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Walmart Company Analysis

Company description

Walmart is a global corporation that dates back to 1962 under the leadership of its founder, Sam Walton, and its headquarters are located in Bentonville, Arkansas (Walton, 2020). The company serves millions of customers daily and globally as it manages grocery stores and supermarkets. Hyper-stores segregate large departmental discount shops while being owned by community markets, and as such, they have established themselves as global leaders in the retail business. The company’s “everyday low prices” slogan reflects its commitment to delivering value. The corporation’s major business segments include Walmart U.S., Walmart International, and Sam’s Club. Offering value-for-money products, Walmart serves consumers of all types, from low-income to high-spending individuals. Compared to purchasing the same or comparable items from midscale and high-end retailers, customers save money by spending less at the company’s locations. Having a wide variety of products, being customer-focused, values-oriented, and thinking technologically make Walmart change retail on a global level.

Strategic Plan and Focus

The strategic plan of Walmart is directed towards ‘saving people money so they can live better,’ which shows a commitment to financial success and giving clients inexpensive products. The firm has a comprehensive strategic concern supporting several factors contributing to its position as one of the leading global retailers. Walmart’s strategic initiatives are based on its objective. Walmart aims to create a better quality of life for individuals and families while increasing accessibility and improving product cost efficiencies within its consumer base. One of Walmart’s strategy objectives is to meet more customers by growing its retail base domestically and internationally. The company continually seeks to grow through alliances, mergers, or opening more shops.

The two main strengths of Walmart are its supply chain management and operational efficiency. This competitive advantage is attributable to the firm’s ability to leverage economies of scale, bargain for favorable terms with suppliers, and reduce logistics. Walmart’s commitment to low cost, underpinned by efficient operations, gives it a competitive advantage. This is a significant advantage because it enhances client loyalty and appeals to clients who are value-seekers and those working on low budgets. Walmart recognizes the critical role that e-commerce can play in modern retail. To enhance customers’ shopping experience and ensure its competitive position in the digital market, the firm has invested heavily in Digital Services, Online Platforms, and Technical Advancement.

Walmart’s global strategy plan enables it to work out and adapt its retail model in numerous foreign markets. Walmart is a renowned company in the retail industry that focuses on sustainable and customer-driven goals. The company tailors its products to suit specific regional requirements and tastes. Walmart seeks to minimize its footprint on the environment, promote ethical sourcing, and improve social responsibility. Operational effectiveness, global expansion, technology innovation, and sustainability in its strategic planning prove that the company is adaptable.

Mission

Walmart’s mission is to help individuals live better lives by enabling them to save money. Walmart aims to improve living standards and save consumers money by following a multi-channel approach focusing on international growth, cost reduction, and customer convenience. The mission summarizes the company’s commitment to selling affordable products for its customers to enhance their living standards by providing easy accessibility to essential items. Walmart wants to become a retail giant that is affordable for its consumers and makes financial security better for lives and families because of cost reduction. Walmart’s purpose statement is put into practice within the corporation. Strong financial management allowed the company to reach its current global leading position in a sector that emerged from the development of its retail operation. Walmart’s vision and mission statements provide a glimpse into the mindset associated with this company and serve its purpose of acting as a guide for strategic planning. This implies that the success or failure of a company depends on its capacity and effectiveness to implement its vision and mission toward retail operations.

Goals

Walmart’s objectives include expanding the retail market globally and within its borders to reach more consumers. The corporation seeks to boost growth through strategic activities such as opening new shops, merging and acquiring other companies, or entering into partnerships. Walmart’s key strengths include efficient control of supply chains and economies of scale, which are used to increase operational efficiency continuously. The company wants to attract different types of customers by maintaining production and sales of budget-priced products ranging from pocket-value items to moderate options for the price-conscious. Walmart’s goals relate to continued growth, operational efficiency, and customer value to different groups of people (Phillips & Rozworski, 2019).

Core Competency

Supply chain management and operational effectiveness are Walmart’s critical competencies. This business is good at the power of economic scales, maximizing logistics, and negotiating favorable deals with suppliers (Jawad, 2017). From this perspective, the literature analysis of Walmart’s supply chain is excellent in integration, distribution, and operations. One of Walmart’s significant strengths over its competitors is its consistently low prices. This becomes possible due to the streamlined and efficient operational model that allows for managing a sizeable disparate inventory, which may be part of its position as one of the most prominent retailers on earth. Logistics management is the competence that supports Walmart’s mission to help people save and live better.

Sustainable Competitive Advantage

Walmart’s commitment to providing everyday low prices with supply chain knowledge and operational efficiency is its enduring competitive advantage. The organization achieves cost savings through effective logistics management, supplier negotiations, and utilization of economies of scale to draw a large customer base. With its global reach and high flexibility across several areas, Walmart has immense competitive power. Additionally, changes in customer sentiment regarding corporate responsibility, ethical sourcing, and environmental activities are supported by the company’s emphasis on these aspects. Walmart has remained competitive because it focuses on global outreach, moral business ethics, and efficiency.

Conclusion

Walmart’s strategic plan aims to offer low-cost items and improved quality of life for its diverse customer base. The company’s mission is to save people money, which is its core value. Its aims are domestic and international development, improvement in operational performance, and fostering growth. Its supply chain know-how and functional competence enable it to provide low costs daily. The long-term competitive advantage for Walmart begins with operational efficiency. This firm will establish a competitive advantage by changing customer attitudes toward their company. By combining its purpose, goals, core competencies, and sustained competitive advantage into a strategic plan, Walmart will be incorporated as an international leader in retail.

References

Jawad, S. (2017). A literature analysis of Walmart’s supply chain excellence in terms of integration, distribution, and operations.

Phillips, L., & Rozworski, M. (2019). The People’s republic of Walmart: How the world’s biggest corporations are laying the foundation for socialism. Verso Books.

Walton, S. (2020). History of Walmart. Made in America. Our format.

 

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