and Wal-Mart reaped the reward. While doing so, Wal-Mart did not ignore the premium segment rather to attract these people, best brands were offered with premium customer services to make differentiation. It made Wal-Mart to be a house hold name in the region. Carefully planned expansion and setting up distribution centers across the country and in different areas, ensured that products are delivered on time and promises are kept and it won confidence as well.
Besides, in the backend, Wal-Mart ensured that vendors and suppliers don’t compromise in quality, replenish the stock on time and bring ethical practices in their own setup so that Wal-Mart remains popular in ethical parameters as wells. Leaders in Wal-Mart ensured to visit stores on a regular basis, resolve the problems faced by employees and made policies that could make their employees to be happy as well. It made Wal-Mart to implement stakeholder approach in the organization and society and developed goodwill in the communities. It added sustainability to the success of Wal-Mart. So, they are so successful.