Wal_Mart_and_the_Community

Abstract Wal-Mart’s strategy is to take on the world one city at a time. At Wal-mart, they believe in a philosophy of operating globally and giving back locally. They understand the impact on communities by supporting causes that are important to the customer’s right in their own neighborhoods. Wal-Mart states that they are proud to be a "store of the community" for all of the communities we serve (Wal-Mart 2010). It all began when the first store opened in 1962 in Rogers, Arkansas. The goal of the company was to provide the consumer with a quality product at a fair price. The goal is still in effect today. The company employs in excess of 700,000 employees in more than 3,000 stores worldwide. Wal-Mart is a huge asset to any community. What marketing research strategies do they employ' The four strategies Wal-Mart uses are planning, organizing, leading and controlling. The impacts the control mechanisms have on these functions of management are impressive. The company knows what its consumer wants, which is to save especially in these tough times. The planning of items to be sold is clear. Sell what the competitor has at a lower price. The organizing of the products is concise, as the organizational team knows what is and what is not on the shelves and what and when the product needs to be replenished. The leading function is admirable. The employees seem happy when a consumer enters the store and I have never heard an employee complain about management as I do at other retailers. Lastly is controlling. The controls that are in place through Wal-Mart’s mission and business practices are impressive as I, as the consumer, know that I am receiving the highest quality product and the lowest possible price, guaranteed. In what way does Wal-Mart strengthen their relationship with consumers' The positive impact of having a Wal-Mart located nearby are that the Wal-Mart store brings in customer traffic and those businesses that are located nearby also get more customers. The footfall increases leading to improved business in the area. The owners of small businesses located nearby also gain because Wal-Mart attracts a number of suppliers who also service local businesses. In other words, the overall business of the local area increases. Further, residential houses and apartments spring up in the areas where Wal-Mart is located leading to greater business for local retailers. Wal-Mart is impressive in its way of doing business and much needed in the surrounding communities it serves. Citizens are employed and high taxes are generated. The mega retailer already has more than 30 stores and nearly 20,000 workers in Chicago's suburbs, making it the largest private-sector employer in the region (Brooks 2010). Unemployment is lowered when Wal-Mart comes to town and this employment relieves the states’ funds from depletion. As part of its new "urban strategy," the world's largest retailer, Wal-Mart Stores Inc., is looking to open two dozen stores in the Bay Area (Ross 2010). These are not the big boxes that we associate with Wal-Mart but smaller stores aimed at groceries. What type of marketing mix do they use to achieve their marketing goals' Product. Price. Placement. Promotion. Wal-Mart is no different than the competitor when it comes to the marketing mix, the difference is the power. The products they sell are the lowest. If a competitor has a lower price by chance, Wal-Mart will match it with no questions asked. The products are rarely out of stock and the company promotes endlessly. When analyzing a compare and contrast of Wal-Mart with other chains, each chain has a portion of what Wal-Mart has to offer but none have the vast array of products at the true discount prices. This is an example of how Wal-Mart performs effectively through its vast control mechanisms. In tough times, such as these, the consumer needs to stretch its dollars as far as he or she can to survive and Wal-Mart knows this. This knowledge has, in turn, shown profitable for the company and its shareholders annually. Even when Wal-Mart posts a loss, the loss is insignificant to the losses of other chains, such as K-Mart. This chain was on the verge of non-existence when it merged with Sears. Today, even combined, these two chains cannot compete with the likes of Wal-Mart. The downsides to the communities are that local businesses that sell the products sold by Wal-Mart are driven out of business. These businesses have lower revenues. For every gain in customer by Wal-Mart, local businesses lose out. Wal-Mart captures substantial portion of retail trade leading to bankruptcy of other retail businesses in the area. Building material, furniture, and food product retailers are forced to close down because Wal-Mart takes away their business. Wal-Mart Stores Inc. is planning to open dozens of small stores in the nation's cities, in an effort to push back against the dollar chains and other competitors nibbling at its customers (Bustillo 2010). Wal-Mart is known to charge low prices on some product to drive local businesses into liquidation. A Wal-Mart representative can respond to negative criticisms by promoting the fact that the company will bring increased employment to the area. Second, Wal-Mart will provide shopping access to many residents that they never had before. Wal-Mart will also bring international products at affordable prices to the area. The main positive aspect is that Wal-Mart supports local businesses by increasing the traffic to them. Conclusion Wal-Mart offers a convenient option of shopping in one place. The residents of the surrounding communities have a higher level of employment. Retailers in the United States must be specialists and generalists to gain the largest market share possible. Wal-Mart has been at the top of this heap for many years. They achieved this by their mass marketing appealing to many people. As researched, their strategy is to appeal to the community by decreasing unemployment and raising tax revenue for the area. Wal-Mart has proven that are beneficial to any community. References Brooks, M.. (2010, July 1). What Else You Should Know About WALMART. Reader,p. 13-15. Retrieved November 29, 2010, from ProQuest Central. (Document ID: 2084881881). Miguel Bustillo. (2010, October 14). Wal-Mart Plans Small, Urban Stores. Wall Street Journal (Eastern Edition), p. B.1. Retrieved November 29, 2010, from ABI/INFORM Global. (Document ID: 2161778321). Andrew S Ross. (2010, September 21). Wal-Mart looks to squeeze into S.F. San Francisco Chronicle,p. D.1. Retrieved November 29, 2010, from ProQuest Newsstand. (Document ID: 2142569461). Walmart Corporation’s Corporate Website, information retrieved 29 November 2010, from www.walmart.com