Wal-Mart Brand and Service

Walmart Competitive Advantage and Quality
Name
Institutional Affiliation
Walmart competitive advantage
The competitive advantage of a firm is what differentiates a company from the others regarding delivery. It is what positions the company’s goods and services strategically in the consumers’ minds. Walmart is a global brand which faces a myriad of competition in the daily course of business. The firm has, however, been successful in most instances making sales of over 50% in the industry. For the company to achieve these transactions, it relies on its competitive advantage as similar products are offered in the market by competitors. Walmart competitive advantage is cost leadership coined as the marketing communication message: Everyday low prices.
Walmart achieves cost leadership by applying mechanisms such as the economies of scale, convenient means of purchase and improved assortments of goods (Humberto et al, 2014). Economies of scale are the cost benefits which a firm derives from a vast size. Walmart is the most significant retailer in the world and as such has managed to obtain a network of suppliers in every corner of the world. The store boasts of over 5,000 stores globally and thus obtains significant bargaining power with the suppliers. It, therefore, receives its products at a cheaper cost enabling it to sell at a lesser price. Its size additionally incases its connectivity, and thus its distribution becomes less expensive as some of the products will not be transported.

Its presence in most parts provides the firm with enormous amounts of information about consumer behavior (Humberto et al, 2014). The company thus manages to spread the desired practice in all its outlets. Walmart additionally provides its customers with many ways to purchase ranging from online to phone calls and shipping. Walmart delivers all these goods under one roof in various categories, sizes, and qualities. The assortment makes the retailer desirable as all customers are covered and that the products at the store are way cheaper than purchasing from the competitors.
Role played by the quality offered
For the retailer to maintain competitiveness, it needs to provide quality goods and services. Quality is so vital to customers for their retention. For a product to fulfill all the quality standards, it has to meet and exceed the customers’ expectations. Humberto et al (2014) alluded that quality takes two dimensions: quality dimensions of services and quality dimensions of goods. In the quality dimensions of service, customers assess the credibility, reliability, communication, responsiveness, courtesy, access and empathy exhibited by a firm (Smithson, 2017). On the other hand, the quality dimensions of goods are assessed by use of durability, safety, environmental impacts, flawlessness and solving problems.
Walmart meets both quality dimensions although it does not manufacture goods. It fits the quality dimension of products by dealing with the suppliers directly and thus offering authentic goods which meet the environmental standards. Walmart is a service industry and therefore relies on the service dimension to meet quality to the customers more than the goods quality dimension. The firm is easily accessible from the internet and its physical locations. If one requires contacting them, they can drop an email or call their offices for a prompt response. The firm frequently communicates with thousands of customers on many platforms including Facebook page. Information thus flows seamlessly between customers and the business. The mode of communication from the firm’s end is courteous and full of respect as they deal with different kinds of people. They portray the feelings of empathy in understanding the customer’s needs. All these quality services are the reason Walmart expanded from a single store to a multistore retailer. The facilities have ensured that the firm retained its customers and gained others by offering superior services and goods as required by their customers. It also shows that the company has met the customers’ expectations by providing quality services.
References
Humberto B., Masanell R., and Tatjé E. (2014). Business Model Evaluation: Quantifying Walmart’s Sources of Advantage. Strategic Entrepreneurship Journal (Forthcoming). Rerieved on January 27, 2018 from https://dash.harvard.edu/bitstream/handle/1/13135315/brea-solis,casadesus-masanell,grifell-tatje_business-model-eval_SEJ-12-0963-R3.pdf?sequence=1Smithson N. (2017). Walmart: Operations Management 10 Decisions, Productivity. Retrieved on January from http://panmore.com/walmart-operations-management-10-decisions-areas-productivity-case-study-analysis