StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Revenue Strategy - Essay Example

Cite this document
Summary
of USA founded by Sam Walton in 1962 with a single retail shop in Rogers, Arkansas is the largest retailer in the world today. The company’s annual turnover of US$ 285 billion surpasses the Gross National Product (GDP) figures of many countries in the…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Revenue Strategy
Read Text Preview

Extract of sample "Revenue Strategy"

Module Analysis of Wal-Mart Revenue & Growth Strategies Wal-Mart Stores Inc. of USA founded by Sam Walton in 1962 with a single retail shop in Rogers, Arkansas is the largest retailer in the world today. The company’s annual turnover of US$ 285 billion surpasses the Gross National Product (GDP) figures of many countries in the developing world. Its scale of operations will rank at 33rd place if Wal-Mart is treated as an individual economy, surpassing over 100 countries in the world (“Wal-Mart” 2).

The company boasts of impressive profit figures of US$ 10.3 billion for year 2004 and reports claim that the profits have increased by over 10% for the fiscal year just concluded. With its Corporate head quarters in Bentonville Arkansas, Wal-Mart operates 99 distribution centers and transport offices in USA to service the operations of its 5,246 Wal-Mart stores out of which 1,587 are located internationally. Over 138 million customers per week are catered to by Wal-Mart stores across the world.

82% of American households have made at least one purchase at Wal-Mart during an annum. Such sustained performance over the years have been driven by a series of well crafted business strategies, which are targeted at generating revenue and profitability through the Wal-Mart operations as well as providing the company with significant competitive advantage over its rivals. At the heart of Wal-Mart’s revenue generation strategy lies the focus on attracting new customers and retaining existing ones by offering value that is unparrelel to what its competitiors are offering.

Its marketing campaigns are firmly hinged on the slogan, “everyday low prices” where the company offers certain products at 25-30% less than the normal market prices. With its massive operation volumes the company enjoys economies of scales, that are translated in to low prices, which in turn is used as the main revenue generation tool. The company also pressurize its supply chain in to cutting costs and improving their own productivity so that low prices can be secured at supply chain level, and passed on to customers while maintaining Wal-Mart’s profitability.

The company has utilized many channels to reach different customer segments by differentiating its stores formats and product range to suit locations and different communities. Wal-Mart stores fall in to 5 categories as Wal-Mart Discount Stores, Wal-Mart Super centers, Wal-Mart Neighborhood Market, Sams Club and Wal-Mart International. The company also operates Wal-Mart Online Store to capitalize from the increasing popularity of Internet retailing business. By expanding the product range from grocery, food and general retail items to financial products, telecommunication products as well as holiday packages the company has successfully widened its revenue base.

The company also utilizes the international expansion strategies to widen its market share globally thus increasing its revenue generation. The company’s success is largely attributed to its competitive advantage realized through the economies of scale; productivity derived from highly efficient supply chain and also its high tech Information Technology systems. Wal-Mart operates the largest private sattalite communication system which links its suppliers and stores located globally placing the company at the forefront of efficient logistic management (Wal-Mart: The Irresistable Retail Force..d.n.) Wal-Mart is reported to have a 48% productivity advantage over the competitors giving the firm a significant competitive edge.

Another key factor contributing to the success of the company is the great deal of attention paid in site selection. “The company claims it analyzes potential locations to find those that would support “one and a half” store” (Wal-Mart 9). Supporting its marketing activities, the company operates an in-store television network airing product ads, music and news. This network is viewed by over 130 million people a month placing it as the 5th largest network in America. Wal-Mart spends approximately $500 million on advertising annually.

In 2003, “Wal-Mart’s tab was $456 million” (Mandese 13). Wal-Mart advertisements in TV carry the famous “people greeters” and highlights Wal-Mart’s social activities as well as high level of minority representation in terms of African Americans and Hispanic Americans. In conclusion it can be noted that companies like Wal-Mart that have grown from humble beginnings to corporate behemoths that are financially more powerful than over 100 nations in the world, have relied on sound and sustained corporate strategy to drive their performance.

The focus placed upon productivity improvements and smooth operational processes such as networked communications and distribution systems have given the company an unmatched competitive advantage over its rivals, making it the largest retailer in the world. Works Cited Page "Wal-Mart.". Wikipedia, The Free Encyclopedia. 9 Feb 2006. 20 January 2007. http://en.wikipedia.org/w/index.php?title=Wal-Mart&oldid=38884398. Wal-Mart: The Irrerestable Retail Force is Fueled by Logistics. Council of Logistic Management. (d.n.) 16 January 2007.

http://ihome.ust.hk/~larry/assignments_files/N7-ThreeShortLogisticsCases.pdfWal-Mart Facts Sheet. Wal-Mart .com (2006). 20 January 2007. http://www.walmartfacts.com/articles/2502.aspxMandese, Joe. “Comparison Shopping: How the Kmart/Sears merger will impact TV and its ad agencies” 22 Nov 2004. Broadcasting & Cable. 20 Feb 2006 http://www.broadcastingcable.com/article/CA482072.html?display=Advertising

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Revenue Strategy Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1538972-revenue-strategy
(Revenue Strategy Essay Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/miscellaneous/1538972-revenue-strategy.
“Revenue Strategy Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1538972-revenue-strategy.
  • Cited: 0 times

CHECK THESE SAMPLES OF Revenue Strategy

Revenue Recognition

After a careful analysis and review of our accounting methods, and comparing them with the upcoming requirements and implications of the emerging issues task force EITF 00-21: revenue Arrangements with Multiple Deliverables I have decided that we should modify our… As you already know the early adoption of the recommended practices under the new proposal, will boaster the company's image and reputation in the industry Although it may initially seem counterintuitive to adopt the practices for revenue recognition stated in EITF 00-21,it is clearly the next step in establishing the company as a leader not only in the aircraft transport field but as a pioneer in the adoption of enhanced accounting guidelines is concerned....
6 Pages (1500 words) Essay

Revenue Management

The paper "revenue Management" explains how do pricing strategies and price optimization become strong elements of revenue management in the hotel industry, especially in independent boutique hotels in London.... revenue management, pricing strategies like price optimization and price discrimination, brand segmentation, new product concepts are but a few of its strategic forces that in turn have caused this industry to be highly dynamic.... revenue management and its functional areas of pricing strategies have turned to be effective tools for creating and achieving customer value and satisfaction that are at the heart of the hotel industry (Kotler, Bowen and Makens, 2006, p....
6 Pages (1500 words) Research Paper

The Business of Hewlett-Packard

There are many… The competitors' strategy and product development is also vital.... There has been a continuous growth of sales, EPS (earning per share) and net revenue.... The decision for acquiring other IT businesses is a move towards the basic thinking of HP and they want to be the complete IT solution provider in the industry....
6 Pages (1500 words) Research Paper

Learning and Growth Perspective of a Company

For this purpose, ADI Travel Agency needs to launch a continuous learning strategy by training and educating staff, motivating properly employees, and encouraging international experience.... However, by implementing this strategy, ADI employees will increase customer's satisfaction, by providing adequate and professional service to the customers.... Efficient implementation of the strategy will cause to financial and reputational benefits.... Performing the strategy of joint-venture with a city-owned public-use-airport and a few mid-level hotel chains, ADI Travel Agency will allow...
5 Pages (1250 words) Essay

Growing Revenue and Operating Income In The Near Future

This has forced the… This paper discusses some of the future growth strategies that the company is planning on adopting so as to improve its revenues and operating income. Increasing cable networks through Growth strategy for NBCU on Growing Revenue and Operating Income In The Near Future NBCU is one of the largest cable conglomerates in the world with vast investments in the areas of media and technology.... Telecommunications and business strategy.... Media Works NBCU is making plans of increasing spending on cable networks since the projected revenue earnings for the company are expected to grow at an average of 7 percent....
2 Pages (500 words) Research Paper

Revenue Management in Hospitality

Hence, the operation management consultant is to concentrate on the development of an YM strategy that would replace the existing strategy used by the company in order to ensure effectiveness and success of the YM performance in the business operations.... Each of the eight properties is concerned with application of a unique product mix, which assures successful application of the YM strategy with due consideration to the available resources....
17 Pages (4250 words) Assignment

Business skills - Interpretation

Existence of the UK as the source of revenue and the trend that suggest profitability in the other segments also means that the company can expand its operations in the UK and in the other segments, as an optimization strategy.... Graph 4: Average revenues References Ferrell, O & Hartline, M 2012, Marketing strategy, Cengage Learning, Mason.... Revenues The following graph shows trend in revenue.... Graph 3: Trend in revenue The UK is the significant revenue generating segment and this explains its profit fignificance....
2 Pages (500 words) Essay

The Strategy of an App for Pet Owners

The following paper entitled 'The strategy of an App for Pet Owners' presents the Company which decided to bring an app to the world of pet owners.... Dog owners can rest now; since they can leash their dogs and their dogs can wander off and still be monitored.... hellip; The author states that it will be in every dog owner's mobile phone....
15 Pages (3750 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us