Question

Key differences of Walmart and Target as leading retailers

comparison of marketing strategies, organizational hierarchy, revenues, etc

Answer 1

Strategy – Walmart targets those customers who are less wealthy, are less urban and are a bit older when compared to customers being targeted by Target. Walmart markets and sells its products based on the strategy of cost leadership. Walmart makes use of its scale, efficiency, and size to establish a competitive advantage for itself in the market by having the lowest cost of operation. Target, on the other hand, uses the marketing strategy of differentiation. The company differentiates its products by creating an image of products that are economical but still stylish. Thus the company’s strategy is based on quality and not cost.

Organizational hierarchy – Walmart has a hierarchical functional organizational structure. The underlying features in case of Walmart’s organizational structure is hierarchy and function-based. There is a vertical line of command as well as authority in case of Walmart. Directives are issued at the top level. It is then implemented by the middle managers down to the junior employees. This is the hierarchy structure. The function-based structure at Walmart involves groups of employees fulfilling certain functions.

On the other hand for Target the organizational hierarchy is functional. The company is led by its CEO. There is an executive Vice President who reports to the CEO. Four Senior Vice Presidents report to the executive Vice President and they in turn are reported to by group Vice Presidents. There is a different division for every product category and there are divisions for apparels, jewelry, home appliances, furniture and sporting goods.

Revenue – For the year ended 2018 Walmart reported revenue of $500.34 billion. Target Corpration, on the other hand, reported a revenue of $71.879 billion for its last full reported year of 2017. Thus the revenue (or the top-line) of Walmart is around seven times that of Target Corporation.