Key Strategies for Wal-Mart Canada
In order to compete the other online retailers in the market, Wal-Mart Canada should take an aggressive approach by providing special deals and offers to the customers. Provide attractive and motivating offers on the online store will turn the frequent lookers into buyers. One of the most important strategy in order to divert the traffic towards the website is online advertising and proper propagation and marketing of the launch of the online purchase site beforehand.
Aggressive advertising in this regard not on the internet but also on the local stores, as well as on the print and other electronic media channels will initially boost the internet traffic and hits to the website. The website should provide specialized contents also, which are only available when buying from the web channel. Many special schemes and deals should be advertized as the online sight only, which will force people to buy online and visit the website.
The opportunity of these visits should be utilized carefully by providing them a good overview of the website contents on the home page. As mentioned before, incentives like low pricing and free shipping as well as special deals on different occasions like Christmas will also boost online. The company should also increase its and should provide on demand provision of products regardless of their availability on the store or inventory. There should be picking up facility like provided by the Wal-Mart USA regarding pharmaceutical products.
All these incentives should be aggressively advertised and marketed. This will compel all those people who frequently use Internet to visit and buy the products from the website, but those who does not have the habit would feel compelled to make a visit to the online store. The targeted customers of the online store should be those technology-savvy people who do not have enough time to go shopping outside, either because they do not have time, or because they prefer shopping online.
Another key strategy is providing personalized shopping contents according to the customer’s profile, his likes and preferences etc. This personalization creates a sense of loyalty among the customers and there is a chance that the company would own the customer’s relationship, loyalty and finally advocacy. Providing personalized content has been the best way to convert the lookers into buyers. These incentives are among the core competencies of the company, which will develop the competitive advantage for the company in a market where there is stiff and unyielding competition.
Particularly Amazon. com, which originally started the business as an online book retailer is already in the Canadian market. This company provides a large variety of books including textbooks. (Amazon Canada, 2008) Moreover the company should also use the shared infrastructure atomic model by developing partnership with other online textbook retailers and form a giant alliance against other major competitors. Because the variety of textbooks is wide enough that it is not advisable for the company to keep large amount of inventory in this regard for a pilot project.
Once the project is a success the company can change the course adopting an aggressive direct-to-customer model. The company should also consider providing used books and the offer of reselling them if the customer’s wanted to. The main reason is because most of students prefer buyer a cheaper used book over buying a new but expensive book. (DeVito & Rempe, 2006) Another problem is to overcome the lack of profitability of the direct-to-customer e-business model.
According to Weill and Vitale (2001) there are certain factors, which may result in lack of profitability of the overall operation of this model. These factors include higher customer acquisition costs, lack of repeat customers and larger unit sales, abandoning shopping carts in the middle of the shopping etc. The company should also choose to sell more profitable products in the initial phase like software, music and videos where the cost of is close to zero. (Weill and Vitale, 2001)