Walmart business strategy is based on ‘everyday low prices’ philosophy of the company.

In other words,
Walmart pursues cost leadership business strategy enabled by the economies of scale derived by the
company in a significant extent. An efficient utilization of online sales channel contributes to the level of
cost-efficiency of retail operations and about 75 percent of walmart.com sales come from non-store
inventory[1].

Constant improvements of assortment, price and access are basis of Walmart business strategy. In
simple terms, Walmart strives to offer the widest choice of products for the cheapest price, along with
giving customers the opportunity of choosing the most convenient channel to facilitate the purchase.

Wall Mart competitive advantage relies on cost leadership. Moreover, the strategic level management
consistently aim to associate Wall Mart competitive advantage with price, access, assortment and
experience. Since his appointment as CEO in February 2014, Doug McMillion introduced important
changes in Walmart business strategy in the following three directions:[2]

1. Increasing focus on customer services. In February 2015, the company announced a USD1
billion investment in U.S. hourly associates to provide higher wages, more training and increased
opportunities to build a career with Walmart.[3]

2. Improving groceries. Due to increasing level of health-consciousness of consumers, Walmart is

attempting to increase its range of organic options and fresh produce. This change is more
evident in the US market and it is being actively integrated into marketing communication
message of the brand.

3. Enhancing the flexibility of the shopping experience. It has been noted that “Wal-Mart is
working to integrate its physical stores with the digital business”[4]. For example, thanks to the
latest changes, customers are able to collect their online orders from stores and they can also
get text reminders from the pharmacy.

Generally, Walmart competitive advantage can be sustained in the global marketplace in long-term
perspective. ‘We Operate for Less’ and ‘We Buy for Less’ programs saving us USD150 million in China[5].
The company can replicate this strategy to other markets in order to gain and sustain its cost
advantage….