In total, Overstock.com earned $1.05 billion in revenue for FY 2010 which was an increase of 23.4% from the previous year. In terms of liquidity, the company has $12.66 million in operating cash flow. The composition of net sales is approximately 18.4% for the Direct Segment and 80.8% of net sales for Fulfillment Partner Business. The direct segment refers to sales directly to individual consumers from certain offline channels and Overstock.com’s leased warehouses, where purchased surplus inventory is stored and re-sold at a premium on the website. The Fulfillment Partner Business segment refers a 3rd party liaison between customers in search of low prices and retailers & manufacturers that are looking to liquidate.
(Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence. Wal-Mart sources material from third world countries at low price. Very efficient supply chain management and bargaining power has enabled Wal-Mart to sell goods at low price. Company is also pursuing vertical integration strategy to lower cost. Answer-2) Wal-Mart Stores had turnover of $446.95 billion and net income of $15.77 billion in financial year ending
Marketing – Summer 2013 (Assignment 1: Walmart Case; Submitted by: Rohan Saldanha) 1. What are Wal-Mart’s key success factors in the United States? Evaluate the difficulties in transferring these key success factors to other nations? Walmart has been a success in the United States due to a variety of factors. Firstly, most of its supercenters are about 185,000 square feet and offer a plethora of groceries, electronics and other consumer goods at prices that are rarely matched.
* Market share today: Out of 2,000 big companies Wal-Mart is at 17 with 201.36 billion in market value and in its industry of retail, Wal-Mart is ranked #1 with Home Depot and Target behind. * Profitability of the company compared to the past: Last year Wal-Mart closed with their net sales at $344.992 billion and as Wal-Mart finishes their third quarter their net sales is at $269.8 billion, this is a positive for them and an 8.6% increase on sales. B. Strategic Posture 1. Mission * The company’s current mission objective is to give their customers what they want.
Financial structure and management fit with its overall financial strategy Walmart’s operations comprised of three segments: Walmart U.S. which includes all the company’s mass merchant concept in the U.S., International segment which consists of retail operations in 14 countries and Puerto Rico, while Sam’s Club segment includes the warehouse membership clubs in the U.S. The total sales of the company increasing yearly from year 2006 to 2010, due to their global store expansion programs, comparable store sales increases and acquisitions. Besides that, Walmart always double the amount they were spending on television advertising during the holiday season. The company has worked more than a year on improving inventory levels by hiring two firms – Acosta Inc. in the U.S. and Retail Insight in the U.K., to walk the aisles and monitor stocking levels. They believe in making better on product availability and inventory, the real risk that the customers take their basket elsewhere when there are items out of stock will be reduced.
That’s when we’re at our very best” (2011, Wal-Mart Culture). Sam Walton opened his doors in 1962, Arkansas, with the promise of offering the highest quality merchandise for the lowest prices while maintaining the best customer service. The company then sprinted to the top becoming a Fortune 500 and one of the largest retail companies in only four decades. Wal-Mart soon took on public scrutiny for being too powerful and with that came the realization of how much power Wal-Mart used. It was in 2005 when CEO Scott decided to change Wal-Marts image to one that was ecofriendly, and would show Wal-Mart in a positive light.
Along with being in competition with themselves, they also need to worry about Kohl’s, Target, gas, and the internet. Everyone is trying to sell at the lowest price to help attract and retain you as a customer. What is amazing is that Costco doesn’t seem to have advertising on the television; they rely on word of mouth, whereas you see Wal-Mart commercials periodically. 2.) Sam’s, Costco and BJ’s all seem to have the same strategy just with slight differences, they all try to have high quality and low cost.
Comparison of Communication Style Wal-Mart v/s Sears Both, Wal-Mart and Sears retail outlets have embraced low price strategy to motivate customers to buy their goods. These two retail outlets have many marketing strategies in common. They also have some different approaches when dealing with customers of diverse culture. Wal-Mart aims to sell specialized items to its customers. In regard to this, Wal-Mart management stocks items that they feel would sell out faster during specific times.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
One example of a business where IM will not work is a business that that sells electric wheelchair. Additionally, companies looking to sell products to a wide range of people and are looking to have large number of sales will not find IM as useful as outbound marketing (OM). While IM is good because it is cheaper to imploy and brings in higher value potential customers, it only captures a small market. OM should still be pursued if a company is seeking for large sales and large customer base. The most optimal marketing strategy may still be to apply both methods of marketing with the right