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Walmart - Market Leader Strategies

Walmart has strategically expanded its market reach through opening new stores globally, introducing new services like Walmart Pay and grocery delivery, and acquiring companies like Jet.com. It protects its large 16% market share through low prices, quality goods, and efficient operations across its store formats and supply chain. Defensively, it expands delivery options, grows non-grocery sales, and responds to lawsuits while broadening its digital presence.

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murtaza mannan
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98 views4 pages

Walmart - Market Leader Strategies

Walmart has strategically expanded its market reach through opening new stores globally, introducing new services like Walmart Pay and grocery delivery, and acquiring companies like Jet.com. It protects its large 16% market share through low prices, quality goods, and efficient operations across its store formats and supply chain. Defensively, it expands delivery options, grows non-grocery sales, and responds to lawsuits while broadening its digital presence.

Uploaded by

murtaza mannan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Advanced Marketing Management

Project on
Market Leader Strategies of
Walmart Inc.

Presented by
Murtaza Mannan (19BSP1631)
Market Leader Strategies

1) Expanding Market Demand

➢ To increase its customer base, Walmart has been rapidly expanding its presence
across the globe by opening stores into new locations. According to Statista, the
company had a total of 11,766 stores worldwide (28+ countries) as of 2019, of which
4,769 stores are located in the US. The company serves about 270 million customers.

➢ To create more usage and convivence to its customers, Walmart introduced


Walmart Pay in 2015 – a fast, easy and secure way for customers to pay with their
smartphones in Walmart stores. The company is also launching in-home delivery to
nearly one million shoppers in three cities across US, as well as trying new options
such as unlimited grocery delivery for a fee.

2) Protecting the Market Share

There is an omnipresence to the WalMart store that allows it to increase its penetration in
customers' lives and increase the probability of a purchase. The company’s next-day
delivery service now covers about 75% of the US population. Its large volume of sales
enables it to make substantial profits, even in instances where individual margins on single
items may be slimmer than those of its competitors, like Target or CostCo. The company
has a total market share of 16% of the retail market.

It actually has a multiple-store format that extends its market reach, and it sells goods
through four types of stores: discount stores, Walmart Supercenters, Sam's Club
warehouses (which sell bulk items), and neighbourhood markets. It delivers quality
merchandise for the lowest prices possible. Besides building a reputation, it always
maintains a high position in terms of strong logistics, supply chain management, and
efficiency.

3) Defensive Market Strategies for Market Leader

➢ Position Defence
Walmart is well known for its slogan – "Always Low Prices," making it one of the key
customer-centric approaches to be a market leader consistently. Meanwhile to stay
competitive in the overall retail segment, the company is rapidly expanding into new
locations
➢ Flank Defence
Walmart is gaining share not just in grocery, but also in non-food items like apparel, home
furnishings and ecommerce, bolstering predictions that Walmart will be able to achieve
comparable-store sales gains of 2.5% this year.
➢ Pre-emptive Défense
On September 12th 2019, the company announced that it will be expanding a new
‘unlimited’ grocery delivery service, which costs users $98 annually, to 1,400 stores this fall.
On March 14th 2019, the company said it will expand its online grocery delivery service to
more than 40% of US households by year-end, growing from its current availability in just 6
markets to over 100 metro areas during that time.
➢ Counter Defensive
As the company is ramping up market share in the retail market, the retail giant is being hit
with a new round of individual pay bias lawsuits in the US. The company is managing to
toss out these allegations.
➢ Mobile Strategy
The company is broadening its market by opening new stores, while diversifying into other
fields through mergers and acquisitions of Jet.com to grow its digital footprint across the
world.

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