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Strategic management Essay

The company under it preconceived strategy of low prices strategy must have strong customer base. Such is incidentally a fact. Wikipedia, (2007) confirmed this when it said that Wal-Mart is a global company with a diverse customer base and that the company customers place low prices as the most important reason for shopping at Wal-Mart and the company in its Financial results in 2006 have indicated Wal-Mart customers are sensitive to higher utility costs and gas prices. [36] (paraphrasing made) To expand customer base, what should interest the company is the characteristics of its customers extending as far as studying demographic trends.

Wikipedia (2007) confirmed that in the United States, it has been reported that eighty percent of residents of the United States shop at Wal-Mart at least once a year and that each week, 100 million customers visit Wal-Mart’s U. S. stores and this is more than one-third of the U. S. population. paraphrasing made). Its great interest to its customers extended studying demographic trends. This fact is again by Wikipedia (2007) by saying, “Frequent Wal-Mart customers show some demographic trends. In the U. S. , Wal-Mart customer’s average incomes are below the national average.

Analysts have estimated that more than

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one-fifth of Wal-Mart’s U. S. customers have no bank accounts, twice the national rate. [39] Polling Data reported by John Zogby suggests there is a correlation between how often consumers shop at Wal-Mart and how conservative they are. In the 2004 US Presidential election 76% of voters who shopped at Wal-Mart once a week voted for George W. Bush while only 23% voted for John Kerry. By contrast 80% of voters who never shopped there voted for Kerry with 18% voting for Bush.

African American and Hispanic voters who shop there are described as “significantly more conservative” than their non Wal-Mart shopping peers. When measured against other similar retailers in the United States, Wal-Mart frequent shoppers were rated the most politically conservative. [40] This also roughly correlates with the geographic distribution of Wal-Mart stores, as the company has yet to significantly penetrate major urban areas, which tend to be less conservative than suburban and rural areas, where most of Wal-Mart’s stores can be found.

” In its effort to expanding customer base, Wikipedia explained, “Wal-Mart has recently taken actions to expand its U. S. customer base. On September 7, 2006, the Wall Street Journal reported that Wal-Mart was modifying its U. S. stores from a one-size-fits-all merchandising strategy to a custom-fitting merchandise assortment designed to “reflect each of six demographic groups — African-Americans, the affluent, empty-nesters, Hispanics, suburbanites and rural residents. “

The company’s appreciation of importance of strategy is also reflected in its adoption of Wal-Mart’s private label store brands which include: Great Value, Equate, and Sam’s Choice. The company’s obvious orientation with private levels was of course validated in a 2006 study where the Hartman Group marketing research firm made report finding that while it noted the success of other retailers, it was struck by the magnitude of mind-share on Wal-Mart appeared to have hold in shoppers’ minds when it comes to awareness of private label brands and retailers [44] (Paraphrasing made) (Wikipedia, 2007) (Paraphrasing made).

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