Question

1. The growth rate in the grocery industry is 2.96% and American stores have the following shares: Vons/Safeway < 8% Target 3% Costco 8% Ralph’s/Kroger 15% Walmart 40% whole food <2%

And walmart has been in the grocery industry only 20 years. Walmart most likely entered the grocery industry in the early 1990s.

1. 1. To top new market development
   2. To penetrate the market of customers they already have an increase sales
   3. To benefit from new market development and expand both globally and attract domestic buyers previously did not reach
   4. To take advantage of the high growth rate and high race of profitability
   5. In order to diversity
   6. To benefit from new product development and attract buyer more frequently to the store.
2. the typical american family has all of the following buying characteristics except
   1. slightly more than 2 children
   2. has overlapping purchasing btw husband, wife, and children making increasingly more difficult to target the buyer precisely
   3. is either Asian-American or Hispanic-American
   4. is a single parent household
   5. spends more on their pets than on their children
3. Of all options for growth, the easiest depends on __ because ___.
   1. Penetration; it involves the least learning of consumer behavior and production technology
   2. New product development; managers can avoid the task of understanding a different set of consumer behaviors
   3. Penetration; there is the greatest profit potential
   4. New product development; the firm does not need to develop new distributions patterns and learn new infrastructure options.
   5. Diversification; managers are unencumbered by current product, technology, and buyers

Answer 1

Of all options of growth, the easiest depends on diversification because managers are unencumbered by current product, technology and buyers

Ans: Typical American family consumer behavior is different from other consumers in typical aspects, so to increase market share Walmart should focus on product differentiation which includes diversification as new product development involves deep learning of consumer behavior and best infrastructure and focused differentiation. Diversification can increase market share as managers can be unencumbered with new product, technology and buyers which makes them difficult and needs more employees. However, if they focus on new product development it would be an easiest way to improve the market share but managers should focus on creating best infrastructure and learning new consumer behaviors