Walmart and Apple Growth Strategies

It is followed by the industrial sector at 18. 9% and the agricultural 0. The service industry is dominated by retail and wholesale trade, transportation and public utilities. Besides, the service sector is the largest employer in the country with some companies such as Walmart employing over 2. 3 million people worldwide and over 1. , Sam’s Club and Walmart International. All of these three put together give Walmart a total of over 11,600 stores under 59 banners in 28 countries as well as an e-commerce website available in 11 countries (Walmart). In the US, Walmart operates several physical stores and an e-commerce website that provides the Marketplace feature which allows third parties to sell products on walmart. com. In addition, Walmart integrates its digital retail with its physical stores through various services that include Online grocery, pickup today and Walmart Pickup.

com among others. These offers competitors offers wholesale and retail with various differentiating strategies that position them as direct competitors to Walmart (Deagon). Walmart’s core competencies Core competencies refer to a narrowly define filed at which an organization excels. The core competencies for a firm are unique and difficult for its competitors to copy thus enables the firm to separate itself (Gupta). For core competencies to be profitable to a firm, they must be valuable, rare, difficult to imitate and non-substitutable. 8 million square feet throughout the USA. These are supported by a Walmart owned logistics systems with several trucks and automated high-tech systems that ensure products are delivered to right stores in the right quantities at the right time. Walmart is therefore able to practice cross-docking which involves having products transferred from a truck once it arrives at the warehouse into a waiting truck headed to the store without taking much time at the warehouse (Vena).

This is cost effective reducing inventory storage expenses and low transportation costs which helps Walmart keep low costs in distribution which reflect in low prices in its stores. In addition, Walmart has a supply chain management that is supported by electronic product information, vendor role in distribution as well as a lay out of warehouse (Walmart). Customers are therefore confident that they will almost always get what they are looking for at the Walmart stores, in the right quality and low price (Vena). Walmart Pricing strategy With over $500 billion in revenue, Walmart contributes to about 2% of the USA economy. This success has been achieved through the Everyday Low Price Strategy (EDLP). This is a strategy that ensures Walmart offers low prices to its customers not only during sales events such as Black Friday, but throughout the year (Jayasy).

This is a strategy that has worked effectively to increase both customer loyalty and sales volume by the corporation. Walmart E-commerce Walmart swift response to enter the e-commerce sector has helped the corporation improve its sales besides become more competitive in the wake of threats from competitors such as Amazon, eBay and Apple. Today, Walmart e-commerce trade is the third largest after Amazon and Apple. Walmart has worked to solidify its online presence by acquiring startup and established retail online-retail firms such as Jet. com for $3. 3 billion and most recently buying Flipkart for $16 Billion to increase its online presence in India (eWeek Staff). Apple is headquartered in Cupertino, California, USA (Steve). Apple was founded by Steve Jobs in 1979 and is now headed by Tim Cook.

Apple is also one of the most profitable tech companies in the world with a profit of over $229 Billion in net revenue in 2017 alone and a valuation of over $750 Billion (Steve). Apple Key competitors Despite the brand apple being known for innovation, approachable user interfaces as well as sleek-design for its products, the company faces stiff competition from other competitors in the industry. Apple directly competes computer manufacturers such as DELL, Lenovo Group, HP Inc. Besides, Apple invests heavily in research and development that ensures its products are equipped with the latest technology. This ensure that consumers of Apple products get only the best in the products available in the market. 2) Creating the buzz Apple have a unique marketing strategy that involves releasing the information about its products a few weeks or days before actually launching the product.

This helps to create a buzz about the product by getting consumers to be more inquisitive and eager to experience the actual product. This works so well because Apple has a large and loyal customer base which is always looking forward to new and improved apple products. In addition, apple has established sole apple selling product stores throughout the world with sellers adequately equipped with knowledge about the apple products. This creates the best customer support systems that ensures customers needs are met which include excellent after sales services (Found & Richard, 267). 6) Diversification and Leverage into New Market Apple has ensured sustained growth through diversification. The corporation started form the Apple I, to the iPhone as well as other key products such as operating systems, iWatches, iMac, Fax modem, and keyboards among other products.

These products carry the apple brand name which allows the organization to leverage its brand value and entre new market categories (Gupta). Apple Skimming pricing strategy Skimming refers to selling products at a high price thus sacrificing high sales for high profit margins (Spann,Marc & Gerard J. Tellis, 235). Apple uses this strategy to regain the cost of research and development put into the creating the product. This strategy is used by Apple to target the early buyers of its products because they less price sensitive and view the product in terms of its quality rather than the price. Apple is able to use this strategy successfully because the buyers are not attracted to pirated products because of the value they attach to the apple brand and the relationship with what they refer to as the “apple family.

These corporations have been able to succeed because of their core competencies, pricing strategy and high quality of products that has set them apart as strong brands in their respective categories. Besides, these companies have been able to embrace change in the market as well as consumer demands and buying habits and have thus worked new strategies to ensure that they stay profitable by meeting such needs. Walmart has entered the ecommerce world while Apple is strategizing on further diversification of its business categories to include products such as Apple Pay and Apple Music. By embracing this change, I am confident these two corporation will continue to thrive. References Bondar, Sergej, John C. https://www. investors. com/news/technology/walmart-vs-amazon-retail-stores-e-commerce/ Drucker, Peter F.