Wal-Mart's strategic direction has been to be the lowest cost provider of merchandise. Do you believe Wal-Mart can be successful in changing its strategic direction to offering more upscale, trendier products at its stores? Why or why not?
2007-02-13 13:51:30 · 5 answers · asked by haemogril 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
I doubt it. It's created it's niche and it's probably stuck in it. I don't imagine that there's any way they can successfully market themselves as upscale. Best possible solution would be for them to begin a new upscale chain with no apparent ties to Wal-Mart, achieve success with that market, then slowly begin to shift merchandise from that chain into the Wal-Mart stores. I think it' a long shot.
Then again, I'm no businessman, so what do I know?
2007-02-13 13:57:03 · answer #1 · answered by Anonymous · 1⤊ 0⤋
For Walmart to cater to upscale customers will be an uphill battle.
There exists a trendism that makes some people not want to shop at Walmart no matter what Walmart has to offer.
Yet, on the other hand, Walmart has stores in areas where the trendier ones haven't found a market. I live in such an area.
If Walmart were to introduce SOME trendier items, particularly in the area of fashion, food and/or furniture, I believe that this could find a market in this area.
As far as Walmart's generic items are concerned, I have found them cheaper in some items compared to Home Depot which is located (in my area) right next door, and which makes me want to favor Walmart's home improvement staples over Home Depot's.
I would think that upscaling would involve consumer research in particular areas and therefore create more management analysis costs for the company, and therefore create more costs that would be passed onto the consumer.
I don't think that Walmart would ever compete with unique brands in 'vanity value'.
Walmart has been a reliable supplier of essentials items in many countries at an affordable price. I think it should stick to just this proven strategy.
2007-02-13 14:06:12 · answer #2 · answered by flywho 5 · 1⤊ 0⤋
No way! They are already positioned as a low cost provider of goods all over the world. If they were to try and change they would fail miserably. Plus all of their internal systems and buying are designed for cost efficiency. Switching to higher quality, more upscale items will not mesh with their current system. They make money by being able to buy in bulk and buy goods at prices competitors can't compete with. Plus people who like upscale, trendier products tend to like a different shopping experience (valet parking, different atmosphere, etc). This would be very expensive for Wal-Mart to implement and remain profitable.
2007-02-14 15:02:04 · answer #3 · answered by Contrarian 3 · 0⤊ 0⤋
NO NO and NO why? becauee slowly but surely people are beginning to see walmart for what it is the pits of helll they treat their emplooyess like crap (ask one of em) their suff is all cheaply made and sam walton would roll over in his grave if he knew how his dream turned out in the hands of money hungry ceos one can only hope they bulid themselves into bankruptcy (it dont take a rocket sceintist to knw that you cant put one on every corner and them all make money lol )
2007-02-13 14:05:18 · answer #4 · answered by t b 3 · 1⤊ 0⤋
I agree and I hate Wal Mart also.
2016-03-29 05:37:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋