How Walmart's pricing strategy continued to shape its growth

Respect to individual 

Although Walmart pay their associates an annual salary of $11,700, it still has respect for them. The pay given to associates is determined by its unique cultural phenomenon of great economic force. Walmart, has adopted a pricing strategy that has continued to shape its growth. Consequently, the unique culture has given the company extraordinary power of shaping the global labor markets. In that sense, it can manage to pay associates $7 an hour without any benefits, and still manage to remain a well-paying organization in urban areas. Although only a section of the associates have access to health benefit, the company has replaced it with performance-based bonuses and as such, associates feel motivated to work even harder. Also, the company has increased premium cost for workers by over 200% since 1993, despite the fact that, medical care inflation only increased by 50% in the same period. 

Service to Customers 

The organization is not determined put their customers out of business. Its main target is to give their customers convenience and low prices. Customers can virtually do their entire shopping under one roof. The company is not determined to draw traffic away from town; it is a way of ensuring customers has pleasant and friendly shopping experience. Even though clients will have to move outside town, they are guaranteed to get all their items in one place. Notably, Walmart has embraced specialty, thus it ensures no time wastage for customers while looking for items. The allegation that the company puts American industries out of business and denying locals employment is not appropriate. The company has associates in different countries and as such, it has to give jobs to people from those countries. 

Strive For Excellence 

Walmart has respect for all stakeholders namely customers, suppliers and associates. Through respect, it has managed to serve communities well, and as such, it continues to do business while committed to excellence. For instance, by the end of 2010, the number of distribution centers and stores grew tremendously from 3368 to 3600, and number of associates equally increased from 1.04 million to 1.4 million. Such growth is only possible through excellence. According to corporate fact sheet, the company full-time hourly wage is $11.75 and not a measly $7 as most people have been made to believe. Walmart rhetoric is factual, as it does a lot in the way of offering philanthropy and scholarships, besides offering low prices and convenience.