Walmart is my organization of choice. Sam Walton founded Walmart back in the year 1962. The foundation of this corporation was on offering lowest prices at all times in all places. The mission of Walmart Corporation is to save the money of their customers so that they can live a better life. This is why they charge low prices. Currently, Walmart is one of the biggest stores for consumer goods that operate as a chain of stores ranging from hypermarkets, discount department, and groceries. Walmart brands are driven by the low prices that allow consumers to save more money whenever they shop at Walmart. In order to achieve the company mission, the management has minimized the cost of operation so that they can charge low prices on their products (Pope and Jaren 7). The strategy has helped Walmart to record huge profits every fiscal year. It has been dominant in the top Fortune 500 Companies. The target customers for Walmart are the low-income earners and the middle-class population. The low prices have given the corporation a competitive advantage in the retail business.
Through advertisements and collaboration with many social media channels, Walmart has spread its fame to many people across the globe. The diverse products offered at Walmart helps serve all customers in the economy. Walmart wants their customers to feel that they save cash when they shop with them because they obtain quality products at reduced prices. The low pricing strategy is critical at Walmart because it ensures increased sales. With low prices, the customers have assured affordability of commodities at Walmart. The cost reduction to have the prices remain low should not be the primary strategy for the corporation as it comes with its disadvantages. For instance, cost reduction makes Walmart not to motivate its employees. Thus, there has been many employee turnover ratios. High turnover ratio means that the company will keep on investing in recruiting and training new staff, which is more expensive than motivating staff.
Work Cited
Pope, Devin G., and Jaren C. Pope. "When Walmart comes to town: Always low housing prices? Always?" Journal of Urban Economics 87 (2015): 1-13.
