Topic 5
Wal-Mart
The World’s Largest
Retailer
Listening to and Taking Care
of Customers
Wal-Mart knows its customers and
takes good care of them.
As one analyst puts it, 〝The company
gospel truth)…is relatively simple:
Be an agent for customers, find out
what they want, and sell it to them
for the lowest possible prices. 〞Thus,
the company listens carefully.
Listening to and Taking Care
of Customers
For example, each topic Wal-Mart executive
spends at least two days a week visiting
stores, talking directly with customers and
getting a firsthand look at operations.
Then, Wal-Mart delivers what customers
want: a broad selection of carefully
selected goods at unbeatable prices.
Concludes Wal-Mart’s current president and
chief executive, 〝We’re obsessed with
delivering value to customers. 〞
Listening to and Taking Care
of Customers
Another sign inside the store reads
〝At Wal-Mart, our goal is : You're
always next in line!〞
Customers are often welcomed by
〝people greeters〞 eager to lend a
helping hand or just to be friendly.
Treating Employees as
partners
Wal-Mart believes that , in the final
accounting, the company’s people
are what really make it better.
Thus, it works hard to show employees
that it cares about them.
Wal-Mart was first to call employees
“associates”, a practice now widely
copied by competitors.
Treating Employees as
partners
The associates work as partners, become
deeply involved in operations, and share
rewards for good performance.
The partnership concept is deeply rooted in
the Wal-Mart corporate culture.
Wal-Mart’s concern for its employees
translates into high employee satisfaction,
which in turn translates into greater
customer satisfaction.
Keeping a Tight Rein on
Costs
Wal-Mart has the lowest cost structure in
the industry.
Thus, Wal-Mart can charge lower prices but
still reap higher profits, allowing it to offer
better service.
Wal-Mart’s lower prices and better services
attract more shoppers, producing more
sales, making the company more efficient ,
and enabling it to lower prices even more.
Keeping a Tight Rein on
Costs
Wal-Mart keeps costs down through
good old “tough buying.”
Whereas the company is known for the
warm way it treats customers, it is
equally well known for the cold,
calculated way it wrings low prices
from suppliers.
Conclusion
Some observers wonder whether Wal-Mart
can be so big and still retain its focus and
positioning.
They wonder if an ever-larger Wal-Mart can
stay close to its customers and employees.
The company’s managers are betting on it.
No matter where it operates, Wal-Mart’s
announced policy is to take care of
customers “one store at a time. ”
Conclusion
Says one top executive: “We’ll
be fine a long as we never lose
our responsiveness to the
consumer. ”
Reference
Kotler, P., Armstrong, G. (2003) ,
Marketing 6E : An introduction,
Marketing at Work 12-2, “Wal-Mart:
The World’s Largest Retailer”,
Prentice Hall.