Revenue Strategy Essay Example | Topics and Well Written Essays - 500 words

Revenue Strategy - Essay Example 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, â€Å"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 cha in 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