• woohoo
  • June 19th, 2024

A Close Picture of the Walmart Case Study

We all know that Walmart is one of the leading retail firms all over the globe. The company is headquartered in the United States. The primary objective of this firm is to offer constant deals, reliable consumer service, and quick cordial service. 

The target of Walmart is to extend its business in larger cities and open trail shops all over the globe. There are four categories of retail stores in Walmart: Discount Stores, Supercenters, Sam’s Clubs warehouses, and Neighborhood Markets. Over 100 million consumers are paying visits to these stores of Walmart. 

The small traders and communities in America suffer a lot. Walmart gives low-priced deals and decent customer service. So, people in every town prefer Walmart. Walmart has in this way taken over every small shop. 

The company is becoming successful with the help of building power, assertive marketing, and low-price offers. The company is gradually becoming the biggest retailer all across the globe. But Walmart is improving its business by taking evil steps and they do not think about the culture or dialect of the communities. 

Timeline Incidents Of Walmart Company

The timeline incidents of Walmart from the beginning: 

  • In 1960, Sam Walton founded his first discount shop in Rogers, Arkansas.
  • In 1981, Walmart turned out to be the biggest company in America.
  • In 1981, as soon as it became the biggest company in America, it started to open stores in a small Louisiana town.
  • In 1983, the company launched its stores in Pawhuska and Oklahoma.
  • In 1986, the company said that it may revive over 4000 jobs in American societies.
  • In 1989, the company made a campaign about environmental cognition. They claimed that they are conscious of land, water, and air. 
  • In 1990, some activist parties went against the growth of the Walmart store. 
  • On 31st December 1991, the company shut down its shops in Louisiana. 
  • On 5th November 1991, the company introduced its shop in Lowa City.
  • On 6th October 1998, the founder of Walmart, Sam Walton developed a family charity and termed it Walton Family Charitable Support Foundation.
  • In June 1999, the company took over the ASDA Chain (a British supermarket chain), currently they have shops and stations all over the United States.
  • In 2001, the company turned out to be the largest retailer in the world and received a huge amount of sales of nearly $191 billion. 
  • In July 2003, the company introduced its shops in Beijing and now they have 22 stores in China. 
  • In 2006 the company shut down its stores in Germany. 
  • In July 2007 the company handled over 2500 retail units in Walmart International and over 500,000 workers in several nations. 
  • By the end of 2007, the company received nearly $45 billion in sales. 
  • In 2008, the company launched its wholesale facility in India. Walmart first took this step to sell derivatives through retail stores in India. 
  • In 2018, the company gained Flipkart for $16 billion and possessed a 77% share in the largest online retailer company in India. 

Walmart’s Business Model

Successful firms follow various business policies. Walmart’s business policy relied on eradicating the middleman from the allocation mediums. By eliminating the middleman the company will give the customer benefit. The customer will be able to get products at cheaper prices. The primary aim of the business model of Walmart is to penetrate every section of the market and conquer the market by offering products at a reasonable price. The primary marketing policy of Walmart is its price. It has kept its prices as low as possible. 

There are three crucial parts of Walmart. They are as follows: 

Walmart U.S

The operation of Walmart U.S. runs in the U.S. The customers get products and services from this part that are not available in physical stores. They offer services through websites and mobile apps. There is a special feature on the website that allows a third party to sell products. The operations of the business are conducted in different platforms like discount stores, supermarkets, e-commerce websites, and neighborhood markets. 

Walmart International

This segment is classified into three parts: retailers, wholesalers, and other small projects. These parts are also split up into different segments: warehouses, supermarkets, electronics, drug stores, apparel stores, digital retailers, and so on. 

Sam’s Club

This online platform, samsclub.com contains memberships of the only warehouse vendor operations. This part contains warehouse clubs in the U.S. along with samsclub.com.

How does Walmart Earn?

The earning strategy of Walmart relies on the precept of purchasing in bulk at a time. In this model, the company gets an incredible amount of discounts from the manufacturers. They sold in small amounts at cheap rates. They increased their sales by decreasing the rate and in this way, they earned a lot. 

Walmart eliminated the middleman and sold its product directly to consumers and services to businesses to increase its revenue. Their main earning sources are product revenue and service revenue. 

In the fiscal year ending January 2020, Walmart earned $524 Billion. 

Product Revenue

There are varieties of products available in Walmart in different categories. They are as follows: 

  • The products like dairy items, regular needs items, bakery, frozen foods, beauty items, baby products, and so on are included in the grocery category. 
  • There are pharmacy products and clinical services included in the health and wellness category. 
  • There are toys, electronics products, movies, cameras, music, videos, and books in the entertainment category. 
  • There is clothing for women, men, girls, and boys, shoes, accessories, and jewelry in the apparel category. 
  • The company also sells prints, hardware, stationary, sporting materials, automotive, seasonal products, and crafts.
  • There are home furnishing services, livings, home decor, and horticulture in the home appliances category. 

Service Revenue

The company offers various services to improve its revenue including: 

  • The company offers financial services for example money orders, prepaid cards, money transfers, wire transfers, bill payments, and many more. 
  • The company offers clinical services like primary health care, clinical lab tests, and health and wellness checks. 
  • The company provides VUDU movie streaming services which is a subscription-oriented OTT platform where you may buy and rent films, and watch TV programs on demand. 
  • The company also provides health insurance services. 

Marketing Policy of Walmart 

Every business should create a proper marketing plan to stay on the market. Walmart with the help of its unique marketing strategy tries to grab the market. It applies a cheap pricing strategy to grab the attention of the customers. 

With the help of cost leadership, the revenue of the company incredibly increases. The customer gets products at reasonable prices from Walmart and they prioritize each customer to keep up a good relationship between Walmart and the consumer. 

Walmart thinks that for driving the customer’s selection of retailers you need to consider four factors: 

  • Access
  • Price
  • Assortment
  • Experience

The reason why Walmart has become successful is that they buy products in bulk at a time from regional manufacturers and sell them in small amounts. In this case, both Walmart and the local manufacturers are benefited. When they purchase more products from regional manufacturers it implies that they are developing more jobs and they are decreasing the rate of unemployment. They just have to maintain the quality of the products to keep up a good bonding with consumers and carry on getting revenue from the business. 

Flipkart Acquisition of Walmart 

We all know that Flipkart is a very popular e-commerce company in India. Walmart grabs 77% shares in the biggest e-commerce platform in India, Flipkart, and creates the largest acquisition of an e-commerce platform. 

The future of the e-commerce industry became too competitive after the investment. 

The company invested in Flipkart due to its alluring segments, payment options, and pool of talent. 

The company changes its policies regularly for the development of the business. Walmart becomes successful due to Everyday Low Price or EDLP. They are striving their best to generate revenue, market states, and offer reasonable prices to customers. 

Walmart has invested in 28 platforms and there are 16 sub-organisations. 

Conclusion

The crown of the biggest business for a long time goes to Walmart. The marketing strategy of the company is too simple. We hope that in future the company will be more successful. If you need any help you may contact My Assignment Writing Help

FREQUENTLY ASKED QUESTIONS

  1. What are the top investments of Walmart?

Walmart has achieved 28 firms. A few top investments are as follows: 

  • Flipkart
  • Thunder
  • Art.com
  • Botmock
  • MeMD
  • Polymorph
  • Aspectiva
  1. Why is Walmart so inexpensive?

The company sells in little amounts at reasonable prices. The company has kept high sales volume by cutting down the rate. In this way, the company earns a lot. That is why by selling in high volume they may sell it at a reasonable rate and still, they have profit. 

  1. What is the business model of Walmart?

The business model of Walmart relies on eradicating the middleman from the allocation networks. The benefit of eliminating the middleman is to offer advantages to the customers by delivering products at lower rates. 

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