Success of Walmart Public Relations Essay Example

the founders, Sam Walton. After the second World War, the retailing industry in the United States adopted new strategies in trading that included the evolvement of the discount merchandising that encouraged the departmentalization of the retail business. The development of Walmart at the moment provided the lower priced goods for consumers at the considerable low price in acceptance of the lower margins. The low prices provided the adoption of the demand and supply hence the improved quantity of products was sold by the retail shops facilitating the development and attraction to the customers.

The company had launched the business in small towns that included the South and Mid-West regions and eventually expanded to bigger and busier markets that would utilize the supply of the products more frequently. The low prices improved the competitive advantage despite the inflation effects of the 1970s. The competition was high affected in the 1970s with the Sears retailer topping the industry during the period. However, after the recession of 1974-1975, Sears was adversely affected by the inflation due to the target market of the middle-class individuals (Baroto, Abdullah, & Wan, 2012). Competition critical role in the retail business help shape the industry that affects the diverse cultures and class difference of consumers.

The rise of Walmart to the developed and established position begun with the concentration on the prices and the target market of the organization that facilitated better profits and a high number of customers. The strategy adopted by the Walmart retailers concentrated on the low overhead expenses in competition to the rivals in the business. The experience gained by Sam Walton in his previous positions as a retail employee facilitated

the understanding of the market strategy and identification of the best platform to adopt in making building the stable business environment.

Walmart establishment in the small towns created the confidence among the common populations that saw the rapid development in the 1980s in comparison to the other retailers such as the Sears. The opening of additional stores in the large cities attracted different groups of customers especially those centered in the urban areas. The demand for the low-priced products by the customers due to the economy downturn led to the opening of more retail outlets across the suburbs and the small towns in general.

The facilitation of the local economy through the provision of low price products improved the popularity of the Walmart. The retailer attracted more customers due to the provision of the good quality products for the economy that was experiencing challenges at providing products and services. The rise in competition resulting from the realization of the successful establishment haunting the Walmart through the establishments by the local independent merchants interested in destroying the organization goals and objectives of attracting the local customers (Baroto, Abdullah, & Wan, 2012). The local chambers of commerce rescued the local establishment of the local market eliminating the critics by the local independent merchants set to destroy the local distribution.

The provision of job opportunities by the Walmart encouraged the support from the local chambers in the provision for the local market economy. The adopting of the new market environment improved the provision of products and employment of more local services that encouraged the relationship between the society and the retail establishment. However, the competition and diversity in the local merchants

in the business environment presented more challenges for the organization in the effort of establishing a stable market. The local publication on the other end began the scorning of the Walmart with the aim of destroying the public relations of the organization with the locals.

Effective Communication Efforts

The elimination of the local market led to the abolishment of the local advertising that affected the Walmart establishment negatively. Additionally, the favor of the technology adoption such as the direct mailing was adopted by the retailer organization that facilitated the more relevant and effective modes of advertising. The central management of the marketing data led to the improved study and establishment of the customer demands hence the improvement in the decision making of the organization. The utilization of technology surpassed the local advertisement challenge hence the initial steps of technology strategies that have seen the development of the Walmart retailer market.

Currently, Walmart establishment is aimed at improving the international market supply according to the objectives and goals set by the organization. The retailer market has established the technology supply of products that is aimed at improving the provision of products across different markets in the world. The core retail business can be divided currently into the Sam’s Club warehouses, neighborhood markets, Walmart stores and the super centers that are aimed at diversifying the distribution of goods across the international market (Caraway, 2016). The division of the Walmart product distribution system help differentiate the diverse customers in the retail industry with the aim to tap the highest customer base hence the improvement of the competitive advantage.

The largest warehouse services include the Sam’s club that facilitates the development of logistics

across different countries. The neighborhood market provides the convenient shopping experience for the groceries, pharmaceuticals, and the general merchandise for the clients at favorable prices in comparison to competitor industries. Walmart stores and Supercenters on the other end provide the family shopping experience that offers a wide variety of product. The provision of favorable prices by the Sam’s Club eliminates the middlemen in the supply chain. The experience gained by the founder Sam Walton establish the effects of low prices and deep discounting in appealing to customers and beating the competition in the retail industry (Baroto, Abdullah, & Wan, 2012). The strategy has worked in the establishment of the Sam’s club hence the success of the organization in attracting more customers and eliminating the competition.

The identification of the company culture and policy development strategy by Sam Walton in the retail industry has seen the development and striving of the retailer market survival. The establishment of Walmart faced various challenges among them the competition from established industries such as the Sears that affected the share of the customers in the supply of the local products (Hayden, et al., 2002). The company utilization of the attractive mission and vision that focused on cutting prices and deep discounting strategies helped improve the provision of products across different locations. The vision statement encourages on working together in lowering the cost of living. The opportunities offered to the Walmart employees in the provision of services help improve the standards of living as well as the provision of quality products at affordable prices. The wide distribution of outlets improves the accessibility of products from the different location attracting customer loyalty.

The corporate

culture determines the development of the organization's strategic operations that facilitate the respect and values in the organization. The culture determines the ethics and moral values of the employees at the Walmart as established by Sam Walton borrowing the concepts of strategic management from previous attachments in the retail industry. Walmart has gained the popularity due to the stable culture adoption that incorporates the employees and customers in the distribution chain perfectly. The organization strives in building and maintaining relationships with the clients and employees in the promotion of the positive business culture.

The culture adoption that facilitates the relationship with stakeholders helps improve the competition in the retail industry. Among the common culture adoptions of the Walmart, strategies include the basic beliefs and values that the employees respect the individual's respect to the services of the organization. The improvement of the personal behavior and positive relations help the retailer strive in the provision of services to the customers. Despite the rewards and recognition of the employees, Walmart emphasis on the basic beliefs and values to the customer services help develop a stable competitive ground against competitors.

Additionally, the Walmart culture emphasizes on the Grassroots process and the Sundown rule in the provision of products and services to the customers. The Sundown Rule concentrates on the management of data received from the stakeholders whose solutions is provided by the end of the day received by the organization. The rule improves the service provision of the organization about the information management and analysis of the customer demands. The effective rule ensures the update to the provision of services on the daily basis hence the development of the organization

customer satisfaction strategy. The grass roots process, on the other hand, was focused on bringing the concerns and suggestions at the table in solution to customer demands (Caraway, 2016). The capture and processing of ideas from the clients and customers effectively contribute to the development of policies and designing of the supply chain at Walmart retail shops across the globe.

Response for Effective Communication

The culture importance at the Walmart provision of services ensures the continuous business operation following the distribution strategy adopted by the organization. The grass root process provides the relevant information on the ground that facilitates the establishment of the Walmart establishments across the globe. The process provides the first-hand information regarding the demand by customers. Additionally, the sundown rules facilitate the current trends analysis, and the establishment of the environment changes characteristics in the provision of the relevant products and services across the distributed environments.

The open door policy attracts favorable management strategy in the organization through the facilitation of the easily approachable employee-manager relationship. The management strategy critical role in the development of the Walmart retail shops attracts the proper management and establishment of the organization relationships. The advantages of the employee-manager relationship provide the ability to implement the organization goals in the service delivery sectors hence benefiting the customer satisfaction. The open-door policy provides for the positive coexistence between the employees and the managers hence improvement of the service delivery (Baroto, Abdullah, & Wan, 2012). The culture has seen the establishment of new retail outlets across the universe with the goals of targeting the international marketing becoming improving across different locations. The provision of the high quality and brand name are the

pride of the employees who are satisfied by the management strategy adopted as expressed by the Walmart employee team.

Additional culture policies that are aimed at improving the services and product delivery at Walmart include the Ten-foot rule and the servant leadership adopted to facilitate the management of employees in the organization. The ten-foot rule guides the relationship between the employees and the customers. The rule concentrates on the personal relationship with the customers that include the eye contact and greetings that help the customers receive services from employees in a friendly manner. The policy additionally improves the employees’ personal skills in creating and building relationships within the organization. Customer-employee relationship in the retail industry improves the customer confidence in the organization products and services. The employees additionally can collect the relevant data from the clients hence facilitating the development of relevant policies in the organization.

Critical Analysis and Discussion

The Walmart organization culture improves the public relations in the retail industry through the employment of the relevant policies that guide employees in the effective interaction with the customers. The adoption of technology plays a critical role in the collection and analysis of the data that can be utilized in the development of policies and provision of relevant products for the customers. The utilization of the relevant strategies such as the pricing strategies ensured the rise of the Walmart retailer (Hayden, et al., 2002). The development of the pricing strategies as the result of the data analysis led to the elimination of the competition and effects of the supply chain such as the abolishment of the middlemen in the business.

Different factors play the role in the development and

establishment of the favorable competitive advantage and improved public relationships by the Walmart retailer. The competitive rivalry for the available market includes the incorporation of the bargaining power with the customers and suppliers, threats of substitute product management, threats by the new entrants and the medium pressures that affect the competitive market for the retailer (Caraway, 2016). The pricing strategy facilitates the elimination of the competition hence the improvement of the bargaining power in the market. The unique selling proposition by the Walmart stores improves the competitive advantage.

The analysis on the threats of new entrants is influenced by the provision of the deep discounting strategy by the organization in the market of the products. The grocery shops, for instance, provide the customers with discounts due to the establishment of the giant retail shop. The organization would additionally form the cost leadership due to the consideration of the market influence and popularity it controls across the universe. The brand recognition eliminates the threat of market entry by other competitors in the industry giving the retailer the opportunity of providing the products at the desirable prices.

Threats and substitute products are managed different trough strategies by the Walmart organization. The Walmart solution to the customers provide the low-priced products that the competitors can rarely keep up with. The differentiation in the target market help improves the service delivery of the retailer shop. The global target of customers from different backgrounds and utilization of technology provides the competitive platform that is favorable for the distribution of products. Online interaction between the customers and the organization provide the reachability and service delivery hence the effective relationship building for convenience purpose

(Joseph, & Kuby, 2015). The role of technology has facilitated the effective communication between the organization and clients improving the designing and supply strategies of the organization.

The Walmart retail suppliers provide the required products due to the thorough data analysis by the organization in the provision of services to different customers. The improvement in the bargaining power and the forces the suppliers to cut on the margins for the provision of quality products. Additionally, the bargaining power eliminates the competition from other organization. Walmart accounts for the 40-60 % of the supply from the suppliers and the size of the retail shops gives the organization power to determine the prices hence the ability for the provision of the high-quality products. The criticism from the suppliers, however, influence other competitors. The bargaining power of the retailer company is practically at the lowest level due to the high demand. The Walmart retail shop manages the provision of the quality products at the low prices due to the high bargaining power that overpowers the demand and supply rule application for the suppliers.

Advantages of the technology adoption and strategies designing have seen the Walmart retail shop to develop in focus to the distribution and inventory management of the organization. Among the common strategies adopted by the Walmart in aid to the distribution of the products include the pricing strategies as expressed above, the cost leadership coupled with the use of information technology and the strong inventory management that supports the real-time data analysis for the organization decision-making process. Additionally, the strategic location efficiently brings the products and uses the cross-docking technology in maintaining the customer outreach across the globe

(Joseph, & Kuby, 2015). The cross-docking practice facilitates the elimination of the third party in the business establishment and the development of a direct relationship with the manufacturers in the supply chain.

Walmart development of the high-class relationships with the suppliers has led to the development of the market-making phenomena that helps in the shaping of the contracts and conducts in the retail business. The organization’s stability in the product provision facilitates the manufacturers’’ standards of business hence the advantage in implementing policies that affect the market of the organization (Hayden, et al., 2002). The policies provide the for the quality provision of the goods by the manufacturers hence Walmart’s liberty in determining the quality of products supplied to the consumers and the pricing strategies adopted by the market leaders in pricing.

The role of Information Technology and innovations have facilitated the Walmart organization in developing the largest private employer retail outlets in the United States with the associations to the relevant organization in the provision of technology services such as the Microsoft organization. The retail organization has created the competitive advantage by the relevant mixing and the use of information technology and innovations hence pushing the small scale establishments from the market. The major information technology adoption by the Walmart organization was established in 1975 through the installation of the inventory system across all distribution centers in partnership with the networks Corporation IBM Computer Systems. The introduction of the barcode scanning in 1983 additionally improved the service delivery and data collection for the Walmart organization (Caraway, 2016). The quick scan facilitated the service to more customers in a short period. The importance of information management saw

the establishment of the private satellite network that facilitated the collection, analysis and translation of data into information for the streamlined provision of products to the growing demand in the retail industry.

Additional effective adoptions by the Walmart retail industry include the use of the radio-frequency identification technology that utilizes the electromagnetic waves in the data exchange between terminals. The purpose of identification and tracking facilitated the use of the RFIDs in the operations of the maintaining the inventory levels and the improvement of products delivery to the customers. The improvements in accuracy levels of the inventory system facilitate the growth of the information utilization that facilitates the management of operations and convenience for the organization (Joseph, & Kuby, 2015). Despite the rise in criticism of the management of the clients’ personal information, the retailer distributor has made strides in the technology utilization to offer services that are relevant to the diverse group of target markets across the globe.

Recommendation and Conclusion

The use of technology represents an important boost to the Walmart’s public relations quest of providing the products and services in the international market. The improved efficiency in providing the services improves the procurement process and analysis of relevant information that plays a critical role in the organization. The utilization of the scanners helps in the analysis of the data and the management of current events in the industry. The retailer has utilized different strategies that have resulted in criticism from competitors and external environment, however, the relationship between the organization and the customers has led to the development of the largest retail establishment across the world.
Conclusion

The analysis of Walmart public relation involves the vast consideration

of the international markets and the diverse cultures. The role of culture differences affects the provision of services and products. The high competition and complex management structure maintain the steady performance of the organization due to the improved relationship between the employees and the management. The role of technology and strategies adopted by the management facilitate for the customer-oriented focus min the Walmart organization. The pricing and cost leadership strategies have gained the organizations niche in the international market facilitating the transformation of Walmart retail organization into the largest private business in the United States.

Walmart visionary and attainable goals and objectives have facilitated the steady growth and acquisition of the large market share despite the rise in competition. The facilitation of the information technology utilization improves the advancements made by the organization. Implementation of the IT systems additionally facilitates to the proper management of information that is relevant to understanding customer demands and decision-making process.

References

• Baroto, M. B., Abdullah, M. M. B., & Wan, H. L. (2012). Hybrid strategy: A new strategy for competitive advantage. International Journal of Business and Management, 7(20), 120.
• Caraway, B. (2016). OUR Walmart: a case study of connective action. Information, Communication & Society, 19(7), 907-920.
• Hayden, P., Lee, S., McMahon, K., & Pereira, M. (2002). Wal-Mart: Staying on top of the Fortune 500: A case study on Wal-Mart Stores Inc. The Graduate School of Political Management, George Washington University.
• Joseph, L., & Kuby, M. (2015). Modeling retail chain expansion and maturity through wave analysis: Theory and application to Walmart and Target. International Journal of Applied Geospatial Research (IJAGR), 6(4), 1-26.