Retail Marketing

1.

Introduction

This paper analyses the contention that large scale supermarkets such as Wal-Mart have been largely

successful through historically focusing upon a strategy of cost cutting and offering the retail

consumer a value based pricing proposition. In analyzing the case, this paper attempts to apply

multiple theoretical perspectives considering alternative possible approaches, such as differentiation

and a focus upon service quality as an alternative strategy to success.

At the time of writing, Wal-Mart had net sales of $419bn and operating profits in excess of $25bn

(Wal-Mart, 2011). While the business generates most of its revenues from US sources, the business

also has a number of international operations generating further revenues including operations in the

EU, China and wider South East Asia. Despite the skew in sales which is US orientated, in terms of

retail units, Wal-Mart is now a truly international business with 4,557 retail units outside of the US

complimenting the 3,804 retail units on US soil.

Despite the positive image painted by corporate representatives of the company in the annual report

(Wal-Mart, 2011), other sources suggest that the company suffers from a lack of public confidence

when it comes to issues of Corporate Social Responsibility. Wal-Mart has often stood accused of

imposing punitive commercial terms on suppliers, poor labour relations and causing environmental

damage (BBC News, 2011). All these negative points may be seen as derivatives of the cost cutting,

low price marketing model operated by Wal-Mart. As such, these problems encountered by the

company prompt this paper to investigate whether alternative retail marketing concepts may be more

appropriate considering both theoretical and empirical evidence to support the argument. (words 272)

2.

Key Concept Application

Porter’s (2004) proposed three generic strategies which may offer the best explanation as to WalMart’s current strategy and...