Brief Overview of Project
The basic purpose of this research project is to provide a brief overview of launching a new product for Wal-mart stores with an emphasis on its online promotional methods and IT strategy. It will also highlight the process of creating brand identity and differentiation for newly created product. It will also elaborate brand building strategies along with strong internet presence for this new product. This research project is an attempt to inline new product launch efforts with overall strategic and corporate objectives of Wal-Mart.
Detailed identification of short and long term organizational goals along with industry and competitive analyses is considered necessary for the completion of this research report because it will facilitate in development of more rigorous management strategy regarding 4 Ps of the newly developed product. Analyze the Organization Mission & Objectives: Wal mart is the largest retail store in US. Its strategic objectives are divided into two types of goals namely short term goals and long term goals. Wal Mart short term goal is to make their customer visit at Wal-Mart stores a satisfactory experience.
Wal-mart long term objective is to retain its customers repeat purchases through customer loyalty. That is due to the fact that repeat purchases create brand loyalty and it is always difficult for competitors to attract this segment of target market. “Americans spend $26 million “every hour” at Wal-Mart, twenty-four hours of every day, every day of the year. ” (Charles Fishman, 2006) It also aims at managing its operations at minimum to offer lowest possible prices to its consumers both nationally and globally.
Strategic Orientation: “Strategy emerges from mind-sets which are changing over time – global and local issues are capable of synthesis. ” (Peter Buckley and Pervez N Ghauri, 2004: pgs 87) Wal-mart strategic orientation is associated with the principal of quantity. Its corporate strategy revolves around the fact that if quality goods are provided at low cost to consumers than volumes of sales will increase which will increase profitability of Wal-Mart.
It business philosophy is based on low per unit profit margin but large number of units sold to masses which ultimately increases overall profitability of Wal-mart. Company Analyses: The country of origin for Wal-Mart is United Sates of America. The company is having its stores all over the world through its subsidiaries and acquisitions. Due to cost effective and economical business model, it is having advantage over competitors. Wal-Mart stood at 1st position among Fortune 500 companies due to its huge volume of sales.
“Certainly Wal mart’s annual income as the modern world’s wealthiest corporation is well above the gross domestic product (GDP) of most sovereign states. (Stanley D. Brunn, pg 3, 2006) Wal-mart employs more than a million employees in its stores. It is among the largest employer in retail industry as it employs almost 1%of total US work force. “Sam Walton [owner] believed that a happy employee meant happy customers and that a happy customer of course meant more sales.
” (Michael Bergdahl, pg 119, 2004) Wal Mart also aimed at reducing its cost and operating expense to minimum. The extend of cost saving culture at Wal Mart could be identified with the scenario that “The associates at Wal-mart spend company money as if they were writing the checks out of their personal checking accounts. ” (Michael Bergdahl, pg 119, 2004) The substitution affect for a company in retail business is higher if vendors are having bargain power. But incase of Wal-mart, vendors posses very weak bargain power over this giant retailer.
Wal-Mart does not have any fear from its vendors to stop their supply and move towards another competitor because no other retailer has volume of orders comparable to Wal-Mart. Instead vendors are scared about circumstances those will arise if Wal mart will consider another vendor at their place. Bargaining power of customers is also lower than Wal mart because customers are already getting extremely low cost goods therefore they cannot ask for more discounts. Wal mart offers lowest prices for branded products. Customers need to come back to these stores for repeat purchase because it gives best value to their money.