To start with, it is essential to note that an online supermarket Wal-Mart offers thousands of products for the home and office. The secret of their success is in the company’s approach, when the company thinks about the client from his point of view. Wal-Mart online store will provide a wide range of products and guaranteed low prices, you’ll only get a pleasant experience from the purchase. The division was based on the Internet in January 2000. Wal-Mart online store is a subsidiary of Wal-Mart Stores Inc. and their main office is located in Silicon Valley. Sam Walton, the founder of the company, has always believed that the customer should be number one. Thanks to this, Wal-Mart, with a modest headquarters in Arkansas, it became a worldwide store offering products for the whole family.
It should be stated that Wal-Mart online store differs from Amazon and Office Depot online stores. Wal-Mart online store contains a lot of information about different types of goods and it looks more like a family online store in my opinion. Amazon website is more strict and clear, it is more focused on certain things and design is less attractive. Office Depot design is too bright I think, as it has red phrases that attract attention, but also this means some alert and I can say that the most preferable and calm design of the online store is Wal-Mart. There are also big banners and many bright colors.
Do Wal-Mart and Best Buy face the same problems or different ones?
It should be noted that Wal-Mart Stores, Inc. – is an American company, the world’s largest retailer. Founded in 1962, to date under its leadership there are 6782 hypermarkets, supermarkets and convenience stores in 14 countries, the company’s staff has more than 2 million people, according to Official Wal-Mart online store (2013). The company takes an active part in the fight against hunger and sponsoring to help the needy. Policy of the Wal-Mart – is the sum of the maximum and minimum range, trying to wholesale, prices. Especially for those who do not like to hang about a large and noisy hypermarkets there was provided online version of this giant trade, a few mouse clicks and a shopping trolley itself will come to you. It should be noted that Wal-Mart and Best Buy face different problems. “Best Buy is often a target of complaints about late and unfulfilled orders and is the only major store who routinely has these kinds of issues,” says Brad Wilson, founder of BradsDeals.com.
What customers shop at Wal-Mart, both in-store and online?
Products from online store Wal-Mart are presented in categories such as electronics, music, movies, books, household goods, clothes, shoes, accessories, children’s goods, toys and video games, goods for sport, beauty products and health products for pets Christmas and New Year’s goods.
In the online shop Wal-Mart there are products of world famous brands such as Sony, Samsung, Apple, HP and others. Many of the products offered are made directly for the U.S. However, there are also many high quality products imported from other countries to the U.S., and it leaves no doubt – all goods are checked carefully. Anyone can pay for the purchase in the online shop Wal-Mart via credit cards American Express, Discover, MasterCard, Visa, using the electronic payment system PayPal. Shop takes care of customers, and products can be ordered very convenient. Already on the main page you will see a section – “Best Seller”, “bargain purchase” and “There are many ways to save.”
On the left side of the online store are located categories to choose from: electronics and office, multimedia, home furnishings and garden, clothing and footwear, children, toddlers, toys, video games, sports and fitness, cars, photography, pharmaceuticals, cosmetics, food and pets.
In the electronics are computers, technology, products for home and office. In the media you will find books, music and musical instruments, movies and TV shows. Toys and video games are clearly defined by age and preferences of children, you will not be difficult to find what the child wants. In the accessories and clothing there are a lot of products – both for men and for women. At category Home you can find everything – from the bolt to the windows and doors. Sports section will please with a lot of high-quality equipment. Many other sections of the store, as well, will please you with the high quality goods.
Determine a strategy for Wal-Mart to improve online sales.
Considering current situation of Wal-Mart online business, it should be noted that proper changes have to be made. The new and successful strategy has to be determined in order to improve online sales. As a fact, now that Wal-Mart buys foreign company or a new market, in particular, the company explores the situation on the ground, analyzes the cost of labor and transportation, disposal regulations and the risks associated with this aspect. Today, Wal-Mart considers itself mainly to develop a variety of sales channels. For example, Wal-Mart has even shopping terminals under its own brand alongside their same shopping centers. These terminals are in demand by those buyers who need to buy one or two products are “on the run”, such as water or snacks.
It should be said that most controversial tactics and attractive for traditional retailers is price- matching. Large retailers such as BestBuy and Target are trying to give customers better prices that are comparable to the prices Amazon. Yes, it can increase the number of sales, but on the other hand there is a certain percentage of risk. But the growth of activity of online retailers imposes a burden on the traditional sellers. In pursuit of the buyers have to lower the price, that is obviously to cut profits. Therefore, in the price- matching it is required to be accurate enough to tactics brought profits, not losses. I think that a strategy that has to be determined is to pay more attention to customers and to offer more valuable service opportunities and to surprise online customers with something peculiar.
Considering the report to managers that describes the primary cause of the problems, a detailed plan to solve them will be proposed, and it will show how the plan solves the problems and describe any other benefits it will provide.
In 2012 Wal-Mart had high hopes for the holiday season, but revenues of Wal-Mart grew only by 5.8% to $ 122.29 billion versus expectations of $ 124.21 billion. The problem is that in recent years the Americans began to save on food and other goods that previously purchased without regard to the price tag. They went to the competitors, and were increasingly choosing discount stores. With such a problem were faced by all major U.S. retailers. Wal-Mart has decided to act aggressively. He not only scored shelves that were extremely popular and with affordable products, but also reduced the price. This year the trend will continue. Hence, the operating margin of the company will be reduced.
Considering the marketing initiatives, Wal-Mart is always based on the themes of low prices, treatment of staff, quality of private label and for the environment. Historically, Wal- Mart has used hard-coded formula in their marketing tactics, but in recent years to show more flexibility. However, Wal-Mart still has a good reputation in areas such as fundraising, labor relations and expansion.
Purchasing power of Wal-Mart, its logistics network and IT-systems is a cause for envy of other retailers. These structures were quickly exported to new international markets, boosting performance of the company and allowed to implement a strategy renewal “Every Day Low Price” internationally.
A plan that can change the situation and attract more attention is an international online sale of various products in the online store. I think this strategy will help Wal-Mart achieve big results and will help to improve the situation with online sales. I think that low-cost shipping and the option to sell internationally to about 200 countries in the world will guarantee high profits for the Corporation.
All in all, modern economy generates more and more obstacles to such retail giants like Wal-Mart. One of the major problems of today – this is a global increase in competition and the growth of discount stores a single price (the so-called “dollar stores”) that can hit on the price image of Wal-Mart. The same retailer is big and easy target for anti-trust groups, anti-capitalist organizations, environmentalists and workers’ rights. It should be noted that Amazon – is an old and a big threat to Wal-Mart. This online retailer lowers the value proposition to Wal-Mart, based on the low price and wide range. In turn, Wal-Mart continues to increase investment in the online division, considering this area as one of the most important.
Now retailers balance between online and traditional commerce. According to analysts, keep the right balance will be difficult, but possible. If retailers can keep the delicate balance between online and offline stores, it is possible, you get something very valuable. According to Andrew Heap, buyer this year can expect more favorable tariffs for delivery: price reduction, reduction of the minimum threshold value of the goods free shipping for many expensive items. In addition, refunds will be more common.
“This is one of the tactics to attract people to the store. Maybe they just came to exchange or return an item, but something else might get their attention, and this means that you can sell more. As a bonus – convenience for the consumer.”