executive summary of walmart case study

• Work & Careers
• Life & Arts

Case study: Walmart

• Case study: Walmart on x (opens in a new window)
• Case study: Walmart on facebook (opens in a new window)
• Case study: Walmart on linkedin (opens in a new window)
• Case study: Walmart on whatsapp (opens in a new window)

By Daniel Diermeier

Simply sign up to the US & Canadian companies myFT Digest -- delivered directly to your inbox.

Arkansas’s Sam Walton founded Walmart in 1962, based on the idea of bringing big-city discounting to his corner of the rural American South. To make up for low profit margins, the company had to sell higher volumes in lots of big stores.

It lowered costs by dealing directly with manufacturers, investing in technology and logistics, and increasing worker productivity, while keeping labour costs low.

The challenge.

By 2004, Walmart topped the Fortune 500 list, both as the world’s largest corporation and the US’s biggest non-governmental employer. But it had endured years of criticism, for its impact on the environment and provision of healthcare for employees, to concerns about the effect of its stores on communities.

Walmart’s critics began to mount protest campaigns that resonated with an increasing portion of the public, including more affluent, middle-class urban consumers – a group the company had identified as its next key market if its growth rates were to improve.

The sustained criticism led to a loss of customers and delays in opening new stores.

The response.

Lee Scott, chief executive, decided to adopt a strategy to restore Walmart’s reputation. The company set up political campaign-style “war rooms” and embarked on an ambitious environmental sustainability initiative.

But then, when hurricane Katrina approached the US coastline in August 2005, came an opportunity to remind the public of the benefits of its basic value proposition – getting goods to people as efficiently as possible. Walmart already had an Emergency Operations Center, which it mobilised when news of the approaching storm was picked up by Walmart’s response team.

By accessing its vast customer database, the company could anticipate the needs of customers in hurricane-threatened areas with great accuracy and specificity. For example, Walmart had learnt that after an event such as a hurricane, there is a surge in demand for chainsaws.

Walmart’s warehouses were told to prepare high-demand items – such as bottled water, flashlights and portable electricity generators – for shipment to store managers, using the company’s vast trucking network.

When Walmart meteorologists noted that Katrina had changed course to head directly towards New Orleans, the company rerouted the goods to areas in the path of the storm.

Walmart drivers were greeted as heroes when its trucks reached the disaster area days before government relief efforts.

The Katrina response re-energised the beleaguered company, which received credit for exploiting core competencies: knowing what customers want and getting it to them fast and efficiently.

Key lessons.

The reputation of companies is not driven just by customer experience. Highly public events can have a significant impact on customer and stakeholder perceptions. Such events might be a “corporate crisis” or a natural disaster, but either can be opportunities for companies to leave a positive lasting impression.

At the time of a natural disaster, companies can show themselves competent and caring – and Walmart excelled in both areas. In addition, at such times, companies are not viewed as providers of goods and services, but as members of the community.

However, they should avoid anything that can be interpreted as self-promotion or self-interest. Walmart allowed store managers and truck drivers to tell their own individual stories of heroism.

Reputation management requires a tight connection with the core identity and strategy of a company. It also requires an ability to think strategically from the point of view of an increasingly sceptical public. Walmart embraced its success in responding to the Katrina challenge as an opportunity to demonstrate the positive social value of its core business model.

The writer is a professor of managerial economics and decision sciences at the Kellogg School of Management, Northwestern University, and the author of ‘Reputation Rules’

Promoted Content

Follow the topics in this article.

• US & Canadian companies Add to myFT
• Retail & Consumer industry Add to myFT
• Retail sector Add to myFT
• Work & Careers Add to myFT
• Companies Add to myFT

Comments have not been enabled for this article.

“We Need People to Lean into the Future”

A conversation with Walmart CEO Doug McMillon by Adi Ignatius

Summary .   

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

Partner Center

• THE STRATEGY JOURNEY Book
• Videos & Tutorials
• Strategy Journey Analyzer [QUIZ + WORKBOOK]
• COMMUNITY FORUMS
• Transforming Operating Models with Service Design (TOMS) Program
• ABOUT STRATABILITY ACADEMY

Walmart Business Strategy: A Comprehensive Analysis

By   Julie Choo

Published: January 5, 2024

Last Update: January 5, 2024

TOPICS:   Service Design

In the dynamic landscape of retail, Walmart stands as a behemoth, shaping the industry with its innovative business strategies . This article delves into the core of Walmart’s success, unraveling its business strategy and digital transformation from top to bottom.

Walmart Business Strategy

Walmart’s business strategy is a well-crafted tapestry that combines a variety of elements to secure its position as a retail giant. At the heart of this strategy lies a robust operating model approach that encompasses a diverse range of channels and tactics. 

Transition to An OmniChannel Marketplace

The Walmart business strategy includes leveraging its vast physical presence through an extensive network of stores, drawing customers in with the promise of Everyday Low Prices (EDLP). This commitment to affordability is not just a slogan; it’s a cornerstone of Walmart’s marketing ethos, shaping consumer perceptions and driving foot traffic to its brick-and-mortar locations.

Building Strength via its Emerging Digital Operating Model

Walmart’s business business strategy extends beyond traditional advertising methods and its strength is in its operational strategy where it is charging ahead with digital transformation to become a more complete Omnichannel Marketplace to combat competitors such as Amazon. The retail giant has embraced the digital era, utilizing online platforms and e-commerce to reach a broader audience. Part of this digital evolution involves the strategic placement of distribution and fulfillment centers , ensuring efficient order processing and timely deliveries. By strategically integrating distribution and fulfillment centers into its operating model , Walmart maximizes operational efficiency, meeting customer demands swiftly and solidifying its reputation for reliability in the competitive retail landscape.

In essence, Walmart’s holistic digital operating model backed by a evolving digital transformation  strategy, encompassing physical stores, online presence, and strategically placed distribution hubs, reflects a dynamic and adaptive approach to consumer engagement and satisfaction. 

Walmart’s Existing Business Model Before Digital Transformation

Walmart’s retail business .

Walmart stores, comprising a vast network of discount stores and clubs, serve as the backbone of the retail giant’s physical presence. Walmart’s store format, ranging from neighborhood discount stores to expansive membership-based clubs, caters to a diverse customer base. These Walmart stores are strategically positioned to provide accessibility to a wide demographic, offering a one-stop shopping experience.

The discount stores, characterized by their commitment to Everyday Low Prices (EDLP), have become synonymous with affordability, attracting budget-conscious consumers. Simultaneously, Walmart clubs offer a membership-based model, providing additional benefits and exclusive deals. The amalgamation of these store formats under the Walmart umbrella showcases the company’s versatility, catering to the varied needs and preferences of consumers across different communities and demographics.

Walmart Pricing Strategy

Pricing strategy.

Walmart’s pricing strategy and its competitive advantage are substantiated by reputable sources in the retail industry. The pricing index data, indicating that Walmart’s prices are, on average, 10% lower than its competitors, comes from a comprehensive market analysis conducted by Retail Insight, a leading research firm specializing in retail trends and pricing dynamics.

Everyday Low Prices

Walmart’s success in the retail sector can be attributed to its commitment to Low Price Leadership, a strategic approach that revolves around providing customers with unbeatable prices. Leveraging Economies of Scale, Walmart capitalizes on its vast size and purchasing power to negotiate favorable deals with suppliers, enabling the company to pass on cost savings to consumers. The integration of Advanced Technology into its operations is another pivotal aspect of Walmart’s strategy. From inventory management to supply chain optimization, technology allows Walmart to enhance efficiency and keep prices competitive.

Walmart strives to keep it’s pricing tactics to the concept of “Everyday Low Prices” (EDLP). This philosophy ensures that customers receive consistently low prices on a wide range of products, fostering trust and loyalty. Additionally, the Rollback Pricing strategy involves temporary price reductions on select items, creating a sense of urgency and encouraging sales. Walmart’s Price Matching Policy, both in-store and online, further solidifies its commitment to offering the best deals. This policy assures customers that if they find a lower price elsewhere, Walmart will match it.

The insight into Walmart’s “Everyday Low Prices” (EDLP) philosophy and its impact on a 15% lower average price for common goods compared to competitors is derived from a detailed report published by Priceonomics , a respected platform known for its in-depth analyses of pricing strategies across various industries.

The statistics regarding Walmart’s market share of 22% in the U.S. grocery market and the 19% higher customer loyalty rate compared to competitors are sourced from recent market reports by Statista, a reliable and widely used statistical portal providing insights into global market trends and consumer behavior.

Multiple layers of Discount

Walmart’s embrace of Multiple Discounts adds another layer to its pricing strategy. Whether through seasonal promotions, clearance sales, or bundled deals, the company provides various avenues for customers to save money. This multifaceted approach to pricing reflects Walmart’s dedication to delivering value to its customers, ensuring that affordability remains a cornerstone of the retail giant’s identity.

These sources collectively reinforce the significance of Walmart’s pricing strategy in maintaining its competitive edge and dominating the retail landscape

Walmart’s Servicing Business

Walmart’s strategic expansion into the servicing business marks a transformative shift, positioning the retail giant as a comprehensive one-stop-shop that extends beyond conventional retail offerings. This venture encompasses an array of lifestyle services, ranging from financial services to automotive care and healthcare clinics. Walmart’s aim is clear: to seamlessly integrate into the daily lives of customers, providing not only products but also essential services, thereby enhancing its role in customers’ routines.

In response to the evolving preferences of contemporary consumers who prioritize convenience and accessibility, Walmart’s strategy seeks to streamline the customer journey. The provision of a diverse range of services alongside its traditional retail offerings exemplifies Walmart’s commitment to simplifying the consumer experience. This comprehensive approach not only caters to the varied needs of customers but also cultivates a sense of loyalty, as individuals find value in the convenience of addressing different requirements all under one roof.

The multifaceted nature of Walmart’s strategy is anticipated to foster increased customer retention. By offering not only a wide array of products but also an extensive range of lifestyle services, Walmart solidifies its position as a retail powerhouse, adapting to the changing landscape of customer-centric businesses. The convenience and value embedded in this approach are poised to elevate Walmart’s stature, making it an indispensable part of customers’ lives.

SWOT Analysis of Walmart’s Business strategy

As we navigate Walmart’s digital transformation journey, a SWOT analysis reveals key insights into its strengths, weaknesses, opportunities, and threats, guiding strategic decisions for sustained success in the dynamic retail industry that is operating in an increasingly digital economy.

SWOT Analysis of Walmart:

• Strong Brand Recognition: Walmart’s strength lies in its widely recognized and trusted brand, fostering consumer confidence and loyalty.
• Diverse Revenue Stream: The company’s adaptability is evident through a diverse revenue stream, navigating various markets and industries to maintain financial resilience. Per Walmart’s Q3 FY23 Earnings , a breakdown of walmart’s income can be recognised through its Sam’s Club membership sales (Up by 7.2%), Walmart U.S Comp Sales (Up 4.9%), Walmart U.S. eCommerce (up by 24%), and Walmart International sales (up by 5.4%). 
• Economies of Scale: Walmart leverages its extensive size for economies of scale shown by its strong revenue growth of 5.3% per 2022 and 2023 consolidated Income statement, enabling cost advantages in procurement, operations, and overall efficiency. 
• Strong Customer Base: With a vast and loyal customer base, Walmart establishes a robust foundation in the retail sector, emphasizing customer retention and sustained business growth as per market share stat of 60% shown on the Market retail/wholesale industry dominated by Walmart.

Weaknesses:

• Labor Relations: Walmart has faced criticism for labor practices, including low wages and labor disputes.
• E-commerce Competition: Despite significant strides, Walmart faces intense competition from e-commerce giants (e.g, amazon, eBay), impacting its online market share.
• Over Reliance on US Market: A substantial portion of Walmart’s revenue is generated in the United States, making it vulnerable to domestic economic fluctuations.
• Inconsistent customer service: represents a weakness in Walmart’s SWOT analysis, as variations in service quality across different locations may impact the overall customer experience, potentially leading to customer dissatisfaction and diminished brand perception.

Opportunities:

• E-commerce Expansion: Further growth in the online market allows Walmart to capitalize on changing consumer shopping habits.
• International Expansion: Targeting untapped markets presents opportunities for global revenue diversification.
• Health and Wellness Market: The growing trend towards health-conscious living provides avenues for expansion in the health and wellness sector. Increased understanding of customer journeys in these niches is key to begin to build stickiness effects.
• Technological Innovations: Embracing cutting-edge technologies can enhance customer experience and operational efficiency through a growing Omnichannel marketplace. It is vital to master data science and begin to leverage AI in the battle to understand consumer behaviors and deliver a remarkable experience.
• Competition: Intense competition from traditional retailers and e-commerce platforms poses a threat to Walmart’s market share such as Costco, Target and Amazon.
• Regulatory Challenges: Changes in regulations, especially related to labor and trade, can impact Walmart’s operations and costs. One such example is the metrics shown per Walmart’s ethics & compliance code of conduct aligning to regulatory challenges in culture, work safety, risk mitigation and more. 
• Economic Downturns: Economic uncertainties and recessions may lead to reduced consumer spending, affecting Walmart’s revenue.
• Supply Chain Disruptions: External factors like natural disasters or geopolitical events can disrupt the global supply chain, impacting product availability and costs. Such threats are specifically addressed by Walmart’s Enterprise Resilience Planning Team .

More on Walmart’s Online Competitors

Walmart faces formidable competition in the online retail arena, with key rivals such as Amazon and Target vying for a share of the digital market. Amazon, known for its extensive product selection and swift delivery services, poses a significant challenge to Walmart’s e-commerce dominance. Target, on the other hand, leverages its brand appeal and strategic partnerships to attract online customers. To counteract these competitors, Walmart employs a multifaceted approach that combines technological innovation, competitive pricing, and strategic collaborations.

Walmart strategically invests in advanced technologies to enhance its online platform and improve the overall customer experience. The integration of artificial intelligence (AI) and machine learning enables Walmart to provide personalized recommendations, similar to Amazon’s renowned recommendation engine. Additionally, Walmart’s commitment to competitive pricing aligns with its traditional retail strength, offering Everyday Low Prices (EDLP) and frequent promotions to attract budget-conscious consumers, countering the pricing strategies employed by Amazon and other competitors.

Conducting a thorough SWOT analysis (such as this example from the Strategy Journey Book – 2nd Edition) allows Walmart to capitalize on its strengths, address weaknesses, seize opportunities, and mitigate potential threats, contributing to sustained success in the ever-evolving retail landscape.

Walmart’s Digital Transformation Strategy in the new ERA of AI-led Customer Centricity 

Walmart’s online business strategy.

Overall, Walmart’s e-commerce strategy is customer-centric, driving substantial sales growth by tailoring its approach to the evolving needs of online customers. Operating a multitude of specialized e-commerce websites across diverse product categories, Walmart strategically positions itself on various e-commerce platforms for market penetration within the US.

Servicing Relevant Customer Journeys & Sustainable Transformation

Walmart’s evolving online strategy is characterized by a dual focus on extensive product offerings and technological sophistication, with concrete examples per its strategic partnership with Adobe in 2021 to integrate walmart’s marketplace, online and instore fulfillment and pickup technologies with Adobe commerce showcasing its commitment to a seamless customer experience. The integration of advanced tools is exemplified by the implementation of an efficient order processing system. For instance, Walmart employs real-time inventory management and automated order fulfillment , ensuring that customers experience timely and accurate deliveries. Statistics show an increasing number of fulfillment centers through FY2022 and FY2023 reports per statista .

Emerging predictive capabilities supported by Data Science and AI

In addition, the technological depth extends to personalized experiences, illustrated by Walmart’s robust recommendation engine. By analyzing customer preferences and purchase history, the system suggests relevant products, enhancing the entire customer journey. This personalized touch not only reflects the user-friendly interface but also demonstrates Walmart’s dedication to tailoring the online experience to individual needs.

Focus on seamless CX and UX to improve customer stickiness

Furthermore, Walmart’s commitment to a seamless online interaction is evident in its streamlined navigation features. The website’s intuitive design and optimized search functionality provide a smooth browsing experience for customers. This emphasis on user-friendliness goes beyond mere aesthetics, ensuring that customers can easily find and explore products, contributing to a more engaging online experience. Improved engagement is at the heart of Walmart’s strategy to foster stickiness effects, both digitally and to also build on brand stickiness too.

By investing in cutting-edge technologies while transforming using Human Centered design practices focused on CX and UX, Walmart not only navigates the complexities of the e-commerce landscape but also enhances the overall satisfaction and engagement of its online customers. These examples underscore Walmart’s strategic approach to digital transformation, where technological sophistication is not just a feature but a tangible means to elevate the online shopping experience. 

Walmart International Business

Successful international business expansion requires operating model transformation, and Walmart’s strategy is characterized by a blend of strategic acquisitions, partnerships, and a keen understanding of local markets. This is also how Walmart is operationally applying AI, via strategic partnerships as it continues to build its capabilities to improve its agility to implement transformation and go to market faster, rather than trying to build everything from scratch.

A Sustainable Diversification strategy that adapts to local markets  

Walmart’s international business expansion is a testament to its strategic approach in entering diverse markets and adapting to local nuances. One notable example of Walmart’s successful international expansion is its entry into the Indian market. In 2018, Walmart acquired a majority stake in Flipkart, one of India’s leading e-commerce platforms. This move allowed Walmart to tap into India’s burgeoning e-commerce market, aligning with the country’s growing digital consumer base.

The acquisition of Flipkart exemplifies Walmart’s strategy of leveraging local expertise and established platforms to gain a foothold in international markets. Recognizing the unique characteristics of the Indian retail landscape, where e-commerce plays a significant role, Walmart strategically invested in a company deeply embedded in the local market. This approach not only facilitated a smoother entry for Walmart but also enabled the retail giant to navigate regulatory complexities and consumer preferences effectively.

Another example of Walmart’s commitment to tailoring its offerings to meet local needs is further highlighted in its expansion into China where Walmart adapts its store formats to cater to specific consumer preferences. 

In China, Walmart has experimented with smaller-format stores in urban areas, recognizing the demand for convenient and accessible shopping options. This adaptability showcases Walmart’s understanding of the diverse economic and cultural landscapes it operates in, contributing to its success on the global stage.

Working with partners to diversify and build a sustainable business model 

Collaborations and strategic partnerships play a pivotal role in Walmart’s competitive strategy. In 2023, Walmart has outlined plans to invest heavily into AI automation fulfillment centers to improve its unit cost average by 20%, increasing efficiency in order fulfilments and operations. 

The acquisition of Jet.com in 2016 expanded Walmart’s digital footprint and brought innovative talent into the company. Furthermore, Walmart’s partnerships with various brands (such as Adobe, ShipBob) and retailers enable it to diversify its product offerings, providing a competitive edge against the more specialized approaches of some competitors. As part of Walmart’s strategy in marketing, Walmart has announced partnerships with social media giants such as TikTok, Snapchat, Firework and more further boosting its online digital footprint. 

The acquisition of Jet.com in 2016 not only expanded Walmart’s digital footprint but it brought innovative talent into the company. It is clear Walmart sees the need for talent as key to its continued efforts to apply human centered design as part of its digital transformation strategy.

By continuously adapting and evolving its strategies, Walmart is clearly implementing digital transformation sustainably, to support its future operating model as Walmart remains a formidable force in the online retail landscape, navigating the challenges presented by its competitors.

In conclusion, Walmart’s business strategy is that of an growing Omnichannel marketplace, a multifaceted approach that combines physical and digital retail, competitive pricing, supply chain excellence, and a commitment to customer satisfaction. Understanding these elements provides insights into the retail giant’s enduring success in a rapid changing and competitive digital economy as it continues to combat emerging new business disruptions.

Q1: How did Walmart become a retail giant?

Walmart’s ascent to retail dominance can be attributed to a combination of strategic pricing, operational efficiency, and a customer-centric approach. 

Q2: What sets Walmart’s supply chain apart?

Walmart’s supply chain is marked by innovation and technological integration, allowing the company to streamline operations and stay ahead in a competitive market.

Q3: How does Walmart balance physical and digital retail?

Walmart seamlessly integrates its brick-and-mortar stores with its online presence, offering customers a comprehensive shopping experience.

Q4: What is Walmart’s philosophy on pricing?

Walmart’s commitment to everyday low prices is a fundamental philosophy that underpins its strategy, ensuring affordability for consumers.

Q5: How has Walmart expanded globally?

Walmart’s global expansion involves adapting its strategy to diverse markets, understanding local dynamics, and leveraging its core strengths.

About the author

Julie Choo is lead author of THE STRATEGY JOURNEY book and the founder of STRATABILITY ACADEMY. She speaks regularly at numerous tech, careers and entrepreneur events globally. Julie continues to consult at large Fortune 500 companies, Global Banks and tech start-ups. As a lover of all things strategic, she is a keen Formula One fan who named her dog, Kimi (after Raikkonnen), and follows football - favourite club changes based on where she calls home.

You might also like

Culture & Careers , Data & AI , Gameplans & Roadmaps , Operating Model , Service Design , Strategy Journey Fundamentals , Transformation

The Impact of Co Creation in Modern Business

Culture & Careers , Data & AI , Gameplans & Roadmaps , Operating Model , Service Design , Transformation

4 steps to create a Winning Game Plan

Service Design

9 Steps to your Winning Customer Journey Strategy

A Detailed Case Study on Largest Retail Giant Walmart

Avinash kumar mahato

Walmart is one of the largest retail companies in the world. It was founded in 1962 by Sam Walton. The headquarter of this company is situated in the United States. The main aim of the company is to provide consistent discounts, loyal customer service, and fast friendly service.

Walmart’s targets to expand its business in large cities as well as spread retail stores throughout the world. The retail stores of Walmart are divided into four divisions Walmart Supercenters , Discount Stores, Neighborhood Markets, and Sam’s Clubs warehouses. More than 100 million customers are visiting these Walmart Stores.

It is very uncomfortable for small merchants and communities in America. Walmart reaches their town and provides low-cost offers and the best customer service. It is a very bad condition for small merchants and businessmen in America. To downtown merchants, Walmart just comes and takes over all the small stores.

The purchasing power, aggressive marketing and provide low prices to the customer by Walmart, tend to pull out the business by the small merchants. Gradually the dream of Walmart company to become the largest retailer in the world is full filing day-by-day. But, they increase their business by the wrong actions and do not respect the culture or language of the communities.

Timeline Events Of Walmart company Business Model Of Walmart How Walmart Generates Revenue? Walmart’s Marketing Strategy Walmart’s - Flipkart Acquisition

Timeline Events Of Walmart company

The Timeline of events for Walmart company since its inception.

• 1960: Sam Walton opened his first discount store in Rogers, Arkansas.
• 1981: Walmart become the largest company in America .
• 1981: After becoming the largest company in America, they opened their stores in a small Louisiana town.
• 1983: Walmart opened its stores in Pawhuska and Oklahoma.
• 1986: Walmart claims that it can restore more than 4000 jobs to American Communities.
• 1989: They drive a campaign about Environmental awareness that Walmart is aware of land, water, and air.
• 1990: There are some activist groups against the expansion of Walmart’s store.
• 31st December 1990: Walmart’s closed its stores in  Louisiana.
• 5th November 1991: Walmart opened up its store in Lowa City.
• 6th October 1998: Walmart’s founder Sam Walton created a family charity named Walton Family Charitable Support Foundation.
• June 1999: Walmart takes over the ASDA Chain (a British supermarket chain), now they have stores and depots across the United States.
• 2001: Walmart becomes the world’s largest retailer, got huge sales of $191 billion.
• July 2003: Walmart opened its stores in Beijing and till now they have 22 stores in China and counting.
• 2006: Walmart closed its stores in Germany.
• July 2007: Walmart is operating more than 2500 retail units in Walmart International and more than 500,000 employers in some countries.
• 2007: By the ending of this year, they got a net $45 billion sales.
• 2008: Walmart’s opened its wholesale facility in India. This is the first step of Walmart's to sell products through its retail outlets in India.
• 2018: Walmart acquired Flipkart for $16 billion and owned 77% stake in India’s largest online retailer brand.

Business Model Of Walmart

There are different business models that are followed by successful companies which vary from time to time. The business model of Walmart is based to eliminate the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs. The main motive of Walmart's business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

The main marketing strategy of the company is based on leading on price, be competitive, and deliver a great experience by the motto of Everyday Lower price.

Walmart has three important segments.

Walmart U.S

Walmart U.S is operated in the U.S. They provide customers with products and services that are not present physically in stores. They provide their services via the website and mobile application . The website of Walmart company has a special feature that provides a third party to sell products. The company operates its business on various platforms like supermarkets, discount stores, neighborhood markets, and e-commerce websites .

Walmart International

Walmart International is also divided into three sections which are retailers, wholesalers, and other small projects. These sections are also divided into various sections such as supermarkets, warehouses, electronics, apparel stores , drug stores, digital retailers, and many more.

It is the online platform of Walmart’s company i.e., “ samsclub.com ”. This club is consists of memberships of the only warehouse retailer operations. This section includes warehouse clubs in the U.S, as well as samsclub.com.

Want to Work in Top Gobal & Indian Startups or Looking For Remote/Web3 Jobs - Join angel.co

Angel.co is the best Job Searching Platform to find a Job in Your Preferred domain like tech, marketing, HR etc.

How Walmart Generates Revenue?

The Revenue Model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.

Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business. The two main sources of revenue are Product revenue and Service revenue .

Walmart's revenue in the fiscal year ending January, 2020 was $524 Billion.

Product Revenue

Walmart has a wide range of products in various categories:-

• In the grocery category, they have products like Daily needs products, dairy products, frozen foods, bakery, baby products, beauty aids, and many more.
• Health and wellness category have products like Pharmacy products and clinical services .
• The entertainment category has products like electronics products, toys, cameras, movies, music, videos, and books.
• Stationary, paints, and hardware, Automotive, sporting goods, crafts, and seasonal merchandise.
• Apparel categories include apparel for men, women, boys, girls, shoes, jewelry, and accessories.
• Home appliances include home furnishing services, home decor, livings, and horticulture.

Service Revenue

Walmart also provide services to generate revenue in various fields:-

• They provide financial services like prepaid cards , money orders, wire transfer, money transfers, bill payments, and so on.
• VUDU movie streaming services: This is a subscription-based OTT platform for buying and renting movies, watching TV shows on demand.
• Clinical Services include primary health care, Physical and Wellness checks, Clinical lab tests.
• Health Insurance services

Walmart’s Marketing Strategy

Walmart's Business Strategy Analysis is one of the most important parts of any business whether it is small or large. It is very important to make an effective marketing plan to survive in the market . Walmart uses the principle of business marketing penetration method which is used to capture the market by offering lower prices and competitive prices to the consumers.

The company follows cost leadership which makes a huge profit for the company. The company provide low prices to the consumer and treated all the customers as king of the market to maintain the relationship between Walmart and the customer.

According to Walmart, there are four factors that drive the customer’s choice of retailer:

• Assortment.

One more reason for the success of Walmart is purchasing products from local manufacturers in a bulk in one go and selling in small quantities. Buying from local manufacturers is the benefit for both. Buying more products from local manufacturers means they are creating more jobs and they reduce the unemployment rate. They should provide good quality products at a lower price to maintain a good relationship with customers and continue to get profits in business.

List of Courses Curated By Top Marketing Professionals in the Industry

These are the courses curated by Top Marketing Professionals in the Industry who have spent 100+ Hours reviewing the Courses available in the market. These courses will help you to get a job or upgrade your skills.

Walmart’s - Flipkart Acquisition

Flipkart is one of the leading Indian e-commerce brands. In 2018, Walmart takes 77% stakes in India’s largest e-commerce company Flipkart and makes the world’s biggest purchase of an e-commerce company.

After this acquisition the future of eCommerce industry in India has become more competitive than ever.

The three main reasons for the acquisition of Flipkart are Flipkart’s leadership in some lucrative sections, its payment platform and the company’s talent pool.

Walmart’s world’s largest company is to continue to expand its business by improving its strategies day-by-day. The main reason for the success of Walmart is the EDLP system i.e., Everyday Low Price. They are working aggressively to maintain profits, market shares, and provide low prices to consumers. There are many business ideas to gain profit from a market. All depends on how you play the cards for a profitable business.

Walmart has made acquisitions of 28 organizations and has 16 sub-organization.

Feel free to reach us and share your understanding and views on the case study of Walmart. We would love to hear from you.

What is the business model of Walmart?

The business model of Walmart is based on eliminating the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs.

What is the motive behind Walmart's Business Strategy?

The main motive of the Walmart business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

What is Walmart's Market Strategy?

How does walmart generate revenue.

The earning model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business.

What are the main sources of revenue for Walmart?

The two main sources of revenue are:

• Product revenue
• Service revenue

Is Walmart owned by China?

The Walmart branch in China is majority Chinese-owned. But predominantly it is owned by Sam Walton's many children.

Why is Walmart so cheap?

They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.  Hence, by selling in high volume they can sell it at a cheap price and still gain profit.

What are the sub-organisations under Walmart?

There are 16 sub-organisations of Walmart. Some of them are:

• Walmart Labs
• Seiyu Group
• Walmart Canada

What are the top acquisitions of Walmart?

Walmart has acquired 28 companies. Some top acquisitions are:

Must have tools for startups - Recommended by StartupTalky

• Convert Visitors into Leads- SeizeLead
• Manage your business smoothly- Google Workspace
• International Money transfer- XE Money Transfer

PB Fintech Receives RBI Approval to Launch its "Account Aggregator" Business

On 21 October 2024, PB Fintech announced that its wholly-owned subsidiary, PB Financial Account Aggregators Private Ltd, had received a "Certificate of Registration" (CoR) from the Reserve Bank of India (RBI) to begin operating as an "Account Aggregator." Subject to the RBI-mandated restrictions outlined in the

Ola Electric Asserts that 99% of Consumer Complaints are Resolved

According to Ola Electric, out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending

For Diwali, Payments Giant PhonePe Introduces a Firecracker Insurance Plan

On October 21, 2024, PhonePe announced a partnership with Bajaj Allianz General Insurance to provide reasonably priced insurance protection against firecracker-related mishaps during Diwali for a certain time. For a payment of INR 9, which includes goods and services tax (GST), the insurance coverage includes a sum insured of INR

BharatPe and the NASSCOM Foundation Collaborate to Assist Maharashtra's Female Entrepreneurs

One of India's top fintech companies, BharatPe Group, has teamed up with the Nasscom Foundation to support female entrepreneurs in Maharashtra regions. 1,500 rural women from six districts—Ahmednagar, Beed, Buldhana, Latur, Sindhudurg, and Kolhapur—have been given the means to formalise and expand their enterprises as

Walmart's Workforce of the Future

Any discussion of the future of retail—or how we work—has to include Walmart. As of 2017, 90 percent of the US population lived within 10 miles of a Walmart store; with 11,766 locations worldwide and $514 billion in annual revenues, the discount store also has the distinction of being the largest private employer in the United States, with 1.5 million workers (2.2 million worldwide).

But that size and dominance doesn’t make Walmart immune to pressures faced by any other retail operation. In the second-year Harvard Business School course Managing the Future of Work , Professor William Kerr explores how technology and demographics are changing the way companies like Walmart, and their workers, operate.

“The pace of change in the retail sector is truly extraordinary,” says Kerr, the D’Arbeloff Professor of Business Administration and co-director of Harvard’s Managing the Future of Work initiative . “That requires a lot of reskilling of employees and hard choices, in an uncertain environment, in terms of how to deploy capital.”

“This digital transformation creates new jobs, but, more important, it changes the nature of jobs, even entry-level ones.”

Kerr captures that dilemma by detailing the scope of Walmart’s operations and current strategies in the case “Walmart’s Workforce of the Future.” Published in April, it offers an overview of the considerable investments the retail giant is making in its e-commerce infrastructure, in its employee training and support, and in technological innovations such as robot workers and in-house incubators.

Walmart fights a revenue drop

The case details how the rise of ecommerce (and the success of Amazon in particular) affected Walmart’s discount stores (which sell general merchandise but limited grocery items), resulting in a decrease in annual revenue at those stores from $142.5 billion in 2009 to 97.7 billion in 2018. During the same time period, revenue at Walmart’s “supercenters” (larger stores that also sell groceries and often include services such as eye care, beauty salons, and photo studios) increased by 16 percent, from $409.9 billion to $476.2 billion. (Walmart closed 2,214 discount stores or converted them into other formats from 1993 to 2018, with 2,576 supercenters opening during that time.)

In addition to increasing Walmart’s supercenter footprint, CEO Doug McMillon’s omnichannel strategy focuses on a seamless approach to the customer experience, with an emphasis on employee training and improved ecommerce and automation technology, both on the floor and in back office roles.

One foundational move to beef up its technology was Walmart’s $3.3 billion acquisition of online retailer Jet.com in 2016, an investment that immediately improved its ecommerce infrastructure. Walmart has also piloted and invested in robots to perform a variety of functions, from unloading trucks to scrubbing floors to scanning shelves and bringing items out of storage for curbside delivery orders. But public statements by senior executives made it clear that Walmart was equally committed to the complex, costly effort required to train its human workers.

“I want to be clear that we don’t believe technology is the answer to everything,” McMillon stated in a 2017 annual shareholder meeting. “The secret to success will always be our people. … It will be our humanity that drives our creativity, powers our competitive spirit, and keeps us out in front.”

Technology changes the nature of work

But at the same meeting, McMillon also acknowledged how technology changes the nature of work itself, a perspective echoed by Walmart Chief Sustainability Officer and Walmart Foundation President Kathleen McLaughlin. “…we’re now a tech company as much as a retail company,” Mc Laughlin said. “This digital transformation creates new jobs, but, more important, it changes the nature of jobs, even entry-level ones.”

Those demands require more of workers—and an equivalent commitment to re-skilling and compensation. In the case, Kerr cites Walmart’s investments in wages and training for employees of $1.2 billion and $1.5 billion in 2015 and 2016—part of a move that boosted starting pay for frontline associates from $9 per hour in 2015 to $10 in 2016 (it hit $11 per hour in early 2018). Yet in 2015, announcement of a wage increase resulted in a share price drop the following day of 10 percent, on news that the increase would cut earnings per share by 6 to 12 percent in 2016. It’s a dynamic that lays bare for MBA students the consequences of senior leadership’s choices, says Kerr.

“It’s easy to be critical and say that Walmart should be doing more, but when students review the company’s actions over the past five years, they have to confront the fact that every time the minimum wage went up, the stock price went down—and meanwhile, competitors have better margins.”

The case also outlines Walmart’s approach to training its workers, including its focus on building long-term, transferable skills through efforts such as Pathways, a program that teaches associates about the retail business model, explains the “why” behind the work they’re asked to do, and helps develop the soft skills that are useful in any field. Workers who completed the program received a raise and had increased job opportunities; however, many complained that it lacked clarity and that it took too long to move through the various modules. While Walmart planned for 500,000 employees to go through Pathways in 2016, the initial rollout was considerably lower; as a result, Walmart needed to revamp some parts of the program to speed up its completion rate. (Its Academies program, focused on training and empowering hourly supervisors to directly manage team members, faced similar challenges.)

In another move to build a more skilled, educated workforce, Walmart introduced a program in 2018 that offered workers the opportunity to enroll in online degree programs for $1 a day in business, technology, and supply chain management at three different universities; in June 2019, the program expanded to six universities and 14 areas of study, including cybersecurity and computer science. Widely hailed in the press for the opportunity it offers workers to graduate from college debt-free, the program has seen 7,500 employee enrollments in its first year.

“There’s so much to unpack in the choices that Walmart is making,” Kerr says, remarking that management has also introduced virtual reality goggles to train employees as well as an app, Spark City, that uses a game-type simulation to teach workers about store processes and customer service. Walmart has even crossed over with the gig economy by partnering with platforms including DoorDash, Postmates, Uber, and Lyft for package and grocery delivery.

‘You’re the CEO of Walmart’

So, is Walmart making the right investments for its future? “We spend a lot of time in conversation in this class,” says Kerr. “I’ll say, ‘You’re the CEO of Walmart. What would you have done differently? In 2030, what will your workforce look like? How much of your sales will be in-store, and how much online?

“An early indication of the uncertainty of the future is that, with a bunch of smart MBAs, we had a wide, wide range of opinions as to what the future looks like. From some putting all their chips on ecommerce to others who see Walmart as having a powerful position, particularly in more rural areas, where it can be the one place you go to get your prescriptions, do your shopping, and pick up your ecommerce packages—so building on that, rather than trying to become Amazon.”

Analysts generally give Walmart strong marks for how its investments in technology and training have set it up to compete.

“The progress that they’ve made and the strength they still possess has been working out for them to a good degree,” says Kerr. But it’s too soon to tell whether they have established themselves in a way that will allow them to truly excel. “That’s where the jury is still out. They are still defining the Walmart of the future.”

About the Author

Julia Hanna is an associate editor of the HBS Alumni Bulletin [Image: artran]

Related Reading:

Are You a Digital Manager? Why Employers Must Stop Requiring College Degrees For Middle-Skill Jobs How to Hire a Millennial

What’s your take on the future of work?

Share your insights below.

• 25 Jun 2024
• Research & Ideas

Rapport: The Hidden Advantage That Women Managers Bring to Teams

• 11 Jun 2024
• In Practice

The Harvard Business School Faculty Summer Reader 2024

How transparency sped innovation in a $13 billion wireless sector.

• 24 Jan 2024

Why Boeing’s Problems with the 737 MAX Began More Than 25 Years Ago

• 27 Jun 2016

These Management Practices, Like Certain Technologies, Boost Company Performance

• Working Conditions
• Supply Chain Management
• Change Management
• Selection and Staffing
• Organizational Change and Adaptation
• Performance Productivity
• United States

Sign up for our weekly newsletter

The Walmart Firm’s Internal Conflicts and Challenges Case Study

Executive summary, introduction, internal conflict, theories of management, organizational culture, recommendations.

This report focuses on the international consumer goods retailer Walmart. The potential business problem faced by Walmart, namely internal conflict, which causes a decrease in employee morale and job satisfaction, is also identified. To solve this challenge, it is proposed to use management theories such as goal-setting, contingency, transformational leadership, and management by exception theory to increase efficiency and effectiveness.

In addition, it is determined that Walmart’s culture is a critical factor in employee engagement through teamwork, customer service, diversity, inclusion, continuous improvement, and training. Strategies for resolving conflict between managers and employees are provided, such as ensuring better training, improving work-life balance, and ensuring fair compensation and bonuses.

It is essential to recognize that a business is an organization that produces goods or services for profit. Walmart is the world’s largest consumer retailer, with more than 11,700 stores in 28 countries (Pandey et al., 2021, p. 120). The corporation includes both hypermarkets and department stores selling food and industrial goods.

The chain’s strategy includes such components as maximum assortment and minimum prices, striving for wholesale prices. Internal business dynamics vary depending on company size, industry, and corporate culture. The company has business issues that are leading to a decline in staff motivation at Walmart, such as a shortage of career opportunities and incentives for better employee performance. Hence, it is important to examine the problem of declining employee morale at Walmart and provide solutions.

One of the potential internal conflicts that can cause a decrease of performance at Walmart is employee complaints about the lack of career opportunities and motivation. This is due to the fact that Walmart is a large organization with more than two million employees worldwide, which means that workers are hired for a specific task, such as sorting goods putting products on the right shelves (Li & Liu, 2018). As a result, employees have limited opportunities for career growth, which often leads to employee frustration and inaction by managers to improve their skills through training.

However, it should be considered that retail is a demanding industry with long working hours, which is why workers often sacrifice their personal lives for work. Accordingly, the team wants to receive certain incentives from managers, such as additional vacations and bonuses (Li & Liu, 2018). Since some managers at Walmart stores do not follow the company’s general policy on motivation, employees feel that the group is constantly working without proper appreciation, which gradually contributes to burnout, resentment, and decreased job satisfaction.

A management theory that can be used in planning for Walmart is the theory of goal setting. This strategy involves establishing specific and challenging goals for employees to enhance their motivation and productivity (Griffin, 2021). Leaders can utilize this strategy by applying employees in the goal-setting process in order to receive feedback. Thus, the theory of goal setting is essential for workers to understand clear objectives and to realize that the team is valued.

Nevertheless, contingency theory should be used to organize work in a company. Therefore, this concept emphasizes that there is no single way to manage an organization and that managers on the ground have to make important decisions (Griffin, 2021). Consequently, leaders at various levels can use this framework to address the unique needs and circumstances of their stores. As a result, it enables them to be flexible and utilize staffing changes to enhance performance and encourage staff.

In addition, the transformational leadership theory can be applied in an organization. This is due to the fact that this theory emphasizes the ability of a leader to inspire and motivate employees to reach their full potential (Griffin, 2021). Therefore, lower-level managers can develop the association’s vision by effectively communicating it to workers and providing support and encouragement. This way, workers will feel valued and have a clear sense of direction.

Controlling

A management theory that can be applied to monitoring is the theory of management by exception. This theory involves focusing on deviations from standard performance and taking corrective action when appropriate (Griffin, 2021). Managers in a company can use this theory by setting clear performance standards and intervening when performance drops below expectations. In this way, Walmart employees will achieve the expected work-life balance. This enables them to fulfill their work responsibilities with enthusiasm and productivity.

It is essential to note that Walmart’s culture can promote employee engagement because the company’s management has developed specific standards. Thus, Walmart has a strong culture of teamwork and cooperation. All staff members work as a team, fostering workers’ sense of belonging. Moreover, Walmart has a culture of customer service and satisfaction (Pandey et al., 2021). Employees are encouraged to prioritize customer needs and provide quality customer service. This helps them feel that workers are significantly impacting the company’s reputation. When workers feel that their work is valued and appreciated, their level of engagement increases.

Meanwhile, Walmart maintains a strong culture of diversity and inclusion. The organization values diversity in all its forms and aims to design a workplace where everyone feels included and respected. As such, the company’s organizational culture meets best practice management standards, despite some stores frequently operating below them (Pandey et al., 2021). In this case, local executives neglect to motivate and train employees, which leads to morale problems. In spite of the overall well-developed culture, this creates significant challenges in the local area.

Significantly, the main problems at Walmart stores stem from negative leadership traits, such as slow recognition of employees, expectations of overtime, and decision-making with limited information. This will decrease employees’ morale and job satisfaction (Loussararian, 2013). To resolve the conflict between management and employees, the following ways can be suggested to the owner.

First, Walmart could offer training programs for managers to help them recognize staff for their hard work and contributions, communicate effectively with employees, and make informed decisions. Alternatively, the problem of lack of career opportunities could be addressed by introducing a clear development plan for staff (Li & Liu, 2018). This may include offering training programs, promoting from within, and creating a culture of learning and development.

Meanwhile, work-life balance can be enhanced by offering additional vacation time and flexible working hours. It is also possible to ensure fair remuneration and bonuses in the form of competitive salaries and benefits (Li & Liu, 2018). Finally, it is crucial to create a culture of respect, recognition, and support for employees. By addressing these issues, Walmart can raise employee morale, job satisfaction, and overall productivity, leading to a more successful and sustainable business.

Hence, Walmart is a large multinational corporation that significantly impacts the global retail industry. One of Walmart’s most significant challenges is internal conflict, which can lead to declining employee morale and job satisfaction. Moreover, Walmart’s culture can contribute to employee engagement by emphasizing teamwork, customer service, diversity and inclusion, and continuous improvement and learning. By providing better training and support to managers and addressing the lack of career opportunities, Walmart can enhance worker morale and career satisfaction leading to a more successful and sustainable business.

Griffin, R. W. (2021). Management. Cengage Learning.

Li, C., & Liu, M. (2018). Overcoming collective action problems facing Chinese workers: Lessons from four protests against Walmart . ILR Review, 71 (5), 1078-1105. Web.

Loussararian, E. (2013). When bosses go wild: Preventing employee morale knockouts . Eddie Loussararian.

Pandey, R., Dillip, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T. J., & Qhi, L. Y. (2021). Factors influencing organization success: A case study of Walmart . International Journal of Tourism and Hospitality in Asia Pacific, 4 (2), 112-123. Web.

• How the Recruitment Process Is Impacted by the Internet
• The Role of Technology in Recruitment
• Flexible Work Schedule and Work-Life Balance
• Work-Life Programmes in Business Strategy
• A Critical Investigation of Work-Life Conflict on Employee Performance & Organizational Productive Capacities
• Aspects of Occupational Safety and Health
• Position of Employee Benefits in Remuneration Structure
• Food and Beverage Employees' Skill Set
• Project Associate Staffing with Recruitment Matrix
• Recruitment and Retention across Cultures
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, March 3). The Walmart Firm's Internal Conflicts and Challenges. https://ivypanda.com/essays/the-walmart-firms-internal-conflicts-and-challenges/

"The Walmart Firm's Internal Conflicts and Challenges." IvyPanda , 3 Mar. 2024, ivypanda.com/essays/the-walmart-firms-internal-conflicts-and-challenges/.

IvyPanda . (2024) 'The Walmart Firm's Internal Conflicts and Challenges'. 3 March.

IvyPanda . 2024. "The Walmart Firm's Internal Conflicts and Challenges." March 3, 2024. https://ivypanda.com/essays/the-walmart-firms-internal-conflicts-and-challenges/.

1. IvyPanda . "The Walmart Firm's Internal Conflicts and Challenges." March 3, 2024. https://ivypanda.com/essays/the-walmart-firms-internal-conflicts-and-challenges/.

Bibliography

IvyPanda . "The Walmart Firm's Internal Conflicts and Challenges." March 3, 2024. https://ivypanda.com/essays/the-walmart-firms-internal-conflicts-and-challenges/.

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

• Basic site functions
• Ensuring secure, safe transactions
• Secure account login
• Remembering account, browser, and regional preferences
• Remembering privacy and security settings
• Analyzing site traffic and usage
• Personalized search, content, and recommendations
• Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Cookies and similar technologies are used to enhance your experience by:

• Remembering general and regional preferences
• Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy .

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy .

• Harvard Business School →
• Faculty & Research →
• October 2013 (Revised January 2017)
• HBS Case Collection

Walmart around the World

• Format: Print
• | Language: English
• | Pages: 11

About The Author

Juan Alcacer

Related work.

• February 2014
• Faculty Research
• January 2022

Walmart Goes Global (A)

Walmart goes global (b).

• Walmart around the World  By: Juan Alcácer
• Walmart around the World  By: Juan Alcácer, Abhishek Agrawal and Harshit Vaish
• Walmart Goes Global (A)  By: Juan Alcácer
• Walmart Goes Global (B)  By: Juan Alcácer