This particular case clearly shows how the Internet, especially social media, are being used as tools to enhance or tarnish reputations. Without the use of the Web, the two advocacy groups would have never raised as much support as they did, and information would not have been disseminated as rapidly. Leaked documents critical of Wal-Mart were posted on the Web, opening the site for comments from visitors. Social media such as YouTube and blogging allowed these organizations to form with smaller budgets but still be able to communicate to the entire nation in a fast and cost-effective way. The case also shows the ethics of social media, as it describes the controversy surrounding the Wal-Mart funded Wal-Marting across America blog.
Wal-Mart’s EDLP strategy had lack of a strategic fit to the nature of UK consumers. UK consumers were quality conscious and tend to be more brand-loyal, less likely to switch to less expensive products. UK consumers were unwilling to compromise the customer service and the quality for the low price, and expected to see sales people in each aisle of the retail stores and aggressive promotion in the value of service and products offered by the retailers (Ramstad, 2006b). UK consumers perceived Wal-Mart stores as a “cheap marketplace” with warehouse-style layout and poor quality products (Kim and Sim, 2006). This retail format was not well received by the UK consumers who were used to the assistance of the sales ladies who gave out free samples and helped packaging and wrapping the products in the store (Kim, 2001). The UK discount stores even had employees at the parking lot that gave out the parking tickets and guided the parking directions. Wal-Mart’s EDLP was perceived to be insufficient “value” in the minds of UK consumers.
Wal-Mart decided to enter in to Canada Market and decided to approach to the different franchises so that the customers in the Canada and Mexico will have the correct idea about their requirement. The company also acquired UK Company ASDA so that it can be reach to the more customers in the Britain can be reached. The Company opened its 16 stores in Korea, and opened discount chain. The company earned revenue USD$ 883 million in May, 2006. Thus company tried all the entry marketing strategies in different countries to attract the customers and have the reach to the number of customers. Wal-Mart learned from the USA marketing strategy as it got failed some time by using the same strategy.
This complete analysis about the Wal-Mart marketing strategy and adopting the new business like ASDA and others shows that Wal-Mart got failed in new countries and adopting new market strategies according to their requirement.