Building & Maintaining Customer Relationships Essay

troupe OverviewWal-Mart is the worlds largest retailer society, which has operated on the grocery since 1962. The cosmea of such type of stores on the food trade becomes urgent. This phenomenon sens be substantially explained by the economic crisisering standards of living and economic slowdowns. The company was found in 1962 in Rogers, Arkansas (Wal-Mart, 2005). Its founder, Sam Walton opened the first distribution fondness in 1970, which was a starting point for further expansion, and in both years it was accommodated in the list on the New York breed Exchange.Today, n one of the discount retailers is more than popular than Wal-Mart. Wal-Mart merchandises a wide cultivate of goods from tables to combs. Wal-Mart is the leader of the full-line discounters, with many stores covering 120,000 squ be feet (or more) of floor space food accounts for near a third of floor space and sales (Wal-Mart Home Page, 2006). accomplishment systemWal-Mart uses learning strategy as the main(prenominal) tool to devil and penetrate untested markets around the globe and expend nationally. The first roll of acquirements took place at the end of 1970s when Wal-Mart acquired 16 Mohr-Value stores in pelf and Illinois (1977), Hutcheson Shoe Company (1978), Woolco stores (1983), Grand Central Stores (1985), Supersaver (1988). learnedness policy has been doubtlessly the most radical growth strategy open to management in that it represents a deliberate attempt to change the nature of the business (Is Wal-Mart acceptable for America, 2004). Executives at Wal-Mart spent most of 1990 trying to widen the brands customer base, and results have been promising. With hindsight, however, it is clear that Wal-Mart paid too much for the acquisitions. As noted previously, Wal-Mart is currently in the midst of its own financial retrenchment. Acquisition policy occurs when the new business is related in some modality to the old one.The opening up of the market and the resultant i ncreased contender has widened the perspective of the planning frame wee-wee with profound implications for Wal-Mart. During this termination of cartridge holder, Wal-Mart acquired Western Merchandisers, Inc and McLane Company of Temple (1990), 28 units from The Wholesale Club, Inc (1991). During 1990s, Wal-Mart has used acquisition strategy to expand internationally and acquired 122 Woolco stores in Canada (1994), opened new stores in Puerto-Rico (1992) and penetrates Korean and Chinese markets through joint venture strategy, and tucked German market in acquiring Wertkauf (1998) and Interspar (1999).For instance, acquisition with Woolco stores allowed Wal-Mart to subject to a complex regulate framework whereas others are less so (Watch Out atomic number 63 here Comes Wal-Mart, 1999). Still, even if it is doable to predict the needs of customer there are some threats and new opportunities, which should be taken into consideration (Oliva, n.d.). There are no ad hoc regulations governing the goals and structures of the constancy, there is no constitutional restrictions or legislative statute that restricts acquisition (Bianco, Zellner, 2003).In October 09 2006.Black Agenda Radio reported that Wal-Mart was going to enter Australian market making its first acquisition in Australia this year. They denote that Wal-Mart made investments in Brazilian retail chain Sonae and Central American Retail Holding Company (CARHCO). Also, On 28 July 2006, Wal-Mart announced it go out exit the German retail market by selling its 85 Supercenters to retailer Metro AG on the back of pre-tax losses of almost U.S. $1 billion on its German operations (Wal-Marts Germany Exit, 2006). So, acquisition strategy utilise by Wal-Mart provides the buyer with quick growth as well as access to existing brand suppliers, distributors, and goods.Retention StrategyUnlike the transactional, functionally-orientated approach, relationship selling in food retailing industry is a cross-funct ional process concerned with balancing marketing efforts among key markets. To bring on a winning customer computer memory strategy, Wal-Mart expends its ingathering lines and emends its customer overhauls. For instance, Wal-Mart enforced RFDI solutions and handheld computers linked to in-store computers which helped to transform its business worldwide (RFID to Transform, 2004).The strength of keeping strategy is that it is on average as dependent on unquestionable information technology as any other businesses. They care more about reliable service and confidence than about the lowest price. The company implemented IT supply chain solutions and Internet facilities in severalize to toy customers needs and requirements. A critical issue within the customer market domain in the USA is to ensure that customer retention as well as customer acquisition is emphasized. Recognition of the significant link in the midst of customer retention and profitability is leading to new and better strategies for alter customer satisfaction and obedience (RFID to Transform Real-Time, 2004).Branding, advertising, promotion, and special services to customers and product innovation strengthen the companys image (Sell Your Product, 2004). In-Store Checkout TV Channels are introduced in different locations around the country aimed make better customer service and engage customers in buying process. This strategy decreases date and efforts that customers must expend to learn about the products. Wal-Mart reduces prices seasonally in order to attract new customers and benefit existing buyers.Wal-Marts customers evaluate an full stop of a given specification in terms of its total pass judgment cost, i.e. acquisition price plus any necessary additional expenses associated with an distributor point it can be installation, running and maintenance costs, all discounted to the present time in order to take account of cash flows over a period of time.In the similar way the c ost of a get off movement or service may be expressed in terms of the original price of acquisition plus any additional and necessary costs or expenses (Brown Quintin, 2000). It is possible to distinguish cardinal aspects of costs price and expenses. Trying to provide customer service an organization considers these two measurements. In evaluating an organization, customers consider or respond to these two measurements. Mobile cipher and increased staffing for weekends help to overcome retention and improve customer service (The Big Secret Is poke out 2006).Strengths and Weaknesses of Wal-Marts Acquisition and RetentionThe main strength of Wal-Mart acquisition and retention strategies is that they improve companys postal service on the market they are customer-oriented and help Wal-Mart to expend internationally. Also, the management team of Wal-Mart takes into consideration that direct Investment involves several distinct forms. Ranging from a sales/marketing subsidiary throug h to a fully operational manufacturing unit producing the same products as the domestic plant, investment includes product specific manufacturing units, plants producing components and facilities which simply rear products in the end-user market (Davison, Smith, 2005).At the very beginning the strengths included heights dominance to growth and profitability of the company, and professional management team, customer loyalty and excellent service. It is targeted at the customers, which buy discounted and unpackaged goods from manufactures at extremely low prices (The Ever-Expanding imperium, 2004). For Wal-Mart, acquisition and retention strategies help to save millions of dollars on advertising and market penetration. Wal-Mart plans on a combination of forecasting and budgeting systems can only work if the future is going to be the same as the present or the past. Wal-Mart will succeed in reducing costs in the next a few(prenominal) years of the decade by international acquisiti on strategies.The main weaknesses include negative attitude of abroad competitors and strict government regulations restricted foreign ownership in some countries. For instance, in 2002 Wal-Marts attempts to buy Supermercados Amigo in Puerto Rico were blocked in order to prevent anti-competition policies and foreign ascendancy of Wal-Mart. Also, Wal-Mart has made attempts to acquire Aholds operations in Argentina, Brazil and Peru. other weakness of Wal-Mart is comparatively low wages which increase dissatisfaction with its policies (Is Wal-Mart Good for America, 2004).This business office negatively affects companys image and causes critics in press. Changes in jurisprudence and international regulations can weaken Wal-Marts global presence and limits its acquisition plans. For instance, the end of 1990s was marked by the changes on the European market which altered many of the parameters of competition and thus enforced a period of reassessment and varyation (Person of the We ek, 2006).RecommendationsTaking into account current acquisition and retention strategies and activities, the best collusions for Wal-Mart are planning for competitiveness and are actively involved in re-investing profits in new critical assets. Wal-Mart may choose to reduce on its core strengths and rationalize its portfolio, focus its activities on a concomitant geographic area or centre on a particular(a) user segment. Wal-Mart, as a result of being able to adapt to changing competitive demands, is likely to survive in the long term. The changes can be incremental or major in their nature, but each type provides specific advantages to deliver customer satisfaction.It is possible to conclude that powerful international and national marketing depends upon effective marketing system employed by a company. The company needs better management facilities external the USA to control and monitor performance around the world. For Wal-Mart acquisition should be key market-entry strate gy that entails purchasing multiple existing outlets in a foreign and domestic market. CRM (customer relationship management) can be seen as one of the main tool to improve current service and attract potential target audience. Maintenance of high standards is a key factor to improve customer service.ReferencesBianco, A., Zellner, W. Is Wal-Mart too powerful? Business Week, October 6, 2003, p.5.The Big Secret Is Continue to Do What You Do Best. Daily Herald (Arlington Heights, IL), November 28, 2005, p. 3.Black Agenda Radio. Wal-Marts siege in Chicago. KPFK, October 09, 2006.Brown, R., St Quintin, R.E. Distribution Sector Faces Major Impact.The Birmingham Post (England), February 17, 2000, p. 41.Davison, J., Smith, S.E. (2005). Wal-Mart Finds strength Harder to Achieve in Europe. 2 Sept. Gartner Research. addressable at gartner.com/resources/ 130800/130826/walmart_finds_d.pdfThe Ever-Expanding Empire after Wal-Mart Chief Talks to Key Men in Europe He Has a Big Message for His Shar eholders. The Evening Standard (London, England), may 27, 2004, p. 40.Is Wal-Mart Good for America? TV program Online Nov 16, 2004. Available at http//www.pbs.org/wgbh/pages/frontline/shows/walmart/8. Oliva, S.M. hurt Check on Antitrust WalMarts Acquisition of Britains Safeway PLC. capitalist economy Magazine. Available at http//www.capmag.com/article.asp?ID=2394Person of the Week. Braun and Dolores Hummel. ABCs human beings News Tonight. Monday, October 09, 2006.RFID to Transform Real-Time Business across Industries SAP Exec Says engine room Has a Big Future Business Impact. Manila Bulletin alarming 30, 2004, p. 4Sell Your Product the Wal-Mart Way. Daily Herald (Arlington Heights, IL), September 13, 2004, p. 3.Wal Mart. 2005. May, 21. Available at http//www.datamonitor.com/e923bef8274740fc8a14e76a70d51687/companies/company/?pid=8046847E-B325-4AF0-BC79-48100850E764Watch Out Europe Here Comes Wal-Mart. Business Week Online. June 28, 1999. Available at http//www.businessweek.com/ 1999/99_26/b3635129.htmWal-Mart Home Page. 2006. Available at http//www.walmartstores.com/wmstore/wmstores/HomePage.jspWal-Marts Germany Exit Reflects on Its Market Entry Strategy. 2006. Gartner. Available at http//www.gartner.com/DisplayDocument?doc_cd=142370