Ansoff Matrix in Walmart (Walmart growth strategy)

Ansoff Matrix in Walmart (Walmart growth strategy)

This article aims to examine the application of Ansoff Matrix in Walmart. Walmart has implemented several growth strategies over the years to reach the stage where it is now. Those strategies were crafted carefully and produced excellent results; however, some of them failed as well.

Market penetration strategies of Walmart

Walmart’s market penetration strategy has been very useful to support its continual growth. Its promise of Every Day Low Price (EDLP) has drawn the attention of many customers and helped it penetrate the market further. Its special offers and deals for days such as Final Black Friday Deals are also in line with the market penetration strategy. However, it should be mentioned that special offers often affect its profit margins.

Market development strategies of Walmart

Walmart is one of the largest retailers in the world. From the USA, it has expanded to many countries such as Canada, Mexico, China, Chile, and India. It also holds equity investments in Brazil, Japan, and the UK (Walmart, 2021).

However, its market development strategy failed in Germany as it was unsuccessful in understanding the German market. It failed to offer German customers any convincing value proposition compared to what was offered by its local competitors. It flopped in Japan as well.

Product development strategies of Walmart

Walmart offers a wide selection of products. It has private label brands and invests heavily on research and development as well. In September 2020, it launched Free Assembly, a new private label line of men’s and women’s clothing. However, it is worth mentioning new product development is not its main growth focus.

Diversification strategies of Walmart

Offering new products/services to new customers is a risky strategy. However, Walmart has applied this strategy several times and was successful as well. For instance, it diversified its business model by growing related businesses such as its Walmart marketplace, financial services, and data monetization (Loeb, 2021).

In August 2021, Walmart announced the creation of a new line of business – Walmart GoLocal. It is aimed at generating alternative revenue sources with commercialisation of its own delivery platform to help businesses of all sizes to deliver their products to their customers’ doorsteps (Walmart, 2021).

Walmart is a risk aware company. Therefore, it does not shy away from exploring new things. According to Repko (2021) it eyes on using its stores, website, and massive reach to go beyond retailing and explore opportunities in advertising, health care, technology, and many more.

We hope the article ‘Ansoff Matrix in Walmart (Walmart growth strategy).’ has been helpful. You may also like reading SWOT analysis of Walmart and PESTEL analysis of Walmart. Other relevant articles for you are:

Marketing mix of Walmart (4Ps of Walmart)

Stakeholders of Walmart (Stakeholder analysis of Walmart)

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Last update: 24 November 2021

References:

Loeb, W. (2021) As Walmart plans for future growth, here’s where it is making the right moves, available at: https://www.forbes.com/sites/walterloeb/2021/02/19/walmart-reports-2020-results-and-plans-for-future-growth/?sh=3216de55f93 (accessed 22 November 2021)

Repko, M. (2021) Why an emboldened Walmart is looking to beyond retail for future growth, available at: https://www.cnbc.com/2021/02/18/why-an-emboldened-walmart-is-looking-to-beyond-retail-for-future-growth.html (accessed 23 November 2021)

Walmart (2021) Walmart launches Walmart GoLocal, a mew delivery as a service business, available at: https://corporate.walmart.com/newsroom/2021/08/24/walmart-launches-walmart-golocal-a-new-delivery-as-a-service-business (accessed 23 November 2021)

Author: Joe David

Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.