WalMart
is a global fortune 500 organization. It was founded in 1962, by Sam Walton in
his hometown of Bentonville Arkansas. Arkansas is still where the headquarters
of Walmart resides, right next to Sam Walton’s first store “Waltons.” Walmart became
incorporated in October of 1969, and was publicly traded for the first time
in 1972, at The New York Stock Exchange.[1]
Walmart has over 8,500 stores in 15 different countries, own and runs Sam’s
Club retail warehouses, and is the largest grocery retailer in the United States,
generating over 50% of their annual Billion-dollar revenue. 
When
deciding where to go grocery shopping/everyday shopping, I always choose
Walmart. One of the determining factors of choosing Walmart, are their everyday
low prices and their variety of products. I enjoy being able to buy all the
items I need at one time, so Walmart’s one stop shopping really makes them a
lead competitor in my mind. When shopping at Walmart, I am not interested in
status symbol[2] products,
unlike when shopping at the mall or more expensive/well known retail clothing
outlets. Buying as many of the products that I need at such discounted prices,
really enhances my discretionary income,[3]
and gives me the ability to save extra money to put towards any bills due that
month. I would classify my Social Class[4]
as a Middle Class American[5]
who’s spending habits fall between a tightwad[6]
and a spendthrift[7]. I feel this
combination of Social class and spending habits, really explains why I enjoy
shopping at Walmart for a large number of my purchases. Walmart offers a wide
variety of products/brands to appeal to varying Social classes, which is a
leading factor of their success. For those consumers classified as Lower
Americans,[8]
they can find affordable products through Walmart’s mass acceptance of food
stamps and store brands (relatively cheaper). Contrastingly, Walmart can also
appeal to those upper middle class Americans, by offering “deals.” In current
economic conditions, no matter what your wealth may be, consumers want deals
or discounted prices.
To
conclude, Walmart is a prime example of a globally successful firm that has the
ability to appeal to varying social classes and spending habits. I would rate
my satisfaction with Walmart (on a scale of 1 to 7 where 1 is extremely dissatisfied
and 7 is extremely satisfied) a 7, and the likelihood of me returning to, or
recommending this firm is also a 7. Overall, understanding varying social classes is pertinent for firms to do. This consumer information is necessary for competing firms, so they are better able to meet the needs and wants of their target customers. When these various social classes are established, the firm is then able to efficiently segment these groups and target them with class specific products. This implementation of STP, is what gives Walmart their never ending strategic competitive advantage(9).
[1] http://en.wikipedia.org/wiki/Walmart
[2] Products
that give a consumer some since of status.
[3] The money available to a household over and
above what it requires to have a comfortable standard of living.
[4] A way to
describe the overall rank of people in a specific society.
[5] Those
American’s who make average pay and are white collar workers.
[6] Hate to part with their money and
actually experience emotional pain when they make purchases.
[7] Enjoy
nothing more than spending.
[8] Working, not
on welfare, living standard is just above poverty.
9. A Long lasting competitive advantage.
