Why is Walmart considered to be a channel captain - Essay Example

Q Ans. Walmart is considered to be a channel captain because it is the largest retailer in the US. Just the value of Walmart is worth $100 billion more compared to Target (“Walmart”). Its daily bargains and low prices has provided Walmart with a unique and unbeatable competitive advantage. Being the largest retailer, Walmart assumes immense power to build, direct, control, and administer brands. There are many popular brands competing with each other in the market; yet, if they must use Walmart as a platform to reach their consumers or have their outlets in Walmart, they may have to customize their products or services in accordance with the expectations and standards of Walmart.

Walmart is also a channel captain because it has been in the industry for a long time now. It is well aware of the vendors, inventory, resources, cost-effective yet efficient means of transport, and the ever-changing expectations of the consumers with respect to creativity and innovation. Walmart is capable of utilizing this experience to invest in profitable plans. “With the rise in power of national chain stores and private-brand merchandise, many large retailers such as Wal-Mart are taking a leadership role in the channel” (Pride and Ferrell 403).

Walmart knows how to get quality products made that provide value to the consumers while keeping the costs low so as to not only make good profit but also keep the consumers satisfied. To summarize, Walmart is a channel captain because of its huge number of outlets spread all over the world, its strong image as a cheap and well-equipped retailer, and its high purchasing volume. Works Cited:Pride, William, and Ferrell. Marketing. Cengage Learning, 2008. Print. “Walmart.” N.d. Web. 23 Feb. 2015. .