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  • Subject Name : Management

Introduction for Walmart Case Study

An, American multinational retail giant named as Walmart, has chains of supermarkets discount stores and grocery stores all over the world. It is one of the most successful businesses of all time. In1962, Sam Walton founded the company which holds $514.405 billion as stated by Fortune 500 list of 2019. Their main objective is customer satisfaction, which is why this family owned business has been ruling the retail market and annihilating their competition for years.

Business Strategy for Walmart Case Study

Walmart is able to maintain its superior position is because their business strategies of setting everyday low prices ensure that their customers keep coming back. They use competitive advantage and price leadership enabled by their economies of scale to the maximum extent to incur profits. Walmart’s key objective has always been providing it’s the products at lowest possible price with a broad range as well. They let their customers choose the most convenient channel possible for this process and they keep changing the assortment of prices and revising rates and access constantly( Xie,2019)..

Cost leadership or price leadership is where the competitive advantage of Walmart comes to practice. At the management level their strategy has always been to enable the consumers to associate Walmart with easy access and affordable prices. They are able to do so because they always working at increasing their focus on customer services.

With every passing year, Walmart revises its company policies to create better customer experiences. Walmart is now catering to the diverse needs of its consumer base- from different goods for various sensibilities to integrating their physical stores with digital innovation- they are doing it all. They also provide delivery services thus ensuring that their customers always have easy access. The creation of one seamless shopping experience though all sources helps them retain customers like no other company (Wells,2016).

Analysis: Walmart Case Study

Walmart tries to create a unique customer centric experience that incorporates digital aspects and ecommerce along with omnichannel to give maximum ease to its customers.

Their aim has always been to lead on price, and they are always looking to invest in differentiated access as they understand the potential for it in future markets. The company aims to earn the trust of their customers by providing them with a broad assortment of quality merchandise at low prices everyday. It continues to exercise is power as price leader and drives out competition. Walmart is constantly creating an insurmountable impact every day, all across the world in numerous stores.

The main ideas behind Walmart’s business plan are economies of scale where they can have fixed prices over many products, this makes them one of the cheapest places to shop from. They are all about making efficient use of their resources like distribution systems, knowledge and capabilities, skills in all their stores all over the world. Their new initiative of the shop if Omni channel that helps sellers as well as retailers and lets them create a virtual marketplace is another brilliant initiative.They are constantly working on improving their operation of opening new stores hiring new employees and managers and integrating better practices at work places to ensure the best consumer experience.

Recommendations on Walmart Case Study

Walmart’s supply chain network is active on delivering good to Walmart stores and other hypermarket but they must induce the pull of digitization to create an overhaul in the way grocery delivery services are perceived. This would imply taking care if the logistics by investing capital to supplement its ex commerce network and closing its gap with competitors like Amazon. Powering their ecommerce and online presence teaming up with various social media platforms is an ideal upgrade in marketing strategy. Another masterstroke could be the creation of a new company – Walmart logistics. This would sell third part logistic services. Not only would they be competing well, but they would also be acquiring their own XPO logistics and expanding their last mile delivery capabilities.

Conclusion on Walmart Case Study

Walmart, with due credit to its market position, can experiment with digital ways and take risks without having to worry about anything. By adopting newer ways to enter the digital retail landscape while strengthening the company’s retail leadership position, Walmart can continue to exercise its market power even in the near future.

References for Walmart Case Study

Ciravegna, L., &Brenes, E. R. (2016). Learning to become a high reliability organization in the food retail business. Journal of Business Research, 69(10), 4499-4506.

Hunt, I., Watts, A., & Bryant, S. K. (2018). Walmart’s international expansion: Successes and miscalculations. Journal of Business Strategy.

Wells, J. R., & Ellsworth, G. (2016). The Inexorable Rise of Walmart? 1988—2016.

Xie, Y., & Cooke, F. L. (2019). Quality and cost? The evolution of Walmart's business strategy and human resource policies and practices in China and their impact (1996–2017). Human Resource Management, 58(5), 521-541.

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