Since the founding of Wal-Mart by Sam Walton in the 1960s, Wal-Mart’s competitive strategy is and has always been emphasizing lower prices, which is campaigned through their slogan “everyday low prices.” Wal-Mart’s management strives to achieve low retail prices by leveraging it buying power and controlling labor cost. As a business that “was built upon a foundation of honesty, respect, fairness, and integrity”, Wal-Mart’s culture is based upon respect for individuals, service to customers, and striving for excellence.
Although it has been stated that Wal-Mart’s culture is based upon respect for individuals, service to customers, and striving for excellence, it is readily apparent that managerial philosophy is to focus on leveraging its buying power and controlling labor cost by unethical sometimes illegal methods in order to obtain “everyday low prices”. This has caused some employee, customers, communities, and suppliers to have a negative viewpoint of Wal-Mart’s business practices and management.
Wal-Mart is essentially in business to provide the lowest price to its customers and the highest ROI; however they may seek something less for its customers and stockholders in certain instances. For example, Wal-Mart’s management may choose to provide its customers with higher priced items if it ensured safer or better quality. Wal-Mart management might decide to invest on an expenditure that has a ROI that may be lower in comparison to others but has a positive impact and viewpoint of the company like going green or providing health care benefits.
An opportunity forgone is the choice of choosing expenditure over another. Therefore, since Wal-Mart chooses to capitalize on the marketing strategy of “everyday low prices”, they are potentially losing the opportunity to benefit from high-end consumers. For example, a customer that has a high purchasing ability may not shop at Wal-Mart because of their perceived notation that only low priced or...
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