pricing strategies of wal mart

A Brief Analysis on a Current Issue in Organizational Studies: The

traditional goals and philosophies that Sam Walton, founder of

Wal-Mart, has left behind, is still leading Wal-Mart as one of the

most successful retailers in history. He believed in three guiding

principles: 1. Customer Value and Service; 2. Partnership with its

associates; 3. Community involvement. Respect to Wal-Mart’s

secrets to success, Walton has been quoted saying, “It has to do

with our customers’ expectations every hour of every day.” One of

his deepest beliefs was that the customer is always right and his

stores run mainly on this principle. Strategic pricing is also one of

his many top formulas regarding his business

accomplishments. Sam Walton implemented viable pricing

strategies such as the frequent use of odd number pricing,

various different standard markup a 

Wal-Mart also emphasizes on the strategy of odd number pricing.

Other companies tend to compete with these prices and

sometimes are successful with lower prices to match or beat your

price. "Their highest priority is making sure everybody at all times

in all cases knows who"tms in charge, and it"tms Wal-Mart. Wal-

Mart"tms "everyday low price" philosophy is running their stores

quite successfully. When comparing two prices such as

14. Tommy Hilfiger wants to emphasize the quality of the products

compared to Wal-Mart, a discount retailer who is strictly based on

low prices. Many businesses, mainly small companies, use odd

number pricing. pproaches and solid market penetration to

elevate his company"tms progress in the business world. This

approach works best when authentic businesses have been

taking advantage of the market by charging more then well-suited

prices. Wal-mart would offer a men"tms shirt for 14. This strategy

has been tested and has proven that people tend to buy items,

which are odd number priced, more than, a price ending of zero.