What type of retailer is Wal-Mart? What product line, amount of service and price strategy is used?What you would suggest they can do to improve their service?
Wal-Mart is a extremely low cost retailer which tries to offer customers products at the lowest possible rates. This is done through an excellent inventory management and cost-cutting at every stage. They offer minimal customer services and actively try to seek customers who are not interested in having a good shopping experience but would instead like to be able to buy the goods at the least possible price. Products sold at Wal-Mart are acquired from producers who can offer the best rates and are willing to keep their margins very low. The store works by catering to a very large demography and make the best use of economies of scale.
To improve its services Wal-Mart would have to find ways to cut down its operating costs as they cannot raise their prices.
Wal-mart is the world's largest business company in terms of revenue. It is also the largest grocery retailer in the world.
Wal-Mart follows a policy of competing on price, with low margin and high turnover. It is able to keep its prices low by various means such as selection of product range, location of stores in areas with low property prices, efficient logistics management, effective buying, and keeping the operational costs down. Also it focuses on selling more popular products. This enables Wal-mart to make more efficient utilization of shelf space in its stores.
Customer service orientation of Wal-Mart is to make improve its in-store management to make it easier and faster for the customer to shop. It does not follow the policy of providing add-on service that increase the cost of their product disproportionately.