Business strategy of walmart pdf

Walmart is the worlds largest public corporation, biggest private employer and largest retailer. Walmart continues to expand its global operations, analysts are curious to see how the company is received and whether consumers opinions in fragmented market settings are a match with walmart s low price model. Moreover, the report contains analyses of walmarts business strategy, leadership and organizational structure and its marketing strategy. The brands growth is driven mainly by its everyday low prices strat. Historically, walmart is known for its two main business keys. Walmart internationals business represents a solid chunk of walmarts overall. Jan 31, 2019 this article is about how walmart makes money. Business analysis for walmart, a grocery retail chain, and. Business level corporatelevel strategies business level strategies for walmart in business, three major strategies comprising of cost leadership, differentiation, and focus strategies exist. In recent years the strategy field has become increasingly interested in the study of. Pdf the walmart corporation is one of those companies that have been impacted by change at all levels as they conduct business and expand their. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Walmarts recent change to free twoday shipping for online orders, no membership required, is the latest in a series of moves the company has made to fight amazon and grow its e.

Walmart has continued to retain the top position on the fortune 500 list consecutively for several years. Give the customer what they want, how they want it. Walmart transportation has a fleet of 6,100 tractors, 61,000 trailers and more than 7,800 drivers. Firstly, we explain the business segments of walmart and how the company generates revenue from each of those segments. A business strategy is a deliberate vision to get toward a desired longterm goal. Four of america s 10 richest individuals are from walmart s lowprofile walton family. Page 3 of 22 the generic strategy and intensive strategies grow walmarts business and ensure its competitive advantages, to achieve goals based on the. While both companies have large retail stores with many products, their business strategies are different. Businesslevel corporatelevel strategies businesslevel strategies for walmart in business, three major strategies comprising of cost leadership, differentiation, and focus strategies exist. As for walmart, its corporatelevel strategy and businesslevel strategy, as we analyzed above, is the lowcost leadership. Industry analysis retail company walmart save money.

The focus strategy emphasizes on providing services and products to a specified buyer group or market. We have good momentum in the business, were executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money, said mcmillon. Walmart strategy aims for technologies, innovation, and. Walmart has a plan to dominate the online grocery business. Sam walton opened the first walmart in rogers, arkanses, in 1962. Managing our business on a daily basis is important, but our most important strategic decisions are made in light of what we want our company.

Walmart is aggressively investing in ecommerce acquisitions and reorganizing to become more digitally savvy. Walmarts corporate management strategy involves selling high quality and brand. Michael porters model defines cost leadership as a generic competitive strategy that focuses on achieving low costs. Its business strategy is mainly based on being competitive in terms of assortment, differentiating with the way people access, leading in terms of price, and delivering an incredible experience with the motto of edlp every day low prices. The company has become a retail giant offering a wide range. While every employee, partner, and stakeholder of the company focus on fulfilling a single business objective, their activities are defined by various business strategies according to their level in the organisation. Walmart is the largest retailer in terms of revenues and number of employees globally. What is the business strategy and business model of walmart. Our distribution operation is one of the largest in the world servicing stores, clubs and direct delivery to customers. Corporate level strategy is longrange, actionoriented, integrated and comprehensive plan formulated by the top management. Strategic sme cultural agency and global market economy superstructure, based on.

Here is the marketing strategy of walmart analysed in detail. Changes in the retail environment and evolving consumer preferences have compelled walmart to innovate upon its business model and include two new strategic levers. Walmart is the worlds largest company by revenue and the largest retailer in the world. In order to address this business analysis, it is necessary to study the economic. Walmart business strategy is based on everyday low prices philosophy of the company. Its strategy is based on leading on price, invest in differentiating on access, be competitive on assortment and deliver a great experience by the motto of edlp every day low prices everyday low cost edlc is walmarts commitment to control expenses. A business model is a great tool to execute a business strategy. Business and corporatelevel strategies for walmart bartleby. Walmart highlights progress on strategic initiatives and. What is the business strategy and business model of. Business strategies of wal mart free download as powerpoint presentation.

Walmart business is being led by the following four strategic pillars. Each company will work to improve the overall performance of their production, whether it be a poultry plant, plumbing company, or a retail company, everyone wants to push out the greatest amount of product. The results reveal that while walmarts business model did not change during the 36. Value chain analysis, walmart business strategy, strategic management. Mar 28, 2016 walmart business strategy is based on everyday low prices philosophy of the company. Marketing strategy of walmart walmart marketing strategy. A business strategy, in most cases, doesnt follow a linear path, and execution will help shape it along the way. Business level strategy of walmart international introduction in order to have a detailed analysis of business level strategies, we have chosen walmart international as the focus of our analysis. Walmart wont stay on top if its strategy is copy amazon. Walmart swot analysis 5 key strengths in 2020 sm insight. Jan 03, 2020 business strategy vs business plan vs business model the business strategy is a part of the business plan which is a part of the big conceptual structure called the business model. The brands growth is driven mainly by its everyday low prices strategy. We are peopleled and techempowered, and that makes investing in our associates a strategic priority. Thus, they exert pressure on walmarts business to push the company to consider their interests.

Pdf strategic management study of walmart inc delita kusuma. When sam walton created walmart in 1962, he declared that three policy goals would define his business. Quantifying walmarts sources of advantage november 6, 2012 humberto breasolis ramon casadesusmasanell emili grifelltatje a b s t r a c t in recent years, the concept of the business model has received substantial attention in the strategy. Through his savvy, and sometimes unusual, business practices, he and his associates led the company forward for thirty years. Introduction in recent years the strategy field has become increasingly interested in the study of business models.

April 2002, washington dc contributors to this report. Aug 23, 2019 the business strategy of walmart a case study introduction. The company operates a business model with three primary units that in 2018 comprise walmart u. Business analysis for walmart, a grocery retail chain riunet. Positioning strategy plays an important role in companys success. Walmart strategy consists of using latest technologies to boost their operation process and to enhance the customer experience, utilizing patent protection for securing its inhouse innovations, and acqusitions to expand its business in the international markets.

These stakeholders are the people or groups that the business affects directly or indirectly. Strategic human resource management in walmart stores. The major business initiatives are used in walmart and what software is used. Walmart has been a world leader in providing all sorts of products to its customers. Yet while achieving a longterm goal a business strategy set a vision, mission and value proposition that can be executed through several possible business models. Walmarts generic competitive strategy and intensive. Walmart struggles with a maturing and oversaturated u. The business strategy of walmart a case study introduction. Walmart serves nearly 270 million customers who visit its more than 11,700 stores. It specializes in offering products at the lowest price. Walmart targets middle income consumers through its everyday low prices strategy not only in the u. Besides the above factors, walmart builds its lowcost leader on employment policies that help it to achieve extraordinarily low employment costs.

Walmart president and ceo doug mcmillon will provide an update on how the company is uniquely positioned to win. Dec 17, 2017 walmart is the largest retailer in terms of revenues and number of employees globally. As a lowcost producer of retail services and related business outputs, walmart is able to compete based on low selling prices. The walmart business model in a nutshell fourweekmba. It was founded less than fifty years ago by sam walton and his brother bud in bentonville, arkansas usa. It is used to ascertain business lines, expansion and growth, takeovers and mergers, diversification, integration, new areas for investment and divestment and so forth. Walmart began its operations with two steps ahead of its competitors, the company began with removing a few links in the chain. Then, we present our analysis of walmart business strategy and its impact on walmart business model. Create better business strategies using business model data vizo is a platform that searches, analyzes and visualizes the worlds collective business model intelligence to help answer strategic questions, it combines the simplicity of business model canvas with the innovation power of mashup method. Patrick hayden, seung lee, kate mcmahon, mike pereira. Apr 18, 2017 walmart is aggressively investing in ecommerce acquisitions and reorganizing to become more digitally savvy. The business goal is achieved by the effective execution of different business strategies. Walmarts marketing strategy has positioned itself as a company offering products at the lowest price. For walmart, the major business initiative being used is supply chain management.

Its strategy is based on leading on price, invest in differentiating on access, be competitive on assortment and deliver a great experience by the motto of edlp every day low prices. Walmart began its operations with two steps ahead of its competitors, the company began with removing a few links in the chain, working directly with the manufactures to cut costs. It through two different to expand their international business market. In other words, walmart pursues cost leadership business strategy enabled by the economies of scale derived by the company in a significant extent. Walmart has a plan to dominate the online grocery business and its working the underlying philosophy of the retail giants model is simple. This paper analyzes walmart with respect to its external and internal environment. Some see the strategy as long overdue and brilliant. Walmarts stakeholders influence the strategic direction of the company. Staying on top of the fortune 500 a case study on walmart stores inc. Beside, the author declares that walmart take other companies away from competition because. Jan 10, 2020 this walmart swot analysis reveals how the largest company in the world uses its competitive advantages to dominate and successfully grow in the retail industry.

While walmarts public affairs strategy works well with its corporate strategy. This walmart swot analysis reveals how the largest company in the world uses its competitive advantages to dominate and successfully grow in the retail industry. W e feel that there are a few recommendations which could make the company work. Business strategy analysis of walmart sam walton, a leader with an innovative vision, started his own company and made it into the leader in discount retailing that it is today.

This case study was produced for the corporate strategy and public affairs lecture, the graduate school of political management, george washington university. Walmart boasts over 11,700 stores and serves about 270 million customers. Walmart business strategy and competitive advantage. For these several years, walmart has been trying hard on expand its stores outside the united states.

A supply chain management system is an it system that supports activities by automating the tracking of inventory and information among business processes and across companies. The business model is a conceptual structure that explains how the company operates, makes money, and how it intends to achieve its goals. Then well focus on its functional strategy, especially its hr strategy. The first walmart was opened in 1962 by founder sam walton, in rogers, arkansas. A business strategy is a deliberate plan that helps a business to achieve a longterm vision and mission by drafting a business model to execute that business strategy. Beside, the author declares that walmart take other companies away from competition because walmart deal with other manufactories from overseas.