Fortune 500 Companies

Fortune 500 Companies

Walmart Inc.

Introduction

For a business entity or corporation to be considered a Fortune 500 company, it must have been successful in its business undertakings. Fortune 500 companies often report significant annual revenues, which makes them among the leading companies in their respective industries. Additionally, these companies are considered to be the most profitable in their sector, and they are successful in branding, brand creation as well as customer service, as noted by Meadows & Meadows, 2016). Wal-Mart is considered as one of the Fortune 500 companies operating globally due to its continuous ranking as one of the top retailers amongst Amazon and other corporations.  Wal-Mart operates a chain of hypermarkets, discount stores, and other related retail business entities in the United States and other subsidiaries in other parts of the world. The company has been raking approximately 500 billion USD annually in terms of revenues, making it the world’s largest company by revenue (Hunts et al., 2018). This success has not been overnight but gradual through the dedication of its founders, subsequent leadership, and dedicated workforce that has resulted in tremendous growth over the years. Wal-Mart has majorly been successful because of centering its business model of low prices and great service that has ensured that they have a loyal customer base (Hunts et al., 2018). In addition, they have also brought new approaches and technology to retail, such as partnerships and other measures that help it remain competitive in the price war against other competitors.

In terms of market penetration and brand visibility, Wal-Mart has employed the Wal-Mart Marketing Mix strategy that is centered on five major core marketing principles, such as price, product, promotion, place, and people. The company offers customer-friendly prices on most of its products, which has increased demand and maximization of profits through economies of large scale (Hunts et al., 2018). Additionally, Wal-Mart also offers a wide variety of products that include grocery, home appliances, furniture, health services, and others, giving their customers a wide range of products and services to choose from depending on their preferences at specific times.

Moreover, Wal-Mart employs different promotional strategies when informing their customers about the availability and other information related to their products in the market. They use different advertising avenues such as print media, social media, and other eCommerce platforms to promote their products in the market (Ellickson, 2016). Other promotional strategies include offering discounts, warranties, and replacement of products that ensure that their customers are satisfied, giving them an edge over other competitors. Location or place of business is one major factor that almost every business must take into consideration for it to be successful (Ellickson, 2016). Accessibility and convenience are important for customers. Wal-Mart has, therefore, employed different strategies to ensure that all their business premises are easily accessible and convenient to its customers (Osiyevskyy, 2017). These strategies include having online shopping options and door to door delivery of goods that don’t require the physical presence of customers at their stores.

The distribution centers and other outlets are also strategically located in places with good infrastructure and high human traffic and are well branded, indicating the different products available for sale. The different stores include Wal-Mart Supercentres, Wal-Mart Neighborhood Markets, Wal-Mart Express Stores, and Wal-Mart Discount Stores, offering specific products and services. Wal-Mart identifies with its ease of accessibility that is facilitated by the many stores, supermarkets, and value stores that the company has managed to establish in most of the neighborhoods in which they operate. Apart from the products and services that Wal-Mart offers to its customers, other factors have also further improved their performance and competitive advantages over other retailers. The mission statement “we save people money so they can live better” is catchphrase that is intended to appeal to customers and therefore makes them have a sense of belonging when purchasing Wal-Mart products and services (Hunt et al., 2018). The slogan helps to bring out Wal-Mart as a brand that cares about its customers and helps them by giving them value for their money. The latter is one of the major brand identity that the company has used over the years to together with the low prices of their products to create a loyal customer base.

Moreover, Wal-Mart, together with its associates, has put in place a robust corporate culture that is geared towards customers, communities, and other stakeholders that have been in existence since its early days to maintain brand relevance in the competitive retail business. It has continuously integrated cultural development and collaborations into the business planning processes. The over 2 million associates and employees must inculcate this culture that is crucial to serving customers in their daily lives. Each associate and other stakeholder plays a critical role in driving their business objectives and strategy and is, therefore, involved in major decision making in the company. Behaviors and activities of the various stakeholders are, therefore, monitored to ensure consistency with their core business values, which include efficient customer service, excellence, and integrity (Ellickson, 2016). Proper internal and external communication strategies are also in place when reinforcing or refining its culture with leaders both at the local level and at the top tasked with sharing information with the other stakeholders in the business chain.

There is also close collaboration with suppliers to ensure that the communities where they source their products are well taken care of. Other stakeholders, such as non-governmental organizations and local governments, are also consulted, especially in promoting the improvement of working and environmental conditions in their global supply chains. Through their corporate social responsibility, Wal-Mart has also tried to improve its economic, social, and environmental impact according to the 2018 Global Responsibility Report by meeting consumer expectations and eliminating unethical practices in its supply chain. Additionally, Wal-Mart also maintains a code of ethical standards that all employees, including the top management, must maintain. Some of the guiding principles in its code of ethics include abiding with the relevant government laws and regulations, internal reporting processes about the company practices to the relevant authorities, and general integrity when conducting business strategies and objectives (Revak, 2011). Appropriate disciplinary actions are also available against any associate or employee who violates these codes of ethics and may include work and contract termination.

Conclusion

Wal-Mart has maintained its ranking among the Fortune 500 companies in the world due to its efforts in creating brand awareness, maintaining brand visibility, and investing in building a working corporate culture. The company that operates a series of retail stores and online shopping platforms identifies as a low budget retailer that helps its consumers to save on their money. Wal-Mart prices its products at the lowest price possible to ensure that it reaches the right customer bracket and also to reach a wide range of consumers both from the low and high-income social classes.

References

Ellickson,P,B.(2016).The evolution of the supermarket industry; from A&P Walmart.In Handbook on the  Economics of Retailing and Distribution.Edward Elgar Publishing

Hunt, I., Wattsh, A.,&Bryant, S.K.(2018).Walmarts International expansion: successes and miscalculations.Journal of Business Strategy.

Meadows,C,Z.,& Meadows,C.W.(2016).Corporate reputation on mass media, public opinion, and YouTube:Examining the factors influencing the reputation of Fortune 500 companies.Corporate Reputation Review,19(4),345-356.

Osiyevskyy, O.(2017).Maximizing the strategic value of corporate reputation: a business model perspective.Strategy&Leadership.

Revak,H.(2011).Corporate codes of conduct:binding contract or ideal publicity.Hastings LJ,63,1645.