HOW WALMART MODEL WINS

WITH
"EVERYDAY LOW PRICES" ?
GROUP NO- 07
Sowmya S 18083
Abhilash R 18089
Abhirami J 18090
Bille Sai Dinesh 18096
Dhaarini J M 18099
ABOUT THE COMPANY
• Walmart Inc. is an American multinational retail
corporation
• founded by Sam Walton in 1962 and incorporated
on October 31, 1969
• operates a chain of hypermarkets, discount
department stores, and grocery stores,
• headquartered in Bentonville, Arkansas
• CEO: Doug McMillon
• Walmart operates over 11,695 retail units
under scores of banners in an increasing
number of countries and has e-commerce
websites in several more.
• The company is 2% of the United States
economy, all by itself
• Walmart is the world's largest company by
revenue
• For the fiscal year ended January 31,
2019, Walmart's total revenue was
$514.4 billion
• Walmart employs 2.2 million associates
around the world, they earn between
$50,000 and $170,000 a year
 High
volume
sales

Walmart Minimizing
Efficient
overhead and
supply chain Business operational
management Model cost

Leveraging
bargaining
power
on suppliers
High volume sales

• Huge market share

• Multiple store
format
• Omnipresence
• Wide customer base
Efficient supply chain
management

• Real time product

information
• Vendor managed
inventory
• Private fleet of trucks
• Backward expansion
strategy
• Cross-docking
MINIMIZING OVERHEAD AND OPERATIONAL COST

• Economies of scale
• LIFO
• Lower overhead cost
• Low benefit healthcare
plans
• Low wages and over
working hours
LEVERAGING BARGAINING POWER ON
SUPPLIERS

• Supplier dependency on Walmart

• Walmart effect
 FINANCIAL ASPECTS
• Operating leverage: 0.90:1, 0.89:1,
0.90:1
• Debt Equity Ratio: 0.14:1 (Low geared
Firm)
Risks
Walmart is exposed to certain market
risks,
• Interest rates
• Currency exchange rates
• The fair value of our equity investment