Case Study: Walmart, Inc.

Walmart, Inc. is no doubt among the world’s most powerful retailer having revenue of 500

billion dollars in the year 2018. It has more than 11,000 stores operating in 28

countries[ CITATION Gat19 \l 1033 ]. The competitors of Walmart are Amazon, Target, Costco,

Home Depot etc. Comparing to its competitors Walmart displays increase in the revenue in the

second quarter of 2020 by 5.65% yearly. This revenue growth is less compared to its

competitors’ average growth revenue i.e., 13.87%. The net margin is reported as 4.67% which

indicates low profitability as compared to its competitors[ CITATION Csi20 \l 1033 ]. Looking at

Walmart’s situation, it can be said that competition is high and there is a lot of pressure on

Walmart from online retailers like Amazon and other stores like Target and Costco. Keeping this

in view, Walmart should be looking for ways to battle for the online customers but Walmart is

focusing on opening more physical stores than closing. The stakeholders and shareholders are

immensely impacted by the performance of the company. Walmart has only partly satisfied the

interest of its suppliers and employees because they offer low wages. The presence of Walmart’s

large buildings has also been questioned and criticized by local residents because it can

overshadow small businesses. Due to this, some communities do not welcome Walmart in their

locality[ CITATION Wal07 \l 1033 ].

To combat against the sources impacting the performance of the company, Walmart should

increase the wages of its employees to build trust and stimulate commitment in its employees.

Walmart should also focus on gaining online market because online retailers like Amazon is

giving tough time. Instead of opening new stores every year, Walmart should close some of the

stores which are not generating high revenues. To remain in the competition, Walmart should

also consider closing its old brands which are not successful running. To enjoy trustworthy
relationship with its suppliers, Walmart should settle in the middle instead of bargaining for

extremely low price[CITATION Mey07 \l 1033 ].

References
CsiMarket. (2020). WMT Sales vs. its Competitors Q2 2020. Retrieved from Csimarket:
https://csimarket.com/stocks/compet_glance.php?code=WMT

Gattorna, J., & Ellis, D. (2019). Transforming Supply Chains: Realign Your Business to Better Serve
Customers in a Disruptive World. UK: Pearson.

Meyer, P. (2017). Walmart’s Stakeholders: Analysis & Recommendations. Retrieved from Panmore.com:
http://panmore.com/walmart-stakeholders-analysis-recommendations

Wal-Mart In The Global Retail Market: Its Growth And Challenges. (2007). Journal of Business Case
Studies, 3(2).