How does Walmart implement its low-cost strategy?
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Walmart is unabashedly proud of
Walmart is unabashedly proud of its low-cost merchandise, stating on its website that "Every Day Low Price (EDLP) is the cornerstone of our strategy, and our price focus has never been stronger."
Research conducted in the United States shows that 90 percent of people living in the country live near at least one Walmart store. In other words, there are so many Walmart stores in America that people can find a Walmart shopping center anytime, anywhere, within a short period of time. This fact shows how popular Walmart is in the United States. Now let's go back in time and see how the "Walmart" company was founded for
the first time and the secrets of its success. "Walmart" was founded in 1962 by the famous businessman Sam Walton in the state of Arkansas, United States of America. What inspired Sam Walton to take such an important step in his own business was the income from his small store
that he opened back in the 1950s. Thus, from the end of the 1960s, the name "Walmart" gradually began to be known more and more in America. Over time, "Walmart" expanded its scope and became an international company. To put it more clearly, "Walmart" branches began to open in different parts of the world. And thus the reputation of the company increased not only in America, but also in several other countries.
So what made Walmart different from its competitors? Why do customers choose Walmart over thousands of retailers? So, "Walmart" company has been using a strategy that its competitors think is impossible in business from the day it first entered the business field. This strategy was "low price, high service and quality" strategy. From the first day of its operation, the company began to sell its goods at a cheaper price than that of
its competitors. At first, competitors thought that this strategy of "Walmart" would lead the company to bankruptcy. However, this strategy produced an unexpected result. So, aside from the rapid increase in the number of customers of "Walmart", at the same time, the customers of competing companies also began to decrease. Thus, "Walmart" became famous all over the world, especially in the United States of America, for its low prices. It was not by chance that the company's website was chosen as "Everyday Low prices". So how did Walmart not go bankrupt by keeping prices so low? According to research, when the company was first established, the overall average revenue from sales was low because of the low price of the product. As a result, "Walmart" paid its employees lower than competing companies. However, over time, the popularity of "Walmart" has increased many times compared to previous years. After that, the company slightly increased the wages of its employees. One feature that makes Walmart different from competing companies is that the "cheap product" strategy means that other companies mean discounts on certain products for a temporary period. For example, the famous company "Amazon" lowers the prices of various products, such as food, clothes, etc., when using the "cheap product" strategy. However, in the case of "Walmart", this strategy is continuously implemented. Additionally, according to 2018 statistics, Walmart products are 34 percent cheaper than Amazon products.When we look at the given examples, we better understand the success of the retail company "Walmart". Because in our everyday shopping, even when we buy bread on our way home, we compare the prices in different stores in our minds and then come to a final decision. If we consider that this is the case for most customers, we will better understand the reason for the popularity of the retail
company "Walmart" in the world: low prices and high quality. On the other hand, as mentioned by Sam Walton, another reason for the success
of the company is the support given to it by its partners in different parts of the world. Walton also mentions in his interviews that the low price strategy would not be so effective if there was no cooperation with other companies. These words of Walton indicate how important cooperation and partnership are in business.
#marketing #walmartlowcoststrategy #walmart #lowcoststrategy
Boost your Retail marketing skills with our course: https://easymarketingschool.org/cours...
Research conducted in the United States shows that 90 percent of people living in the country live near at least one Walmart store. In other words, there are so many Walmart stores in America that people can find a Walmart shopping center anytime, anywhere, within a short period of time. This fact shows how popular Walmart is in the United States. Now let's go back in time and see how the "Walmart" company was founded for
the first time and the secrets of its success. "Walmart" was founded in 1962 by the famous businessman Sam Walton in the state of Arkansas, United States of America. What inspired Sam Walton to take such an important step in his own business was the income from his small store
that he opened back in the 1950s. Thus, from the end of the 1960s, the name "Walmart" gradually began to be known more and more in America. Over time, "Walmart" expanded its scope and became an international company. To put it more clearly, "Walmart" branches began to open in different parts of the world. And thus the reputation of the company increased not only in America, but also in several other countries.
So what made Walmart different from its competitors? Why do customers choose Walmart over thousands of retailers? So, "Walmart" company has been using a strategy that its competitors think is impossible in business from the day it first entered the business field. This strategy was "low price, high service and quality" strategy. From the first day of its operation, the company began to sell its goods at a cheaper price than that of
its competitors. At first, competitors thought that this strategy of "Walmart" would lead the company to bankruptcy. However, this strategy produced an unexpected result. So, aside from the rapid increase in the number of customers of "Walmart", at the same time, the customers of competing companies also began to decrease. Thus, "Walmart" became famous all over the world, especially in the United States of America, for its low prices. It was not by chance that the company's website was chosen as "Everyday Low prices". So how did Walmart not go bankrupt by keeping prices so low? According to research, when the company was first established, the overall average revenue from sales was low because of the low price of the product. As a result, "Walmart" paid its employees lower than competing companies. However, over time, the popularity of "Walmart" has increased many times compared to previous years. After that, the company slightly increased the wages of its employees. One feature that makes Walmart different from competing companies is that the "cheap product" strategy means that other companies mean discounts on certain products for a temporary period. For example, the famous company "Amazon" lowers the prices of various products, such as food, clothes, etc., when using the "cheap product" strategy. However, in the case of "Walmart", this strategy is continuously implemented. Additionally, according to 2018 statistics, Walmart products are 34 percent cheaper than Amazon products.When we look at the given examples, we better understand the success of the retail company "Walmart". Because in our everyday shopping, even when we buy bread on our way home, we compare the prices in different stores in our minds and then come to a final decision. If we consider that this is the case for most customers, we will better understand the reason for the popularity of the retail
company "Walmart" in the world: low prices and high quality. On the other hand, as mentioned by Sam Walton, another reason for the success
of the company is the support given to it by its partners in different parts of the world. Walton also mentions in his interviews that the low price strategy would not be so effective if there was no cooperation with other companies. These words of Walton indicate how important cooperation and partnership are in business.
#marketing #walmartlowcoststrategy #walmart #lowcoststrategy
Boost your Retail marketing skills with our course: https://easymarketingschool.org/cours...
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