Walmart’s Marketing Analysis
Walmart Company is a successful global company that was established in 1969. It is a retail company located in the U.S with Sam Walton as the founder. The market analysis of the case study will discuss research questions, brief methodology, and analysis. Besides, the research paper will discuss the executive summary, limitations, and main findings of the Walmart marketing analysis of the case study.
Executive summary
Walmart is planning to have a new entry in Hong Kong and establish its retail business based on the existing culture of the target market. The company is planning to re-strategize to penetrate in Germany and Hong Kong successfully. The consumer decision-making process is the key factor in evaluating the entry of the company through post-purchase dissonance and models such as porters’ five forces analysis. The company is planning to use its existing strategy of cost leadership to penetrate in Hong Kong. Environmental scanning is expected to reveal threats such as a competitive advantage in the market and potential opportunities in the target market such as trends and threats in Hong Kong. The company is planning to apply the PEST and porter’s five forces.
Research questions
- What is the most effective strategy that is unique for the Walmart entry in Hong Kong?
- What are the relevant values to adopt for the success of Walmart?
- How will influencers, communication, and advertisements influence the success of Walmart?
Brief methodology and analysis
First, the PEST analysis model will examine political, socio-cultural, and economic factors that will influence successful penetration in the target market. Political factors ares vital because they will help to determine changes in investment regulations and policies that will affect its success. Economic factors will examine the freedom of the market and tax rates that will influence the dominance and expansion of Walmart Company. Social factors such as small-sized enterprises are prevalent in Hong Kong thus Walmart is planning to adopt the strategy. Finally, technological factors will favor expansion of the Walmart such as E-commerce.
Second, porter’s five forces are efficient in analyzing market strategies such as bargaining power of supplies, the threat of substitutes, threat of competitors, threats of new entrants, and the bargaining power of buyers. The model is effective because it will have a significant role in the success of the company.
Main findings
The company highlighted various relevant values that will promote the success of the company. The findings have shown that customer engagement is the core of the success of the company. Walmart’s strategy adjustment will ensure that company provides a variety of products that attract different consumers. Altering of entry will help to remain relevant in the market such as strategic alliances with supermarkets in Germany because the previous strategies of pricing failed. Reference group influences were recommended to attract many customers. The consumer decision-making process will help in studying consumer behavior in the target market. Besides, the reduction of post-purchase dissonance by providing innovative products will lead to the success of Walmart. Finally, the information search and purchase decision process will make customers in making sensible decisions before purchase.
Limitation
- The methodology did not address how to integrate the local language since it’s a small retail store.
- The company should have provided a platform to engage customers to get the best feedback.
- The project should have carried a survey on the effective marketing strategies in Hong Kong to understand their culture.
Conclusion
In conclusion, Walmart will succeed in Hong Kong market entry because it’s a successful business with a good reputation. From the main findings, the company will succeed if efficiently utilize the findings.