Introduction

A Case study of Walmart

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Table of Contents

Introduction. 2

Discussion. 2

Conclusion. 6

References. 7

Introduction

Walmart is one of the most popular retail companies all over the world. This company produces a huge collection of retail products and operates its business structure with the help of departmental stores all over the world. This company was founded by Sam Walton. This is a multinational American company that develops its business structure through providing consistent discounts on products, loyal customer services, and fast friendly services. This company expands its business through applying strategy in its business plan. This company focuses on developing its business structure in large cities as well as retail stores worldwide.

Discussion

Vision and mission statement of Walmart

This company has a unique mission and vision which indicate its significant position in the market. The mission of Walmart’s can be summarised as ‘helping people worldwide, save lives better and saving money. In other words, the vision of Walmart is to ‘make everyday better for better families.

Growth structure of Walmart

This company first opened its stores in Rogers, Arkansas in 1960. Year by year this company develops their business in a systematic way and through British supermarket chains, this company enhances their business by creating more departmental stores all over the world. Now this time, even Walmart also sells their products through applying online services which creates a significant step for the company’s growth. This company now has a huge store in each of the larger cities in the world and more than 500000 employees work in this company. Their unique business strategy and pattern help this company to become stronger.

Walmart generates revenue

The revenue model of this company deals with the principle of buying and in this system, they provide a huge discount to the customers. By applying this strategy in business, this company is able to increase its sales volumes and generate more revenue which indicates its future growth (Muda, Indra & Dharsuky, 2021). The most important sources of revenue are such as product revenue and service revenue.

Product revenue: This company introduces a huge collection of groceries such baby food, beauty products, frozen foods, dairy products and many more. Also includes electronics products, stationery and hardware products, home appliances, and many more. This company sells their products in a minimum range and availing huge discounts which attract customers and increase their sales structure.

Service revenue: This company also provides financial services, clinical services, and health insurance services. Those all services help this company to connect more with the customers and also help them to generate their revenue through those products.

The business model of Walmart

There are some different business models which are followed by all successful companies. This business model also changes from time to time (Alsharari, 2021). This company’s business model expresses the structure of its operations, integrity items, and many more that refer to the omnichannel model. Walmart companies develop their business pattern and techniques through applying a unique business model. The business model of Walmart is based on eliminating the middleman from distribution channels. Through this business model, this company got more revenue and the advantage of using this model in business structure is after removing the middleman is to provide benefits to the customers (Morkunaset al., 2019). This business model also helps this company to provide the lowest cost products all over the world.

Figure 1: Business model of walmart

Source: (Alsharari, 2021)

Walmart marketing strategy

Walmart created a huge market response all over the world by applying more innovative strategies in their business structure (Chang & Hu, 2020). This marketing strategy is one of the important business strategies which indicate their business growth. Their effective business plan penetrates their business process and helps to capture more markets offering lower-priced products to the customers (Jindal et al., 2021). This company uses a 4ps marketing mix in their marketing plan which helps this company to develop more. The four principles of this marketing plan are price, product, promotion, and place.

Price- In this marketing strategy, this company always focuses on determining its profit structure. For this, this company generates the lowest priced products which help this company to increase their sales volume and also suggests they study the demand of the customers. Their customer-friendly prices products indicate to maximize their sales volume and also expand their productivity system. Their excellent procurement strategies help this company to bargain with the most affordable players in chain supply which helps to produce low price products.

Product- Walmart company sells a variety of products in their stores. Their products are unique which brings an excellent response to the company’s reputation. They offer a huge collection of groceries, hardware, furniture, appliances, health goods, wellness’s, entertainment products, and many more. A customer visiting that kind of store, they avail all those required items on the same roof and it helps this company to increase their brand value. Also, this company always focuses on maintaining a strong relationship with its suppliers.

Place- Location is a very important part of a business running and it is a vital part of a business undertaking. A business successfully runs when its stores are geographically accessible and placement is perfect. Walmart always focuses on all those facilities which create an effective marketing mix for their growth. This company creates their stores in focus to those components whose stores are mainly situated in main large cities. They always focus on a well-planned network that is easy to access customers and that makes their accessibility better. Their stores are perfectly located strategies which help this company to develop their business structure hugely.

Promotion- Promotion strategy indicates customer attraction for the product sale. This company applies those strategies to increase its sale volume. This company runs frequent promotions and they avail their discount across all seasons. Their product promotion mainly is electronics goods, and e-commerce platforms. This company offers warranties in their products and also applies placement policies which are major strategies for the company to expand and grow too.

Conclusion

After analysing this assessment, it could be concluded that Walmart is developing its business through applying business models and marketing strategies. Those help this company to become stronger and enrich their internal and external factors. Those all parts help this company to develop its business structure and expand its position.

References

Alsharari, N. M. (2021). Management Accounting Practices and E-Business Model in the US Walmart Corporation. Accounting and Finance Innovations, 3. DOI: 10.5772/intechopen.100630

Chang, Y., & Hu, J. (2020). Analysis on the mode of multinational retail enterprises entering Chinese market—Take Walmart, Carrefour and Metro as examples. Modern Economy, 11(01), 17. Retrieved from: https://www.scirp.org/html/3-7202319_97720.htm

Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?. Journal of business research, 122, 270-280. DOI: https://dx.doi.org/10.1016%2Fj.jbusres.2020.08.053

Morkunas, V. J., Paschen, J., & Boon, E. (2019). How blockchain technologies impact your business model. Business Horizons, 62(3), 295-306. DOI: http://m.growingscience.com/uscm/Vol9/uscm_2020_57.pdf

Muda, I., Indra, N., & Dharsuky, A. (2021). The community Walmart uncertainty model: A review of ownership and capital structure aspects. Uncertain Supply Chain Management, 9(1), 49-56. DOI: https://doi.org/10.1016/j.bushor.2019.01.009