In this particular case we can observe how low labor cost contributes to obtain low import tariffs therefore leads to cheaper products. Walmart’s success in Mexico was definitely possible because of the NAFTA implementation. Question 2 NAFTA benefits every company that is willing to operate abroad. This agreement solved some difficulties but Wal-Mart`s inherent competitive strategy was effective in the Mexican Market. As we all know Wal-Mart`s strategy to win against its competitors is its offered prices.
The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management). Wal-Mart’s prices are low by the industry standard, which, combined with its lower costs, indicates a strategy that aims at growth in volume through grabbing increased market share. Low prices, advanced data management and extremely motivated employees (“10 ft rule”, “sundown rule”) means a better customer experience than at other discount retailers, even though Wal-Mart remains a self-service retailer. In addition, the large size of the traditional Wal-Mart stores adds convenience by offering a one-stop solution by offering a wide range of products. It’s worth mentioning that Wal-Mart acquired volume through a careful consideration of locations, away from competition.
Management believed concentrating its financial and managerial resources on a smaller number of business segments in which market prospects were promising and Sara Lee’s brands were well positioned would help the company save cost and more profitable. The company had also implement an outsourcing strategy known as Project Accelerate. It a company-wide cost saving and productivity that focused on outsourcing, supply chain efficiencies, and overhead reduction. 2. Prepare a 9-cell industry attractiveness/business strength matrix assessing Sara Lee’s business units (attach file containing your table/matrix).
WALMART STORES: “EVERY DAY LOW PRICES” IN CHINA Question 1 Why is Wal-Mart successful in the US? * Focus on price and service – Providing the best quality goods at the lowest price in a friendly environment. Wal-Mart is well-known for selling brand name products for less. Moreover, providing great customer service, showing respect for the individual and striving for excellence become its organizational culture, which has been carried out through the company’s history and been followed by employers as well as employees, no matter what the location is. * Successful marketing to attract customers.
2. Option 2: Datril as a Low-Priced Alternative to Tylenol. This option is essentially a price differentiation strategy, by positioning Datril is a cheaper alternative to Tylenol. Market growth would come from (1) attracting current aspirin users to Datril, which 1 GROUP 1 could hurt Bristol-Myers aspirin brands in the short run;
Having a focused-cost strategy means that the goods and services are aimed at a special type of consumer whose offerings cost less than competitors. A focused-differentiation strategy is aimed at a special section of the market that caters to the customers’ tastes and what the customers are looking for better than the competition. The best-cost provider gives customers “more value with average to above-average quality compared to the quality of the competition’s product (Thompson, 2012). The low-cost provider strategy aims at a spacious section of the market at right angles to the competitors and charges an overall less cost than competitors. The quality of the goods are acceptable to consumers and there are few frills.
One reason for Jamba Juices success is the fact that they keenly observe their value discipline of operational efficiency and to maintain said operational efficiency with as low a cost as possible. Jamba Juice is known for its low cost juices and snacks in their industry and has changed the way consumers viewed retail fast juices. This discipline has made Jamba Juice the preferred choice of consumers in the retail juice market. Jamba Juice from inception decided on the type of product to offer the consumer market. They needed to offer the product at the right price and with some variety that would stimulate the consumers mind.
What is Wal-Mart’s distinctive capability? Wal-Mart has the goal of providing "quality goods at low prices, responsible manufacturing, and opportunities for growth. Due to their expansive nature and broad customer base, they are able to provide a large discount on many of their products. They are also the leading employer in the United States of African Americans, Hispanics, women and senior citizens. What business are they In?
Marketing Britvic Case Study – Assessment 1 1. Characteristics of the marketing concept. The Selling Concept – This concept doesn’t primarily focus on new consumer wants or desires but focuses on the selling and promotion of a particular already existing product in order to achieve the highest sales they possibly can. This technique is suited to companies who sell products which are in high demand and whose customers/consumers tastes are unlikely to change and lessen demand. The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices.
Sainsbury’s Value Sainsbury’s pride themselves on the quality of their products that have been ‘sourced with integrity’ whilst still managing to offer excellent value for money. Their own brands including Taste the Difference, and their Basics range are reasonably priced offering their customer’s cheaper alternatives whist maintaining high standards. Another way Sainsbury’s offer value is by its relationship with Nectar which allows customers to save money whilst they shop. This is backed up by the recent venture into offering brand matching for Asda and Tesco, which means if any