case study walmart history

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“We Need People to Lean into the Future”

• Adi Ignatius

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

A conversation with Walmart CEO Doug McMillon

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.

• Adi Ignatius is the editor in chief of Harvard Business Review.

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From humble beginnings. To redefining retail.

Sam Walton was a man with visionary leadership, and our business is a result of that. Since the first Walmart opened in 1962 in Rogers, Arkansas, we've been dedicated to making a difference in the lives of our customers. Today, we're helping communities save money and live better all over the world.

"Give me a W! Give me an A! Give me an L! How about a squiggly? Now give me an M! A! R! T! What's that spell? Walmart! I can't hear you! Walmart! Who's number one? The customer!"

Retail Revolution

Sam Walton's strategy is built on an unshakeable foundation: the lowest prices anytime, anywhere.

On July 2, 1962, Sam Walton opens the first Walmart store in Rogers, Arkansas.

The Walton family owns 24 stores, ringing up $12.7 million in sales.

1962 ribbon cutting for the first Walmart store in Rogers, Arkansas.

Walmart goes national

In the 1970's, a decade of incredible growth, "Mr. Sam" begins to take Walmart national, providing his vision's widespread appeal.

Walmart becomes a publicly traded company. The first stock is sold at $16.50 per share.

The first distribution center and Home Office open in Bentonville, Arkansas.

Walmart distribution center and general office sign.

Decade of firsts

In the 1980s, the first Sam's Club opens, serving small businesses and individuals, and the first Walmart Supercenter opens, combining a supermarket with general merchandise.

Walmart reaches $1 billion in annual sales, faster than any other company at that time.

Walmart has 276 stores and employs 21,000 associates.

The first Sam's Club opens in Midwest City, Oklahoma.

Walmart replaces cash registers with computerized point-of-sale systems, enabling fast and accurate checkout.

The company installs the largest private satellite communication system in the U.S., linking the company's operations through voice, data and video communication.

David Glass is named chief executive officer.

Sam Walton walks through first Sam's Club store.

America's Top Retailer

By 1990, Walmart is the nation's No. 1 retailer. As the Walmart Supercenter redefines convenience and one-stop shopping, Everyday Low Prices goes international.

Through a joint venture with Cifra, a Mexican retail company, Walmart goes global, opening a Sam's Club in Mexico City.

First optical location.

While receiving the Medal of Freedom, Sam Walton articulates the company's mission of saving people money so they can live better, shortly before passing away at age 74.

Rob Walton becomes chairman of the board.

Walmart employs 371,000 associates in 1,928 stores and clubs.

A group of associates cheer as Walmart goes international.

New Millennium

Walmart enters the new millennium dedicated to offering customers a seamless shopping experience, whether they are online, in a store or on a mobile device.

H. Lee Scott, Jr. succeeds David Glass as CEO.

Walmart.com is founded, allowing U.S. customers to shop online.

Walmart employs more than 1.1 million associates in 3,989 stores and clubs worldwide.

For the first time, Walmart tops the Fortune 500 ranking of America's largest companies.

Walmart enters the Japanese market through its investment in Seiyu.

Walmart takes a leading role in disaster relief, contributing $18 million and 2,450 truckloads of supplies to victims of hurricanes Katrina and Rita.

• Create zero waste
• Use only renewable energy
• Sell products that sustain people and the environment

Walmart introduces its $4 generic-drug prescription program.

Walmart.com launches its Site to Store service, enabling customers to make a purchase online and pick up merchandise in stores.

Mike Duke becomes CEO.

Walmart enters Chile with the acquisition of a majority stake in D&S S.A.

Walmart exceeds $400 billion in annual sales.

Walmart facilities organizing packages ordered from Walmart.com.

People-Led and Tech-Empowered

Walmart commits to serving customers in a changing retail environment, leveraging both associates and technology to make it happen.

Bharti Walmart, a joint venture, opens its first store in India.

Walmart commits $2 billion through the end of 2015 to help end hunger in the United States.

Walmart launches a global commitment to sustainable agriculture, aiming to strengthen local farmers and economies, while providing customers access to affordable, high-quality food.

Walmart expands its business into South Africa by acquiring 51% of Massmart Holdings Limited.

With the acquisition of Massmart in South Africa, Walmart surpasses 10,000 retail units around the world.

Walmart celebrates 50 years of helping people save money so they can live better.

Walmart U.S. announces it will hire any honorably discharged veteran within their first year off active duty. Walmart projects hiring over 100,000 veterans in the next five years.

Walmart acquires Bharti Walmart Private Limited, including the Best Price Modern Wholesale cash and carry business in India.

Walmart commits to buying $250 billion in goods manufactured in the United States over the next 10 years.

Walmart opens its first store in the District of Columbia.

Doug McMillon succeeds Mike Duke as CEO.

Greg Foran becomes President and CEO of Walmart U.S.

The company employs 2.3 million associates worldwide and serves more than 200 million customers each week at more than 11,000 stores in 27 countries.

Walmart announces a $2.7 billion investment over two years in its U.S. workforce.

Walmart acquires 100% stake in Yihaodian, an e-commerce business in China, up from the 51% stake since 2012.

Rob Walton retires as chairman of the board of directors for Wal-Mart Stores, Inc. He continues to serve as a director.

Greg Penner succeeds Rob Walton as chairman of Wal-Mart Stores, Inc.

Walmart opens its Culinary & Innovation Center in Bentonville, Arkansas to develop and test new and innovative products.

Walmart Pay, a fast, easy and secure way for customers to make purchases with their smart phones, becomes a popular in-store payment method.

Online retailer Jet.com and Heyneedle, a subsidiary of Jet.com, become part of the Walmart family.

Walmart opens its first training Academy in South Carolina, with 200 total locations planned at stores across the U.S.

More than 1.2 million Walmart and Sam's Club associates get a pay increase as part of the company's two-year, $2.7 billion investment in its people.

With goals focused on sustainability, Walmart makes a commitment to become the most trusted retailer by 2025.

John Furner becomes Sam's Club's new president and CEO.

Walmart launches free two-day shipping on more than 2 million items, no membership required.

Walmart acquires Moosejaw, ModCloth, Bonobos and Parcel. Jet acquires ShoeBuy.com, which is later renamed Shoes.com.

Walmart launches Store No 8, a tech incubator, with a focus to drive commerce forward and transform the future of retail.

Walmart launches Project Gigaton, asking suppliers to help reduce greenhouse gas emissions from its supply chain by 1 gigaton.

The company also sets a new goal to reduce its consumables chemical footprint by 10% by 2022.

The company changes its legal name from Wal-Mart Stores, Inc. to Walmart Inc.

More than 1 million associates benefit from wage rate increases and expanded maternity and parental leave benefits.

Judith McKenna becomes President and CEO of Walmart International.

Walmart acquires Flipkart in India, divestiture of its business in Brazil and proposed merger of Asda and Sainsburys in the U.K.

Walmart acquires Eloquii, Bare Necessities, and Art.com.

John Furner named President and CEO of Walmart U.S.

Walmart launches InHome Delivery and free NextDay delivery from Walmart.com.

Kath McLay named President and CEO of Sam's Club.

Walmart insources its advertising business, now known as Walmart Connect.

International Walmart customers use self-checkout systems.

Beyond traditional retail

Walmart expands the ecosystem that supports customers, enhancing processes that enable them to shop wherever and however they choose.

Walmart and Sam's Club respond to COVID-19, turning parking lots into testing centers and sourcing PPE materials for frontline healthcare workers.

Walmart launches Walmart+ membership program to help customers save even more time and money.

Walmart.org establishes Center for Racial Equity following the murder of George Floyd.

Walmart Argentina is acquired by Grupo de Narváez.

Walmart sells majority stake in Seiyu to KKR and Rakuten.

Walmart and Sam's Club administer tens of millions of COVID-19 vaccines, 80% of which were delivered in medically underserved communities.

Walmart completes the sale of United Kingdom grocery chain Asda.

Walmart invests in drone delivery, fintech and autonomous vehicles.

Walmart launches Walmart GoLocal last-mile delivery service.

Walmart announces plans to pay 100% of college tuition and books for U.S. associates through Live Better U.

Walmart announces inaugural $2 billion green bond offering.

Walmart launches Walmart Data Ventures.

Walmart scales InHome Delivery reaching 30 million U.S. homes.

Walmart's Project Gigaton™ initiative surpasses halfway mark.

Walmart celebrates 60th Anniversary.

A drone delivers a package from a Walmart Neighborhood Market.

Global styles and scripts

How Walmart Became The Retailer Of The People

Table of contents.

In the world of American retail success stories, it’s impossible to ignore the giant that is  Walmart . Just the mention of the name will bring about connotations of scale that are difficult to fathom in our modern context. 

Let's take a look at some of Walmart's astounding numbers

• $524 Billion (USD) revenue in 2020, an increase of $9.6 Billion 
• Over 2.3 Million employees worldwide, 1.6 Million in the US alone
• 4,743 Walmart stores in the US alone
• 5,184 Walmart international segment stores 
• Located in 24 countries
• Global market share of 2.6% in 2021

In this article, we’ll dive deeply into the Walmart story, unpacking the insights that drove them, the circumstances that made them, and pulling as much value as we can from what they’ve been able to accomplish. Whether you’re in retail or not, there are lessons to be learned here about strategic positioning, customer experiences, product development, long-term sustainability, supplier negotiation, and much more. 

Let’s dig in.

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The Origin Story

The global behemoth started in a very humble way in Arkansas, back in 1962. Mercurial founder  Sam Walton  had a dream of what a true customer-focused retail experience could be. He believed that you could offer low prices and a great customer experience in parallel. And he set out to prove it.

That first store got off to a roaring success because it did something different from what everyone else provided. Walton’s dedication to leadership through service meant that the store felt like a family-led operation that genuinely cared for those who came through the doors. At this stage, it wasn’t the product range or scale that kept customers coming through the doors; it was the feeling that you actually mattered. You weren’t just a number. You were a valued client whose business was cherished.

Over the next 5 years, Sam Walton and his family expanded this philosophy to open up a further 23 stores, which generated just over $12m in revenue. With each new store they planted, they strived to understand the local community and their needs – delivering the sort of retail experience that they would appreciate. And it was this focus that allowed them to continue growing without losing their spark. Even as they began to scale, the small-town feel remained, and the Walton DNA was sprinkled across every part of the value chain.

In 1969, the company was officially incorporated as Wal-Mart Stores Inc., and just one year later, they were listed as a public company. The vision was to bottle up the magic and take it to a national scale. In a way that had rarely been seen before, the ambition was unbounded. They really did see a future where Walmart stores littered the whole of the USA.

By the time 1980 rolled around, the company crossed the $1bn sales figure, with contributions from 276 stores across the country. In today’s numbers, that’s huge, but back in 1980, it isn’t easy to appreciate just how powerful this empire was. The company had revolutionized modern retail, and on the back of significant improvements in mass production and global supply chains, Walmart continued to accelerate in terms of influence and market share. They were quickly becoming the go-to brand for anything and everything.

Every brand that tried to compete with them struggled to match their low prices, wide variety, and family-friendly ideals that made customers feel at home in the stores. Even though the Waltons couldn’t be everywhere, the culture they had nurtured continued to permeate each location, making it a shopping experience that couldn’t be beaten.

In the ‘90s, the company continued to expand, breezing through $100bn sales in a year and growing its operations into Mexico and other select international locations, most notably  China . Thanks to the Walmart supercenters, the company strengthened its brand as the one-stop shop for absolutely everything, providing great value and low costs across everything sold.

As of the time of writing, Walmart now operates over 10,000 stores globally, employing over 2.3m people and maintaining the status of one of the most recognizable brands across the world. The ethos of Sam Walton created an empire that champions low-priced goods delivered at scale in a way that delights customers through and through.

Now that we have a sense of some of the history, let’s look at some of the strategic pillars that make Walmart the success it is.

The Walmart Cheer

In 1975, Sam Walton traveled to Korea and Japan to visit some of his suppliers and to see what the mass production facilities looked like that were feeding the rapid growth of his organization. One of the visits was to a Korean tennis ball manufacturer, where he came across the idea of what would become the  Walmart Cheer .

The factory was not that inspiring aesthetically, but Walton was taken aback by how enthusiastic and happy the staff was. It was clear that they had something special about them, even in the rather dingy circumstances that they worked in. And when he saw the reason why he knew he had to bring a similar idea to Walmart.

The employees at this factory would get together at the beginning of every day and perform a cheer together. As silly as this sounds, they would do this choreographed war cry of sorts that was designed to unite them and reinforce the values and ideals that they were aiming for that day. On a once-off, this might seem like just a gimmick, but repeated day after day, and it turned into a mantra for that factory that kept the workers going and helped them to feel like they were a part of something larger than themselves.

Walton loved this idea and adapted it into what is known today as the Walmart Cheer. Every day before the staff opens their doors to the public, they will gather together to perform this ritual. The sales numbers for the day before would be read out, as well as any goals that are being set for that particular day, and then the employees will go back and forth spelling out Walmart in the same enthusiastic way that you might have during your high school war cries.

Walton recognized that while this seemed inconsequential to some, a little ritual like this acted as a moment for the staff to come together and set their intentions for each day. It gave the store managers an opportunity to share some words of inspiration or motivation to help fire up the employees. And it got the employees to get into their bodies a bit and set themselves up to be in a good state for what was to come.

By the time that the doors were opened for that day, there was an energy and vitality in that workforce that was contagious. This would help them serve the customers with as much verve as possible, which was what Walmart was all about.

Now, whether this is still done at every store is anyone’s guess, but it points to an important strategic insight that comes from Walmart. They understand that the energy put forth by their retail staff has a significant impact on the overall buying experience. While we tend to place a lot of focus on product ranges, pricing, distribution, marketing, and all those components the truth still remains that people buy from people. The ritual of the Walmart Cheer was a simple piece of what made those employees feel like they were all on the same team. And through the age-old tool of group song and dance, they could set their intentions and build the energy that they would need to give to their customers.

This shows an attention to detail that most retailers don’t get right. We’ve all been in situations where the apathy shown by retail employees creates a sour experience for us as customers, and it leads to us ignoring that brand as a result. Walmart understood this and sought to create practical ways for employees to come together and deliver that exceptional buying experience that the customers were looking for.

Always Low Prices

One of the more common oversimplifications that you’ll hear in the business strategy canon is that your pricing model must fall into one of two camps- high volumes at low prices or low volumes at high prices. While the reality is much more nuanced than that, the choice remains one that all companies must make if they are to create something sustainable.

Walmart has always been focused on low prices. They will do everything they can to slash their prices as low as possible because that is the value that they aim to provide to their customers. They want to beat the competition by convincing their audience that you won’t find these goods for cheaper than anywhere else. All across their supply chain, they are doing everything they can to keep the costs as low as possible.

You can see that most clearly in their margins. For the vast majority of their existence, they’ve kept their net profit margin in the  1-5% range , which is quite staggering when you think about the size and scale that they’ve managed to achieve. This is certainly doing things the hard way when it comes to building a business. Leaving yourself this little operational wiggle room is something that a lot of strategists might advise you against. But Walmart has made it work incredibly well.

The reason that this is so interesting is that in our modern context, the biggest companies in the world have insanely high margins that business experts across the gamut celebrate. The digital businesses that leverage the internet to deliver their offerings can find their margins being in the range of 60% and upwards in most cases, which is in stark contrast to the Walmart model.

But that’s a feature of brick-and-mortar retail. Your overheads and your rent make up a sizable chunk of your cost, and then you add on top of that the complex supply chain that brings a wide variety of products onto your shelves. Before you know it, your margins are under serious pressure and you require a significant investment in infrastructure to get the economies of scale you need.

This is compounded when you consider the types of goods that Walmart sells. The core of the offering is essentials, which are the bread and butter of daily life. Customers only really care about price and convenience in these verticals, so Walmart set itself up to match those desires. Through innovative supply chain optimizations and radical cost-cutting philosophy, they made themselves known as the discount retailer where you get the best prices.

It’s difficult to understate how valuable this branding is. If you can convince your customers that you’ll always have the lowest prices on the market, there’s no reason for them even to consider your competitors. Instead, they trust your product curation and become loyal customers of Walmart. At this point, you transcend the competition, and all you’re working on is delivering a consistently high quality of service to your existing base. This is the core proposition that the entire empire is built on.

That’s not to say that a low-price strategy is easy to execute, of course. There are some serious  minefields  you must navigate when you are trying to compete solely on price. It’s certainly not well suited for every business. But if you can carve out that space in the mind of the customer, you can build a sustainable following that will continue to bring you the volumes you need to make the business work.

Your business promise manifests itself and drowns out the competition.

Decentralized Logistics

To operate at the scale that Walmart does, you rely on a logistics system that must perform incredibly efficiently and reliably in rain or shine to supply stores with the items they need. In fact, you wouldn’t be out of order to suggest that at this point, Walmart is essentially a logistics company. In much the same way that Amazon relies on its distribution center, Walmart relies on always having its products in stock to fulfill the customer promise that they’ve made. And to do this with thousands of stores across the world is not an easy thing to get right.

The key strategic decision that the company made when it comes to its logistics was to decentralize its distribution centers and focus on getting the best possible location for each one. Instead of focusing on how they could achieve economies of scale in each distribution center, by building massive warehouses that would then distribute goods, they wanted more centers that could service the surrounding stores in a reasonable period of time. The objective that they set was that every Walmart store should be able to receive a delivery within 24 hours from a distribution center. This meant that as long as the distribution centers were well stocked, you could rectify stock shortages in any store within a day – helping to ease the pressure that comes with being known as the shop that has everything.

The placement of these distribution centers thus became very important to get right. You weren’t optimizing for low rent, high traffic, good infrastructure, or any of that. You were doing a geographic calculation to identify which stores needed to be serviced and therefore, where should the center be placed. These centers became the nodes of the network that would enable Walmart to spread its wings across the whole of the USA. They potentially could have saved money by optimizing for different criteria, but the specific choice to have a decentralized system meant that they could always ensure that their inventory levels were well managed and controlled.

Another interesting piece of this strategy was that once they had a new distribution center up and running, they would start by building the furthest store away from that center and then move closer and closer towards it, building stores as they went. This meant that the distribution center was prepared, right from the beginning, to handle its most challenging deliveries. Every subsequent store that was built could leverage that early work, and things got easier and easier as a result.

This prioritization also meant that Walmart could be much more selective as to where their actual retail locations were. Using the distribution center as the centerpiece, they could identify the key customer locations that mattered most and set up shop there, creating the spokes of their wheel. It was small details like this that allowed them to ramp up their retail capacity in ways that other chains just couldn’t match.

These logistical decisions have, of course, become part and parcel of our modern conversation because of the shift towards online shopping. Led by the giant that is Amazon, the world of logistics management has radically advanced since Walmart’s early days. But in their time, they really were one of the first companies who were very thoughtful about how they set up their distribution networks and used those pillars as the foundation on which they would expand their empire.

Bargaining Power

It would be impossible to discuss Walmart’s strategy without talking about the incredible level of bargaining power they enjoy over their suppliers. As one of the first retailers that went on an aggressive land grab strategy, they were determined to expand their offering as widely as possible to every town in America. They hoped to bring their consumer promise of low prices to everywhere you could imagine so that the brand became synonymous with saving.

Their success with this rapid expansion meant that they ate up market share in every region that they entered. And after a while, they became the dominant retailer in the country, controlling a significant portion of the goods market. This early domination gave them the leverage that they needed to negotiate the best possible terms with their suppliers.

When Walmart came knocking, suppliers knew that the order sizes were so big that they had to do anything to win that business. Manufacturers around the world would compete to have their goods on Walmart shelves because the scale was just unfathomable. This competition drove prices down and improved payment terms for Walmart itself. They could sit back and let companies eat into their own margins – helping Walmart to provide even lower prices to customers.

This is one of those advantages that gets locked in early and is very difficult to dislodge. If you look back at Walmart’s competitors over the years, this is one of the reasons why they have struggled to make a dent. Walmart’s bargaining power in these negotiations is second to none because a lot of suppliers would reconfigure their entire operation to manage the Walmart order. It was so big in size that it would subsume your manufacturing capacity and while some were able to expand beyond it, a lot of companies were comfortable just servicing the growing Walmart empire.

An example like this shows just how important a first-mover advantage can be in markets like this. When you’re competing on price and convenience, the way that you build scale is by being everywhere. And even though your margins are low in the beginning, if you can capture the market early, you can then put pressure on your suppliers to improve the financial situation over the long term.

You have to have enough cash to wait it out, of course, but this is the same model that we’ve seen from numerous venture-backed companies from the past two decades who chase customer growth first, knowing that once they have the lion’s share of the market, they will have the opportunity to squeeze all the other stakeholders because of the power that you wield. Uber is one modern example that comes to mind here.

And it’s not only on price that you benefit. The improved payment terms that you can negotiate have a significant influence on your cash flow cycle and therefore your ability to scale. Essentially, Walmart created an opportunity for themselves to borrow money for next to nothing which could then subsidize their long-term plans. It’s one of those lesser celebrated pieces of the business that actually has had an outsized impact on their success. And it shows the virtues of a high-volume, low-priced business.

In-House Drivers and Route Optimization

Another part of the Walmart strategy that has paid off for them is the decision to insource their transport across the board. Currently, the company boasts one of the largest truck fleets in the world, and their drivers are some of the highest-skilled drivers in the industry. They made it a priority from very early on to invest in this because they knew that it was crucial to managing a vast landscape of stores. They could have very easily subcontracted this work out to a courier service directly but decided that bringing it in-house would provide synergies that would be valuable.

They spend a lot of time and resources training and upskilling their drivers so that they can maintain the safest possible distribution network in the business. The drivers clock in over 700 million miles every year but still have one of the best safety records on a global scale. This speaks to the attention to detail and care taken to strengthen this part of their business, where a lot of companies might try to cut corners.

Having the best drivers isn’t everything though, you then have to figure out how to utilize them most effectively. Walmart does this expertly through complex route optimization processes that plan out all the travel that these trucks must go through to meet the demands of the various stores.

The main thing that they focus on is minimizing empty miles. Every time a truck is travelling without goods inside it, that opportunity cost is eating into the bottom line. So, everything that the company can do to optimize how they use their available space is going to pay dividends over the long run.

To this end, they employ sophisticated logistics management software that tracks current inventory levels, store purchases, incoming supplies, and truck positioning – to craft routes and distribution schedules that can deliver as efficiently as possible. This technology undergoes a complex weighting of various criteria including fuel consumption, environmental impact, traffic conditions, and more – ensuring that all the transport resources are used to their full potential. This has been tweaked over time and continues to learn from ongoing data that consistently compounds its value.

None of this optimization would be possible though without  the right data behind it , and that’s another area where Walmart has invested a lot of money into. The technological infrastructure that sits behind these thousands of stores is monumental. It allows the distribution nodes to understand the exact situation in real-time for any store they work with. As conditions change or consumer behavior adjusts, they can take that into account and adapt the transportation planning accordingly. 

It’s difficult to appreciate just how transformational this is until you’ve spent some time working on inventory management solutions. This part of business has changed dramatically in the last few years with the Internet of Things, machine learning, and advanced algorithmic decision-making starting to make its mark in the world of logistics. Walmart has shown itself to be a leader in this regard, which continues to push them forward as a company.

Of course, the shift towards online shopping is going to disrupt the typical way they do things, but the principles of logistics remain the same. As Walmart begins to compete on last-mile delivery to the houses of their individual customers, they are going to rely on many of the same technologies to manage inventory, track deliveries, and optimize routes so that they can sweat their assets as efficiently as possible.

The big competitor here is Amazon, who have built a distribution network unlike anything we have ever seen, but Walmart still holds its own because of the infrastructure it has in place. Some are talking about how we may see Walmart converting some stores into further distribution centers for online orders and if so, they would have some of the best-located nodes that anyone could imagine. We’ll have to wait and see.

Walmart is an American institution and through the years it has become a key staple for millions of families across the country. Through thick and thin, Walmart is relied upon to provide the essentials that customers need to survive and thrive. As such, they’ve transcended a mere grocery store and have taken on a certain social responsibility to continue to supply the American people with what they need.

In times of natural disasters that have devastated American towns, we’ve seen Walmart get on the front lines to help supply the recovery efforts and help to rebuild communities that are getting back onto their feet. But the only way they’ve been able to do that is by having their own  disaster recovery strategies  in place – policies that stand out when you compare them to the rest of the industry.

At great cost, Walmart has built six dedicated disaster recovery centers which are well-stocked at all times and ready to serve if something goes wrong in any of their regions. These centers are specifically designed to be a backup and so they hope that they never have to use them, but over the past few decades they have played a very important role in the Walmart story.

Having this redundancy in place as a business allows them to react much quicker to adverse conditions than might be possible otherwise. At the very moment where stores are incapacitated, they can have their distribution center ready to replenish the supplies that are needed in that community. This means that customers can rely on Walmart to get them the goods that they need even in the very worst of times.

Doing this has significant financial implications of course because those centers are just sitting attracting cost without delivering any tangible ROI for the company. Some might say that it’s a waste of resources. But Walmart sees the power in being the retailer that never runs out of stock and is more than happy to pay those costs. Because the branding that comes with it more than pays for those idle distribution centers. Customers can trust that Walmart will look after them in every circumstance, good or bad, and that continues to entrench their competitive advantage in every market they enter.

We can all learn from this – and it’s certainly very topical right now as we deal with a global pandemic. Having redundancy in your organization to prepare for those rainy days helps you to be much more agile than you would have been. And when you consider the branding tailwinds you receive when you are in a position to help people, it makes all that investment worth it.

This is not a corner that you should cut lightly. Redundancy matters.

Acquisitions and Joint Ventures

Let's look at how Walmart approached its international expansion. We can see a very clear strategic preference for acquiring existing retail chains or partnering with existing brands instead of trying to build their own from scratch. This principle is at the heart of their entries into Mexico, China, India, South Africa, and everywhere else where they have a presence. And it’s worth discussing why they went this route.

Walmart understood that the cultural context of their branding and their product offering is what enabled their success in each local area that they went. Customers trusted the chain with their business because it was delivering exactly what they wanted at the best price possible.

The organization knew that if they were to go into a new territory where they had limited cultural understanding, they risked creating a retail experience that didn’t serve those people in the way that it should. And that was an expensive mistake to make if you were entering a new company for the first time.

Instead, if they could leverage the knowledge and experience of local brands who understood the market, they could fast-track all of those learnings and get up to speed in next to no time – because they were standing on the shoulders of giants. So, that’s what they did. They would go into these new markets and look for acquisition targets that made sense for the growing empire.

They were looking for great locations, high customer foot traffic, and a certain penchant for discount shopping. Not only that, they were also looking for operations that weren’t operating as smoothly as they could be. That’s where the Walmart machine could add value.

When the company found a target like this, they could offer a premium price to acquire those brands because they had the confidence in their own technology, systems, and global supply networks that they could drastically improve the efficiency of those stores and drive prices even further down as a result. Riding on the success of the American stores, they could afford to take their time reconfiguring the internal operations and turning those brands into the sophisticated operations that were in place back home.

This is not to say that every acquisition worked,  far from it . International expansion is notoriously difficult. But the key insight is that they realized that they didn’t need to reinvent the wheel. The existing brands had loyal customers, good locations, and a cultural understanding of what was required to serve that particular area. If Walmart could bring its technology and operational excellence to the table, it could turn the dial up on success and grow internationally in a much more streamlined way.

The lore of internal expansion is littered with stories about high-powered brands walking into new countries and expecting to just build exactly the same business in the new place. Walmart wasn’t that naïve. They knew that they had to be smarter than that. And you should be too.

That brings us to the end of this strategy breakdown for Walmart, one of America’s biggest retail success stories. It’s rare that you see a company carry forward the ethos and values of its founder as it scales to this size, but that’s exactly what Walmart has done. Even though it is now a giant commercial conglomerate, it hasn’t lost that special sauce that the Waltons imbued in the company DNA.

It hasn’t tried to become what it’s not. The company has stayed true to its original brand promise that it will give you the widest range of goods at the best prices, wherever you happen to be. We’ve pulled out some key strategic pieces in this study, and those are certainly important in how they’ve got to where they are, but the purity of the offering is what really stands out.

Behind the simplicity of the brand image, lies a sophisticated logistics network, cutting-edge real-time data analysis, thoughtful HR strategy, planned redundancy, strong supplier negotiation, and a land grab strategy rivaled only by perhaps McDonald’s. These components all come together to make Walmart what it is and the scale they’ve achieved is testament to making this a winning formula.

What lies in the future for the company remains to be seen. They face stiff competition from Amazon and a myriad of other online retailers who are stealing customers from right under their noses. But we wouldn’t want to doubt their ability to adjust just yet. They’ve shown time and time again that they can remain relevant, and it’s hard to see them giving that up now.

It’s a story of diligence, perseverance, and a customer focus that bordered on obsession. And when we look back at some of the greatest retailers the world has ever seen, you can bet that Walmart is going to be very near the top of that list.

Sam Walton, we salute you.

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Walmart's Omnichannel Strategy: Revolution or Miscalculation?

By: Ramon Casadesus-Masanell, Karen Elterman

This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018…

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This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018 strategy, which aimed to integrate Walmart's enormous brick and mortar footprint with its growing ecommerce business, e.g., through merchandise and grocery delivery and order online, pickup in store options. Walmart's strategy also included the acquistion of Jet.com (in 2016) as well as the acquistion of a number of other specialty eretailers (e.g., Shoes.com , Moosejaw, Bare Necessities) and digitally-native vertical brands that developed their own products and sold them directly to consumers, such as ModCloth, Bonobos, and Eloquii. In addition to building its online marketplace, Walmart hoped to leverage its existing assets, such as its massive network of retail stores and thriving grocery business, in the fight against Amazon. The case poses the question: Could Walmart successfully compete against Amazon and other online retailers in areas such as grocery delivery, product selection, shipping costs, and delivery times?

Learning Objectives

To provide students with an understanding of the decisions Walmart made in developing its omnichannel business, including decisions related to its marketplace, online acquisitions, technological development, and distribution strategies.

Aug 28, 2019

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Contemporary Strategy Analysis, 10th Edition by Robert M. Grant

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Case 6 Walmart, Inc. in 2018: The World's Biggest Retailer Faces New Challenges *

In 2018, Walmart was not only the world's biggest retailer, it was also the world's biggest company in terms of revenue—a position it had first attained in 2000 and had held for most of the intervening years.

Since going public in 1972, Walmart's record of growth and profitability was remarkable. Between 1972 and 2009, its average annual sales growth was 22% and its return on equity had not fallen below 20%.

Yet, sustaining Walmart's phenomenal record of growth and profitability was proving to be an ever more daunting challenge. As Walmart continued to expand its range of goods and services—into groceries, fashion clothing, music downloads, online prescription drugs, financial services, and health clinics—it was forced to compete on a broader front. While Walmart could seldom be beaten on price, it faced competitors that were more stylish (T.J.Maxx), more quality‐focused (Whole Foods), more service‐oriented (Lowe's, Best Buy), and more focused in terms of product range. In its traditional area of discount retailing, Target was an increasingly formidable competitor, while in warehouse clubs, its Sam's Clubs ran a poor second to Costco.

However, all these competitive threats were trivial compared to that posed by online retailing—and, specifically that posed by the world's emerging retail colossus: Amazon. During 2017, the turf battle between the two became increasingly acute: while Walmart expanded ...

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Why Walmart is creating a lifestyle ‘super app’

Since the advent of e-commerce, traditional retailers have tried various ways to take advantage of new shopping methods while keeping the in-store experience growing. Walmart, one of the world’s largest retailers, always strives for a customer-first mindset. So the company has been working to deliver a broader omnichannel experience to customers.

We want our app to be more than just a shopping transaction.

I recently talked to Meng Chee, Walmart’s chief product officer, about the company’s attempt to create a “super app” that’s more than just a shopping experience — and how the pandemic accelerated this approach.

How has your app strategy evolved due to COVID-19, with more consumers choosing to shop across digital platforms?

Before the pandemic, we were already changing our app strategy. Historically speaking, before 2019 we had two areas of businesses running separately: e-commerce and in-store. But in 2019, we made the decision to merge, and in 2020, we restructured our product organization to be at the center, with the goal to deliver omnichannel experiences. That’s why, when the pandemic hit, it only accelerated our efforts to bring one app together. This acceleration has also helped us focus on our larger ambition to create a super app, meaning we want our app to be more than just a shopping transaction. Ultimately we want it to be a lifestyle app, because we’re growing our business, and adding health and wellness services, financial services, auto care, etc. All of this comes together and represents a lifestyle package that we can give our customers via a super app.

I love that you’re talking about super apps. Can you give me an example of a nonshopping use for the app?

Absolutely. Many innovations happened in our app during the pandemic. For Walmart in particular, because of the prominence we have in many communities across the country, we created an online vaccine scheduler so customers could schedule their vaccinations at their local store. Quickly thereafter, we heard from customers that they wanted an easier way to manage their paper vaccine card. So we created a digital vaccine card that is accessible in their Walmart Pharmacy account.

Creating this kind of app can be organizationally tricky. Can you talk to me about how you overcame organizational silos?

The customer is at the center of everything we do. We think there are three ways to address how to work through silos within a large organization and create the apps that matter.

You need clear accountability. … You need a framework that an organizational structure agrees to use and use consistently.

First, you need the right organizational structure. In this case, part of that solution meant having a centralized product organization so that we could prioritize and think about solutions holistically and consider what happens in-store, online, and in the app.

Second, you need a framework that really identifies the way you’re working. You need clear accountability. You can’t have every single silo with a vote. You need a framework that an organizational structure agrees to use and use consistently. This way, you make clean, clear decisions that are consistent for the customer, regardless of how they shop with us.

Finally, you need to create a model that enables executional agility. For example, we have a model that we like a lot called “four in a box.” The 4ITB team is composed of accountable leads from product, tech, design, and the business. The idea is that we work together on solving a problem for the customer in a collective, integrated way. This is how we overcome organizational complexity and develop a clear focus on what our app needs to do in a way that drives value for our customers.

How does Walmart foster a seamless experience for its customers across web and app platforms?

We design with the customer journey in mind. We don’t look at app-versus-web experiences. While we have teams that are dedicated to each, we put the customer’s needs first. A customer might start on a web browser at home, because it’s convenient to shop for groceries, but then go to their phone on the go to add a few things before they pick up in-store. There’s so much that goes on, and we need to think about the customer journey holistically to help them make consistent decisions across platforms. The way you achieve that consistency is to thread it all the way across the product life cycle, and, in this case, multiple product life cycles.

What are some innovations you’ve developed to personalize the experience, and how do you see that evolving?

Our core guiding promise to our customers is to help make their lives better. In order to do that, our personalization has to work very well. There’s a lot to compete with in terms of head space as you look at your phone today, which is why personalization is so key. We have to rapidly bring our brand and our value to the forefront of a customer’s attention span.

For example, we know customers enjoy using our app to shop for their weekly groceries for pickup at our store or delivery at home. To make it faster and easier to place pickup or delivery orders, we created a tab in the app called My Items. The My Items tab automatically organizes customers’ preferred items into categories, like dairy and eggs, pantry, beauty, and more — like having a curated store to shop from within Walmart.

We design with the customer journey in mind. We don’t look at app-versus-web experiences.

Does the app have an impact on the in-store experience?

Absolutely. The app and in-store experiences must be connected, because today’s customer shops across all our channels based on their schedules. It’s our responsibility to design an integrated experience that works for their needs, not the other way around.

Our stores are a competitive advantage, and they’ll always be a core shopping channel for our customer. But we also know that we can use technology to simplify the in-store shopping experience.

For example, we heard from our customers that they wanted better navigation to find where products are located in stores and easier ways to checkout. Over the last year, we’ve been rolling out a new design for Supercenters and Neighborhood Markets that includes things like updated exterior signage reflecting the Walmart app icon, updated in-store messaging system and signage to guide customers and associates to products using the app, and more hosted-checkout kiosks as well as contactless payment solutions, like Walmart Pay and Scan and Go.

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Walmart Global Strategy – International Expansion Case Study

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Introduction

Walmart history, walmart organizational structure, walmart integrated global supply chain management, walmart international marketing strategy, diversity management, walmart’s low-cost strategy, total quality management strategies (tqm), weaknesses of walmart global strategy, recommendations.

In current contemporary business environments, companies are able to diversify their businesses to countries other than their country of incorporation; when operating across boundaries, leaders make decisions and develop strategies that are responsive to the needs of international and domestic customers (Kaushik and Cooper, 2000). The retail industry is one of the competitive segments in an economy; companies in the sector operating across the board need effective management style and unique marketing strategies.

Wal-mart is an international retail giant operating in more than 3,200 outlets in Europe, the United States, Asian countries and North American countries. To operate competitively across those countries with different cultures and consumer need, the company has effective global strategies. This paper analyzes Wal-marts global strategy.

Wal-mart stores have been in operation since 1962, with the first branch at Rogers, Ark, in United State of America. In a span of ten years, the company had diversified to major cities in United States and had 11 branches. According to Fortune 500, 2002 to 2010, the company is the leading retail outlet in the world. It specializes in different merchandise from electronic to toys.

The profits made by the company rose from $219.81 billion in 2002 to $405 billion in 2010 despite the world’s economic situation. The number of employees in the same period rose from 1.29 to 2.1 million. The company has over 8,747 retail units situated in 15 countries and operating under 55 different banners. The quality of managerial decisions has led to the company’s success. It adopts strategic management systems in all its operations.

Wal-mart understands that not all countries can be effectively tapped with a similar organizational structure; with this in mind, the company has some unique systems of structure that are relevant to the kind of market that the company is operating. The company’s structure established three main systems, Wal-Mart Stores, Sam’s Club and International Store; the difference of the stores is on the approach they take to sell the company’s products.

Under the structure of Wal-mart Stores, the company is further dividend into Discount Stores, Supercenters and Neighborhood Markets, the above structures offers different shopping atmosphere that assists the company divide the market on income lines; this is the main structure operated in the United States.

Sam’s Clubs are membership clubs where the company targets the well to do in the society; the stores are run on subscriptions and pay some returns to the members, they are common in Puerto Rico. International stores are divided further to retail stores, restaurants, discount stores, Sam’s Club and Supercenters; the main reason for the division is to ensure that the company can sell the products to different countries using the format that can suit the demands of the country.

When in the international scene, a company is affected by cultural believes, the countries living standards, the perception of the people among other factors; to be successful in different countries, there is need to develop the best organizational structure that reflects the needs of the particular market. Wal-mart management has recognized human resources needs and conducts an in-depth market analysis to know the best approach to the particular market (Kotter and Schlesinger, 2008).

One of the main benefits that the company gets from the structure is that it is able to learn a certain market and establish the best approach they can have for the particular market. When an area low-income people, the company ensures that the structure is responsive to the needs of that population in the form of costs and the packaging that they adopt.

With the thousands of products that the company stores; it ensures that every store has the right quantity and quality of products using a computerized supply chain management system (Haag, Cummings, McCubbrey, Pinsonneault and Donovan, 2006). One of such strategic managed areas is supply chain management.

The company have 40 Regional Distribution Centers, which each covers an area of over one million square feet’s, inside the distribution centers, there are five conveyer belts that move over 9,000 merchandise, they operate 24 hours, seven days a weeks (Wal-Mart Corporate Website, 2011). The supply chain management operated by the firm is among the largest in the world.

Efficiency is crucial in ensuring that the company retains its leading position. In a single shop, the company operates eleven sections for the purposes of managing supplies. Section managers with a full team of procurement and supplies operate each section. The division ensures that the same manager manages similar goods because their trend in demand is likely to be the same.

For example, all Christmas merchandise are under one micro management and house hold goods under another. Demand for these departments varies with seasons. Procurement manager in every department is supposed to manage the stocks kept and ensure it satisfies its customer’s expectations. When a certain order need to be made, he liaises with the head of procurement for purchase (Kouvelis, Chambers and Wang, 2006).

The division is a mechanism to ensure that each section is management is efficient. (See the appendixes1 and two for the company’s domestic and international supply chain systems). Head of procurement department have two major departments, the procurement section and traffic/freight. Traffic head ensure that he allocates each department the right number of trucks to transport good from the suppliers or to customers or otherwise

This kind of approach ensures that at any one time the company has the right number of stocks and delivers timely to its customers (Larson and Halldorsson, 2004).

For an efficient supply chain management, the company has developed certain strategic functions, which leads to overall efficiency.

Inventory Management

Wal-mart has a just in time supply inventory management mechanism; this means that it ensures its goods are delivered when they are needed; its aims at ensuring that there are no goods lying in the warehouse; goods are either on shelves displayed for sale or in transit.

To operate such a system, the company has updated information about the market. It knows when a certain good is in high demand and when it is not. With that kind of approach, the company is able to order for goods in the right quality and quantity.

Cross-Docking Logistics

This is a logistic mechanism where a company does maintain limited number of warehouses; this ensures that between loading and unloading of goods, there is minimal storage. This system of supply ensures that Wal-Mart suppliers get their goods timely in their best state. An efficient method ensures that there is fast delivery of materials and supply of goods to the final consumer.

To support this strategy, the company has employed dedicated drivers who have undergone training on customer service and time management courses. The system also saves the company warehousing costs like rent, maintenance and other associated costs. The expectation and conduct of a driver is stated in Wal-mart, The Private Fleet Driver Handbook, it states how robust a driver should be to ensure that he delivers goods at the right time from or to the company.

Procurement and Strategic Alliances

The relations that Wal-mart maintains with its suppliers give it an upper hand. This is where the suppliers are willing to supply the company with goods; Wal-mart respects contracts of supply, for example, it pays its suppliers in time.

To be on the save side, the company contracts at least two suppliers for the same commodity, though this may be of different brands. For example, it stocks Samsung and Sony electronics, which to a certain extent they are, substitutes. In times of high demand, the company procures from both companies.

Green Supply Chain Management

Wal-mart adopts a green supply chain management. This system ensures processes of a company are environmentally friendly. The kind of trucks that the company uses are highly fuel efficient with most of them using modern fuel efficiency mechanisms.

The company services its trucks regularly to ensure that they are fuel-efficient. When procuring for goods, it only contracts those suppliers who respect the environment. If the production method adopted by a supplier pollutes the environment, then the company avoids such a supplier.

Wal-mart has contracted a company that deals with its wastes. The contracted company ensures that those recyclable wastes are recycled appropriately and those that cannot be recycled are disposed in the right way.

Integrated Supply Chain Management

The company has adopted computers in their supply chain management. This is where it uses a real time stock managements system, which has set reorder levels of certain goods. After a sale at the cashier, a code records the sale in the main database.

When any good gets into the company’s stores, it must go through the database section for entering in the system. With such kind of management, Wal-marts procurements managers at section levels and head office are able to manage their stocks effectively

To stand out amidst high competition, Wal-mart has an effective marketing strategy; the strategy is responsive to the needs of certain market thus the system may seem different in different countries. To come up with the specific marketing approach to use, the company undertakes a massive marketing and market research to establish the best persuasion approach they will use in the particular market.

In particular the company adopts 4p marketing Mix approach were it ensures that the 4p’s (Pricing, products, promotion and place) have been addressed accordingly; the prices set for the same products vary with the target market and the place that the company sells (Mentzer, 2001).

As a policy, the marketing department that is at the head office and represented at every outlet is mandated with the role of advising the company on the best way they can improve their products and services. For instance, in some branches, there are personal marketing approaches, while in others there are indirect marketing methods (Möller, 2006).

The main agenda that the department’s aim at meeting is to have satisfied and loyal customers; to develop and retain customer loyalty, the company has implement a CRM (customer relationship management) programs in all it branches (see appendix 3).

Wal-marts management appreciates that it can only offer value and quality services to its customers when it maintains satisfied, quality and quantity human capital. To meet this noble agenda, the human resources department ensures that the needs of employees regardless of their location have been addressed effectively (Renckly and Renckly , 2003).

Since it operates in different countries, the management maintains human capital of different nationality and cultural believes (Triandis, 2006). In every outlet, the management of the outlet is expected to blend the human capital in the optimal manner possible to ensure that the company benefits from advantages of diversity as it mitigates against any negative effects like cultural differences (Smith and Mazin, 2004).

The salary scale of employees is competitive in different markets and the management ensures that it has respected the rule of law in the country of operation. When differences in labor laws prevail, the legal department is always called to interpolate and advise the company on the way forward. A number of motivational measures have been enacted to ensure that employees produce to their optimal level (Swamson, 2009).

When recruiting employees, the management is keen to looks for such traits that can move the stores forward, the attitude, experience and education that the person has are some of the considerations that the company considers when choosing an employee of any rank. After one has been employed, the company takes into it as the role of motivating and creating an enabling environment for self-development and knowing of one’s talents, skills and intellectual property.

The marketing and trading approach adopted by Wal-mart has made the company be able to sell its products at relatively lower prices than the price sold by its competitors; it low cost strategy has earned the company its legendary status. To maintain the prices at a low rate the company has three main approaches, they are firm-level economies, efficient distribution systems, and lower labor costs.

The large number of outlets makes the company be able to enjoy economies of scale in different manners like distribution costs and transport. It is also able to buy products at bulk resulting to a reduced cost per unit. With large sales, the company is able to sell products are lower prices and recover the lost profit from the increased number of sales.

The approach undertaken by the company’s management ensures that there are high rates of creativity, innovations and the big-box format of management. In 1987, the company’s human resources were said to have a 47% higher in productivity, the rate was 41% higher in 1991 than those employees in other similar companies. The price advantage has been used as one customer care strategy that makes the company to of choice by a number of people, the benefit extends to groceries, supermarkets and super-enters; when

A study conducted on grocery retail outlets prices in 2002 shown that at Wal-mart super-stores, the prices of a basket of items cost 17% lower than the cost of similar products in similar chain outlets in the region. The reduced cost of products is a saving to the consumers thus; customers are more likely to buy from the outlets than any other outlet (Swamson, 2009).

To ensure that the operations within outlets in different places are managed effectively, the company has an effective information and technology system. The system is crucial for customer service, internal process management, and communication among branches. Information platforms of the company include intranet, internet, and e-business tools (Walker, Walker and Schmits, 2003).

To make quality decisions, the management has recognized the benefits that can be derived from knowledge management tools like business intelligence and data mining tools. Before making a strategic decision, the company ensures it has, quality information needed (Fred, 2008).

As an overall strategy, Wal-mart undertakes total quality managements in its local and international braches; TQM ensures that the company’s operations are up to the management expected level (Noruzi, 2011).

Despite the above global approaches, that have seen the company succeed, some areas it is experiencing some shortcoming.

The pricing strategy adopted by the company has seen it have china supply most of its products since China is able to offer products at the low costs that the company aims at. When the shelves of the company have been filled with Chinese commodities, then it risks the chances of negative marketing, perception and attitude by other nations especially the Americans on Chinese commodities.

Secondly, despite the world being more inclined to be a capitalist, the company has been blamed for unethical business processes; some of the commodities are so cheap than the cost that other traders has acquired the commodities from the manufacturer, this reduces their competitiveness and they are more likely to be led out of business.

Alternatively, small-scale business cannot prevail in places that the chain has a store since they will have issues competing effectively; the result is locking out a number of small traders from business, unfair competition and job losses (Fred, 2008). The notion that prices should be low has been used to justify the company’s low wage arte; compared to other traders in the same industry, the company has a low wage rate and minimal benefits to its staffs.

It is able to keep the low wages because the employees are not unionized; those grocery attendants in other unionized similar chains earn higher than the pays of Wal-Mart. The retail industry is having an increasing competition; many players that are coming with their strategies and policies to enjoy the benefits that the industry seems to be having.

The main competitor of Walmart in the United Stares in Kmart; the company has a different approach to business and is likely to be a great threat to the company. Wal-marts lack a visionary strategy; the management policies have no clear guidelines and set out strategy to see it succeed in the future. They seem to be riding on the success that the company has attained and lacking ways to create an increased business in the future (Haag, Cummings, McCubbrey, Pinsonneault & Donovan, 2006).

To ensure that the company maintains it leadership skills, it should consider using business-to-business relation approaches; approaches that ensure that there is good interaction of businesses in the same line, thus the company needs to look into its pricing strategy and ensure that it is ethical and acceptable.

When handling employees, the company should combine various motivational theories like Expectation theory and equity theory so that they can come up with the approach to handle the disparities in salaries that seems to prevail; when they do this they will be assured of qualified and highly motivated staffs.

According to industrial relations, a company that has good human resources management like the way Wal-Mart claim should have salaries harmonized and probably higher than that offered by similar companies; the company should look into its policies. To remain competitive amidst an increasing number of retailers, the company should look for ways to differentiate its services and products from other businesses (Fred, 2008).

Wal-mart is an international retail outlet that has succeeded in the global scenes because of its effective global business management systems. Some of the systems that have given the company an upper hand include its global organizational structure, integrated global supply chain management, international marketing strategy, international Human resources management approach or Diversity management, information systems, knowledge management, and Total quality management (TQM) strategies.

Fred, D. ,2008. Strategic Management: Concepts and Cases . New Jersey: Pearson Education.

Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A. and Donovan, R. ,2006. Management Information Systems For the Information Age. Ontario: McGraw Hill.

Kaushik K.D. and Cooper, M., 2000. Industrial Marketing Management. Marketing Journal , 29(1), pp. 65–83.

Kotter, J.P. and Schlesinger, L.A.,2008. Choosing strategies for change . Harvard Business Review, 80(30), pp. 117-124.

Kouvelis, P.,Chambers, C. and Wang, H. ,2006. Supply Chain Management Research and Production and Operations Management. Review, Trends, and Opportunities. In: Production and Operations Management, 15 (3), Pp. 449–469.

Larson, P.D. and Halldorsson, A. ,2004. Logistics versus supply chain management: an international survey. International Journal of Logistics: Research & Application, 7 (1), pp. 17-31.

Mentzer, J. T.et el. ,2001. Defining supply chain management. Journal of Business Logistics, 22 (2), pp. 1–26.

Möller, K. ,2006. Marketing Mix Discussion – Is the Mix Misleading Us or is We Misreading the Mix?. Journal of Marketing Management, 22 (3/4), pp. 439-450.

Noruzi, M. ,2011. A study of Globalization in International Business. Interdisciplinary Journal Of Contemporary Research In Business , 2(9) , pp. 88-90.

Renckly , B. and Renckly , R. ,2003. Human Resources . New York: Barron’s Educational Series.

Smith, S. and Mazin, R. ,2004. The HR answer book: an indispensable guide for managers and human resources professionals . New York: Amacom Div American Mgmt Assn.

Swamson, R. ,2009. Foundations of Human Resource Development: Easy read Large Edition . San Franscico: ReadHowYouWant.

Triandis, H.C., 2006. Cultural Intelligence in Organizations. Group and Organization Management, 31(1),Pp. 20-26.

Walmart Corporate Website., 2011. Wal-mart . Web.

Walker, D., Walker, T. and Schmits, J. ,2003 . Doing business internationally: The guide to cross-cultural success (2nd ed.). Boston: McGraw-Hill.

The following diagrams illustrate the company’s domestic and international supply chain systems.

Chart 1: Domestic customers supply chain management system

(Haag, Cummings, McCubbrey, Pinsonneault & Donovan, 2006).

Chart 2: International supply chain management

Charts 3: Wal-marts marketing structure

(Kaushik and Cooper, 2000).

• Wal-Mart’s Innovative Operations & Strategies
• Wal-Mart Stores: Comprehensive Analysis
• Wal-Mart Vision and Strategy
• Refurbishment of the Royal Exhibition Building in Melbourne
• Strategic Audit: Home Depot Inc.
• Strategic Value of Information Technology
• New Zealand: Internalisation Strategy and Knowledge-Based Economy
• Red Bull Company Marketing Strategy
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2019, June 25). Walmart Global Strategy – International Expansion Case Study. https://ivypanda.com/essays/global-strategy-of-walmart/

"Walmart Global Strategy – International Expansion Case Study." IvyPanda , 25 June 2019, ivypanda.com/essays/global-strategy-of-walmart/.

IvyPanda . (2019) 'Walmart Global Strategy – International Expansion Case Study'. 25 June.

IvyPanda . 2019. "Walmart Global Strategy – International Expansion Case Study." June 25, 2019. https://ivypanda.com/essays/global-strategy-of-walmart/.

1. IvyPanda . "Walmart Global Strategy – International Expansion Case Study." June 25, 2019. https://ivypanda.com/essays/global-strategy-of-walmart/.

Bibliography

IvyPanda . "Walmart Global Strategy – International Expansion Case Study." June 25, 2019. https://ivypanda.com/essays/global-strategy-of-walmart/.

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17 The ‘Walkart’ of India: A Case Study on Walmart-Flipkart Merger

• Published: June 2022
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US retail giant Walmart has signed a definitive agreement to acquire a 77% stake in India’s largest e-commerce marketplace Flipkart with an investment of around $16 billion, making it the largest transaction in the history of the online retail space globally. The deal, which wiped away $10 billion of Walmart’s market capitalization as investors reacted negatively in early morning trade on the New York Stock Exchange, stands out for several exits. The biggest was Sachin Bansal selling his entire 5.96% stake for $1.23 billion and parting ways with Flipkart that he had founded in 2007 along with a friend from IIT, Binny Bansal (not related). Sachin was nowhere around at the Flipkart campus when the Walmart top team led by CEO Doug McMillon addressed employees in a town hall meeting. Another significant exit is that of Soft Bank, the largest investor in Flipkart. In a strange coincidence, the deal, valuing Flipkart at $20.8 billion, was announced to the world by Soft Bank Chief Executive Masayoshi Son in a webinar with investors hours before Walmart did so. He also confirmed that Soft Bank would get about $4 billion from its $2.5-billion investment in Flipkart last August. Flipkart’s valuation at $20.8 billion is a 75% increase over its previous valuation in the range of $11–12 billion last August. Out of the $16-billion investment, Walmart will put in $2 billion in new equity funding, while the rest will be utilized to acquire stakes of existing investors in the Bengaluru-based company. The case study focuses on Effect of regulatory restrictions in Indian Ecommerce Markets for Global MNCs.

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A case study on Walmart’s Healthcare Begins Here programme

How walmart’s retail healthcare program has helped american manage their own health.

Walmart is the Fortune 1 Company with $485 billion in revenue 1 ; $50 billion coming from health related products and services annually. Walmart is a multinational retail corporation based in the US that operates over 5,000 supercenters, stores, neighbourhood markets and clubs nationwide and employs more than 1.4 million US associates.

1 Fortune Dec 2015

Walmart understood the growing demand and lack of knowledge surrounding obesity, chronic disease prevalence and health literacy across the United States. They knew that by 2020, nearly 20% of the US GDP is projected to be spent on healthcare and saw an opportunity to make an impact in healthcare while catering to the 150 million consumers that walked through their stores every week.

Walmart strived to transform how people thought about retail healthcare and unite the wide range of Health & Wellness products and services they already offered (e.g., pharmacy, clinics, DME, immunizations) while expanding into new programs and products based off their consumers needs’ (e.g., health literacy tools, insurance assistance, screenings, etc.).

Walmart engaged PwC to help bring their vision of a one-stop-shop, retail health destination to life. The team facilitated strategy workshops with cross functional internal stakeholders, vendors, and agencies to align on overall brand strategy.

What did we do?

Walmart engaged PwC to help bring their vision of a one-stop-shop, retail health destination to life. The team facilitated strategy workshops with cross functional internal stakeholders, vendors, and agencies to align on overall brand strategy. This included designing a customer experience, and defining content requirements for print/digital educational collateral, while enhancing operational efficiencies through playbooks and supporting execution.

What impact did we make?

In 2014, “Healthcare Begins Here” began as a passport to healthier living event at local Walmart stores throughout the country. Through the programme consumers were provided healthcare information to guide them on their journey to live healthier lives. Consumers also had access to several preventative services such as free blood pressure, blood glucose and vision screenings and access to immunizations and a one-stop-shop health insurance enrolment platform.

The success of “Healthcare Begins Here” proved that Walmart can make a difference in healthcare and has led to other successful initiatives including new supplier collaboration opportunities beyond the pharmacy to reach the biggest winner: the customer.

Download case study Making a difference: Walmart – Healthcare Begins Here

Related content, pwc experience and services to the global healthcare industry.

Jeff Gitlin

US Health Industries Advisory Leader, PwC United States

© 2017 - 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

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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.

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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.

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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:

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A Case Study of Wal-Mart.

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Time is running out to get up to $500 from Walmart as part of a class action settlement

NEW YORK (AP) — Time is running out to submit a claim for a cash payment from Walmart.

The deadline to submit a claim is Wednesday, with a final approval hearing set for June 12.

If you purchased some weighted groceries or bagged fruit at Walmart in recent years, you may be eligible for a cash payment from a class action settlement with the retailer.

The class action lawsuit, first filed in October 2022, alleges that Walmart shoppers across the U.S. and Puerto Rico who purchased certain sold-by-weight meat and seafood as well as select citrus sold in bulk bags paid more than the lowest price advertised in stores.

Walmart has denied any wrongdoing but agreed to pay $45 million to settle the litigation. That means that impacted consumers can now submit claims for cash payments.

“We will continue providing our customers everyday low prices to help them save money on the products they want and need,” a spokesperson for the Bentonville, Arkansas, company stated. “We still deny the allegations; however we believe a settlement is in the best interest of both parties.”

Consumers can learn more about submitting a claim and the products that are covered on the settlement administrator’s website . Cash payments are available for anyone who purchased these certain weighted meat, seafood and bagged citrus products — which includes select oranges, grapefruit and tangerines — at Walmart in the U.S. and Puerto Rico between Oct. 19, 2018, and Jan. 19, 2024.

Payments will range in amount depending on each claim. It’s possible to get some money even if you don’t have a purchase receipt anymore.

Consumers without a proof of purchase can receive between $10 and $25, depending on how many eligible products they attest to buying during the settlement class period. Meanwhile, those with receipts or other documentation could be entitled to get 2% of the total cost for each product they purchased — at up to $500.

Approved claimants will receive their payments electronically through Venmo, Zelle, ACH or a virtual pre-paid MasterCard — but paper checks can also be requested those unable to receive payments electronically.

Copyright 2024 The Associated Press. All rights reserved.

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Dmart Case Study: The Story Of India’s Leading Retail Chain?

Supti Nandi

Updated on: April 8, 2024

If you’ve ever strolled through the bustling neighborhoods of NCR or Bombay, it’s hard to miss the towering presence of D-Mart. Renowned for its wallet-friendly prices and diverse product range, this supermarket chain has become a staple in the lives of many. 

Join us as we go through the Dmart Case Study to understand the factors behind its success!

(A) Dmart: Company Highlights

D-Mart is a top-tier Indian supermarket chain committed to offering quality goods at unbeatable prices. With a loyal customer base and rapid expansion, D-Mart stands tall as one of India’s fastest-growing retail hubs, all thanks to its seamless and well-managed supply chain.

Founded in 2002 by a businessman and value investor, Radhakishan Damani, D-Mart opened its inaugural store in Bombay, marking the beginning of an incredible journey. 

Since then, it has flourished, spreading its wings to over 341 stores across 12 states and 1 union territory (As of December 2023). Remarkably, it took D-Mart nearly eight years to establish its first ten stores, showcasing the dedication behind its growth.

Quite surprising. Isn’t it?

Listed as Avenue Supermarts Limited on both NSE & BSE, D-Mart boasts a current market price of approximately INR 4,000, with a noteworthy P/E ratio of around 110. Since its IPO in 2017, the company’s share price has skyrocketed by a staggering 550% from its initial listing price. Moreover, it has consistently delivered an impressive annualized ROCE of nearly 20%, signifying remarkable returns on the capital invested in D-Mart.

Before delving deeper, let’s have a look at the profile of Dmart-

In the fiscal year 2022-23, D-Mart expanded its footprint by opening 40 new stores, despite facing fierce competition from retail giants like Reliance Retail, Big Basket, and Spencers. As you explore the dynamic landscape of Indian retail, D-Mart’s success story continues to captivate, inspire, and redefine industry standards.

(B) Subsidiary Companies of Dmart

Currently, Dmart has three subsidiary companies-

• AEL (Avenue E-commerce Limited): It emerged as a subsidiary of D-Mart in November 2014. This multi-channel grocery retail platform offers customers the convenience of ordering a diverse range of groceries through its mobile app.
• NSJDP (Nahar Seth & Jogani Developers): This is another subsidiary of D-Mart that came into being in 2014. This company, founded by D-Mart, focuses on land development and construction projects.
• RHRPL (Reflect Healthcare & Retail Private Limited): It is wholly owned by D-Mart, and was established in 2018. Specializing in the healthcare sector, this subsidiary operates within the healthcare business domain, adding yet another dimension to D-Mart’s diversified portfolio.

(C) Strategic Approach of DMart

At DMart, the goal is clear- to be the go-to discount store providing value for money. They cater to the needs of the middle-income group by offering a wide range of products from major brands under one roof. This is why DMart stores are strategically located in busy areas and come in three formats-

(C.1) Target Audience and Discount Strategy

DMart mainly targets middle-income groups and uses discount offers to attract customers and boost sales. Unlike other stores located in malls, DMart stores are in or near neighborhoods, making it convenient for shoppers. 

Let me describe it in short-

The focus is on meeting common consumer needs while providing value for money. Since 90% of stores are owned directly by DMart, there’s no worry about monthly rentals, helping build assets, and offering discounts to customers.

(C.2) Vendor Relationships

Strong vendor relationships are crucial for DMart’s success. By paying vendors promptly within 11 days instead of the usual 12-21 days, DMart maintains good relations and avoids stockouts. 

Bulk purchases and timely payments enable vendors to earn higher margins, aligning with DMart’s strategy of offering quality products at low prices.

(C.3) Organization Structure

DMart offers competitive salaries, flexibility, and empowerment to employees, creating a relaxed yet efficient work culture.

Do you know what makes Dmart’s organizational structure different from its contemporaries?

It even hires tenth-grade dropouts with the right attitude and commitment, investing in their training. Employees are briefed on DMart’s values and policies upfront and then given autonomy to work without constant supervision, fostering a culture of clarity and trust.

(D) Dmart Case Study: Business Model & Supply Chain

In the world of business, having a solid business model is crucial for success. Think of it as the blueprint that guides a company’s growth and prosperity. DMart, often called the Walmart of India, owes much of its success to its robust business model.

Dmart business model

DMart operates on a Business-to-Consumer (B2C) model, selling goods directly from manufacturers to end-users like you and me. It offers a wide range of products, from home care and groceries to apparel and electronics, catering to everyday needs.

Now, let’s delve into the key characteristic features of Dmart-

(D.2) Pricing: An essential USP of Dmart

One interesting thing that always wins the hearts of customers is the “Price of Products” and Dmart has utilized this feature quite well.

Do you know what makes the products of Dmart so special? You either get buy 1 get 1 free or get the products much lower than its MRP. Yes, offering products to customers at prices lower than MRP is the USP (Unique Selling Proposition) of Dmart.

Dmart offers products at EDLC/LP (Everyday low cost & Price) that help to generate more volume in sales.

Seeing the low prices, customers tend to buy multiple other products that eventually help Dmart make profits despite offering cheaper prices!

(D.3) Dmart’s Supply Chain Model

DMart follows a direct sales channel, eliminating intermediaries like distributors and wholesalers. This allows the company to purchase goods in bulk and pass on cost savings to consumers in the form of discounts.

By understanding and leveraging this business model and supply chain effectively, DMart has carved a niche for itself in the Indian retail landscape. Its focus on affordability, quality, and customer-centricity has endeared it to millions of shoppers across the country.

(E) Factors Influencing Dmart’s Profit

Dmart has employed several strategies that have contributed to its grand success in India. Also, Dmart’s founder Mr. Radhakishan Damani’s visionary goals have contributed a lot in Dmart’s success.

Let’s delve into these approaches and understand how those factors have impacted the profitability of the company-

(F) Products Contributing to Dmart’s Revenue

Now, let’s go through the products that play the most important role in driving revenue for Dmart-

As of 2023, Dmart has 49 distribution centers and 10 packaging centers along with over 12,000 employees.

(G) Financials of Dmart

Now, let’s look at the financial report of Dmart. The revenue and financial figures will help you analyze why Dmart is one of the most successful supermarts-

With a market capitalization of Rs.2.71 trillion, Dmart (Avenue Supermarts Limited) is a highly profitable company. 

(H) Dmart Competitive Strategy

How does D-Mart stay ahead in the face of tough competition from giants like Reliance and Amazon? You may ask.

Well, D-Mart stands out from these big players because of its focus on selling practical, everyday products. They pay attention to what customers want and build strong relationships with suppliers to ensure they always have what people need.

D-Mart also does things differently when it comes to where its stores are located. Instead of fancy places with high rents, they choose suburban areas, which helps them save money. You won’t find a D-Mart in a fancy mall or neighborhood.

In simple terms, D-Mart’s success comes from offering good discounts, picking the right locations for their stores, and owning them instead of renting. These smart moves have helped D-Mart become a leader in the Indian retail scene.

(I) Marketing Strategies: Core of Dmart Case Study

In this section, we will delve into the marketing strategies of Dmart-

(J) SWOT Analysis of Dmart Case Study

In this section, we will thoroughly delve into the SWOT (Strengths, Weaknesses, Opportunities, and Threats) of Dmart.

(J.1) Strengths

(j.2) weaknesses, (j.3) opportunities, (j.4) threats, (k) wrap-up:  dmart case study.

In a nutshell, Dmart case study showcases how focusing on offering affordable products, efficient supply chain management, and strategic marketing initiatives have propelled it to become India’s leading retail chain. By understanding the needs of middle-class consumers and providing value for money, Dmart has carved a niche for itself in the highly competitive market. 

Despite facing challenges like limited online presence and competition from online grocery services, Dmart continues to thrive by consistently delivering on its promise of quality products at unbeatable prices. 

With its commitment to innovation and customer satisfaction, Dmart remains poised for further growth and success in the Indian retail landscape!

Related Posts:

Yeah, DMart does have made all the products affordable and accessible to all but recently it hit the headlines as it was charging excess to the customers and was providing wrong bills!

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Study: Gen Z is choosing pets over kids, homes over weddings

(Gray News) – Gen Z is shifting life’s priorities away from marriage and babies.

According to a new study published Thursday, Gen Z is focusing on pets over children and houses over weddings.

The study found that 62% of Gen Zers are in no rush to have children or don’t want them, opting for having pets instead.

Over 40% of Gen Zers don’t see marriage as necessary and are staying single by choice.

However, instead of a wedding, saving for a house is one of the top financial goals for Gen Z, but they’re worried about being able to afford a home.

The study found 53% of Gen Zers in America are unsure if they will ever be able to afford a house in their lifetime. More than 1 in 3 believe the lack of affordable housing is the biggest financial obstacle in their life.

Copyright 2024 Gray Media Group, Inc. All rights reserved.

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Title: study of the behaviour of nesterov accelerated gradient in a non convex setting: the strongly quasar convex case.

Abstract: We study the convergence of Nesterov Accelerated Gradient (NAG) minimization algorithm applied to a class of non convex functions called strongly quasar convex functions, which can exhibit highly non convex behaviour. We show that in the case of strongly quasar convex functions, NAG can achieve an accelerated convergence speed at the cost of a lower curvature assumption. We provide a continuous analysis through high resolution ODEs, in which negative friction may appear. Finally, we investigate connections with a weaker class of non convex functions (smooth Polyak-Łojasiewicz functions) by characterizing the gap between this class and the one of smooth strongly quasar convex functions.

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