Case Study- The man who said no to Wal-Mart Study

- The man who said no to Wal-Mart - Case Study Example Almost no matter what you're selling, the gravitational force of Wal-Mart's 3,811 U.S. "doorways" is irresistible" (Fishman, 2006). So what would make Jim Wier the CEO of lawn-equipment maker Simplicity say no to Wal-Mart This research endeavors to unravel this mystery by critically evaluating the issues that arise from the case study and independent research. 1. From its inception Wal-Mart's center of attention has always been about Every Day Low Pricing, and that view remains to this day. Sam Walton in "Made in America." is quoted as saying that Wal-Mart is obsessed with having the lowest prices. On the other hand, according to Wier, snapper is obsessed with having differentiated, high-end, quality products" and not the price. These are two very different points of view. These differences in corporate objectives can also be glimpsed from sentiments by a Wal-Mart high-ranking executive that a trillion dollars in annual turnover for the group is not as unreal as it may sound while Wier's own sentiments don't seem to share this view. He says that snapper is not primarily as keen on volumes. Target Customers and Market Segmentation. Market segmentation is an issue that arises as we study the snapper/Wal-Mart case. It can be defined as the division of a market into subsets of prospects with similar characteristics that distinguish them as likely to purchase certain offerings. Walker, Mullins, Boyd & Larreche. (2006). There are different categories of need that an offering satisfies and customers fit in different categories depending on their needs. Wal-Mart for all its worth uses low price as its key marketing and competitive strategy and often targets lower and lower middle-class customers. These low prices have another advantage in that they eliminate the cost of regular sales promotions. Wal-mart has also adopted a unique inventory system that that has allowed economies of scale resulting in a reduction in the costs of sales. Wal-Mart takes advantage in its being able to purchase in bulk and selling the goods itself. The strategy has served Wal-Mart-well over the years as evidenced by its unprecedented growth . Wal-Mart offers a selection of goods based on their customer's requirements. They are low on high-end goods because of the belief that people need discounted prices on practical products as opposed to the expensive brand name goods. Wal-Mart relies on their convenience and low prices. Wal-Mart does not have specific sections for specific brands. Snapper on the other hand is convinced that customers are different and targets high-end users. Believing that their customer's primary motivation would be performance and the longevity not low price. The Wal-Mart's popularity is mainly due to the following Every Day Low Price strategy. This has proved to be an all time winner mainly

Capstone Essay Example | Topics and Well Written Essays - 2000 words - 3

Capstone - Essay Example Accordingly, the organization’s mission statement also addresses the establishment of prosperous and beneficial relationships with both internal and external groups that are associated with the activities of the business such as its employees, suppliers and other partners (FedEx Corporation 2013a). Not only does the mission statement of the company depict the organization’s commitment towards its primary stakeholders but it also provides a roadmap for the management and the employees as to how FedEx Corporation aims to conduct its business activities. As indicated by the formulation of the organization’s mission statement, the vision statement and mission statement of a company often represent messages or meanings that are one and the same while in other scenarios; the vision statement portrays a company’s aspirations or what it hopes to achieve in the future (Secord 2003). According to FedEx Corporation (2013a) the organization intends to serve its custom ers in the best manner possible by identifying the exclusive requirements of each market segment. The presence of this clause in the organization’s mission statement has been the driver of FedEx Corporation’s successful service to its global clientele which displays varying needs. For example, the initiation of takeovers in countries such as Brazil, Mexico and India in the recent years has been prompted by the organization’s dedication to â€Å"accommodate evolving customer needs† (FedEx Corporation 2012). 2. Analyze the five (5) forces of competition to determine how they impact the company. Porter’s Five Forces model operates as an effective and comprehensive framework for identifying, analyzing and evaluating the possible opportunities and threats to a company which are posed by various competitive forces within the industry (Hill and Jones 2007). On the basis of this understanding, the framework outlines five key areas of competition that play a fundamental role in the formulation and execution of strategies to effectively address the outlined threats and successfully capitalize on opportunities. Bargaining Power of Suppliers The nature of FedEx Corporation’s activities and the scale of its operations demands regular interaction with several suppliers that are located across the globe. The company’s suppliers are identified as fuel suppliers, producers of shipping materials and airplane manufacturers (Berger 2011). Berger (2011) states that dominant fuel suppliers command strong bargaining power over the organization because of the unavailability of substitutes which greatly limits the organization’s ability to engage in successful negotiations in order to lower operating expenses. Similarly, the aircraft manufacturing industry displays an oligopolistic situation with Boeing and Airbus being the primary suppliers of aircrafts which lends significant bargaining power to the manufacturers (Berger 2011). Contrary to this observation, Berger (2011) identifies that producers of shipping materials exhibit only limited bargaining power because FedEx Corporation has the option of choosing its designated suppliers amongst several companies in a market that is highly competitive. Bargaining Power of Buyers Hill and Jones (2007) comment that bargaining power of buyers is subject to change as per the changes in the external environment. In the case of FedEx Corpora