Case Study Marketing

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Wal-Mart : Penetrating Cities

Business opportunities do not necessarily come as fixed process transactions . Apparently , when an established company has already earned a good market reputation , the next step for it is to increase its business quality output in terms of maximizing its earning potential through various channels . The aspects of customer service , supplier partnership and logistics can greatly induce more earnings if delegated correctly . For Wal-Mart , the world 's largest retailer according to Fishman 's article , the best possible concept is penetrating into cities

br and establishes a `grass root ' foundation within segmented markets

One of the main advantages of having this approach for Wal-Mart is that the company can easily manage its logistic procedures . In a compact city , it is much easier to transport merchandises within specified small locations . Good logistic systems can utilize the best resources inside and outside the company span (Brewer 12 . This could easily save time and money resources for the business therefore improving inventory and tracking delivery transactions . Another good benefit in this city-concentration approach is that if Wal-Mart can establish a mini counterpart of retail outlets within cities , it would be very difficult for the competitor to have a head-on collision with the company since the brand Wal-Mart speaks for itself in terms of advertising . Also people will have greater access to Wal-Mart 's services and may at least feel they have a customized branch outlet of the company since the stores will comply with the laws accepted within the city parameters thus increasing the company 's sales . Just like what the company has done in Monona , Wisconsin , a customized super center was established as shoppers get great benefits in terms of convenience and huge savings (Wal-Mart Facts 1

Just like any business approaches , penetrating cities can also pose some disadvantages . For one , the establishment of new satellite stores in cities requires great investment allocations . This could impose a certain degree of Wal-Mart 's capital calculation . Moreover , commodity allocation per store can become a problem since the company head administration will need to monitor each and every merchant units in all the cities it has established its branches

Establishing a business presence in a local city can greatly increase customer satisfaction and convenience . However , there should always be a way to weigh the investment costs and profit accumulation before a company can initiate this kind of approach . For Wal-Mart , since it already has an established name with huge capitals , penetrating cities can be the best way to expand its specific market influence

Works Cited

Brewer , Ann "Handbook of Logistics and Supply-Chain Management " Google Books . 2001 . 10 Mar 2008

Fishman , Charles "The Wal-Mart You Don 't Know " FastCompany . 2003 . 10 Mar 2008

Wal-Mart "New Super center Is Custom-Made for Monona " Wal-Mart Facts 2008 . 10 Mar 2008 . YOUR NAME PAGE 3...