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CASE STUDY
Walmart’s Competitive Advantage
Results demonstrate Walmart's eCommerce dominance. Walmart's eCommerce revenues increased by
79% in 2020 and by 1% in 2021 as a result of the previous year's significant rise. With 13% of their
sales now coming from online channels, Walmart is currently the second-largest online retailer in the
country.
Walmart's "Every Day Low Price" approach of offering high-quality goods at reduced prices has been
a significant competitive edge over the other stores. This is made possible by developing effective and
clever pricing that allowed for affordable prices for all. By placing warehouses close to their stores,
transportation expenses have been reduced even more. Walmart is able to lower the cost of its goods
by using computerized tools and technology.
One of Walmart's biggest competitiveness has resulted from its "saturation strategy," which focuses
on growing their networks, inventing, and spreading to various regions of the world, becoming global,
and entering new markets.
Walmart’s Competitive Advantage CONT’
Economies of scale have also benefited the company. Large-scale operations often result in some remarkable strengths,
which can provide an organization a competitive edge. Economies of scale are the first major advantage that comes from
larger corporations. Walmart is able to purchase in bulk and offer its products for less.
Walmart has acquired a number of e-commerce companies to boost its expansion in this area, notably Jet.com for $3
billion in 2016, Bonobos for $310 million in 2017, Eloquii for $100 million in 2018, and ModCloth for between $50
Walmart takes advantage of customers' need for value to become one of the world's most popular retailers. Even whilst
everyone else is focused on same-day and next-day deliveries, if the product isn't what the buyer wants, nobody will buy it,
Walmart U.S. reported sales volume of 47.8 billion dollars in 2022, a rise of roughly 11% over the previous year.
Walmart's eCommerce revenues increased by 79% in 2020 and by 1% in 2021 as a result of the previous year's
significant rise. With 13% of their sales now coming from online channels, Walmart is currently the second-largest
online retailer in the United States.
Due to a huge demand, Walmart is also focusing on expanding its online presence while ebay and other businesses are
still lagging behind. The Walmart stores Inc. successfully evaluated the complex set of factors required to develop into a
worldwide player using explicit and methodical processes.
Walmart announced that it will sell software it created to let customers order products online and get them in-store.
Walmart and Adobe have joined to make the bundle of cloud-based services available through a subscription.
With their raw green leafy vegetables suppliers, Walmart and Sam's Club are now using blockchain technology, that
enables them to track their merchandise all the route to the farmer.
With 13% of their sales now coming from online channels, Walmart is currently the second-largest online retailer in the
United States. Walmart is catching up to Amazon in digital shopping, although still being far behind.
• Walmart’s eCommerce Business Model
The Walmart e-commerce website also conducts wholesale and retail transactions
Cost Structure
Team
Dan Bartlett.
Executive Vice
President, Cor-
porate Affairs.r
Rachel Brand.
r
Executive Vice
President of
Global Gover-
nance, Chief
Legal Officer
and Corporate
Secretary.
Walmart’s Competitive Analysis
The competitive environment at Wal-Mart is pretty distinctive. Although general merchandise merchants are
WalMart's main rivals, warehouse clubs and supermarket retailers are also a threat.
The considerable size and ongoing growth and transformation of the bargain retail sector is posing a trea tp
Walmart.
Since decades, Walmart's "Every Day Low Price" approach of offering high-quality goods at reduced prices
The two biggest online rivals of Walmart are Amazon and AliBaba.
Walmarts Corporate Culture
In the present, Walmart and its employees are driven by an unwavering dedication to their clients that
is built on the basic notion of "saving people money so they can live better."
This dedication has been present ever since Sam Walton founded it.
There are four primary facets to the organizational culture at Walmart. These factors influence
employee's performance, which determines an organization's ability to provide consumers with
valuable retail and associated services.
Every employee at Walmart is required to perform in a way that upholds the company's four basic
principles, which date back to the company's founding and are upheld everywhere it operates:
"Service to the Customer," "Respect for the Individual," "Strive for Excellence," and "Act with
Integrity."
Walmarts’ eCommerce Financials
Walmart's online sales increased to $35.9 billion in fiscal 2020 from $25.1 billion in fiscal
2019. The firm's total revenue increased from $514.4 billion in 2019 to $524 billion in
2020.
Compared to the prior year's $59.6 billion, Walmart's total e-commerce revenues increased
to $66.3 billion in fiscal 2022.
In fiscal 2022, Walmart US recorded net ecommerce sales of $47.8 billion, up from $43
billion in fiscal 2021.
Walmart International, on the other hand, saw an increase in net ecommerce sales to $18.5
billion in 2022 from $16.6 billion in 2021.
Total Assets
Fiscal year is February-January. All values USD Millions. 2022
Walmart should create new alliances, subscription benefits, advertising options, and grocery delivery services
in addition to creating a strong shipping environment.
Walmart should prioritize enhancing its more than 3,000 U.S. locations' same-day grocery shipments. The
usage of food deliveries has surged due to the pandemic.
Walmart should invest heavily on brand reputation to attract more customers, they should also change their
hiring policies in order to create a good image.
Walmart should consider cutting costs in order to improve profitability.
Walmart should take global expansion seriously in order to have a wider customer base.
References
WSJ Markets
https://www.wsj.com/market-data/quotes/WMT/financials/annual/balance-sheet
He, Z., Ding, Y., & Liu, W. (2021, September). The States Quo of Walmart and
Challenges and Opportunities of Their Online Transformation in China Based on
SWOT Analysis. In 2021 International Conference on Financial Management and
Economic Transition (FMET 2021) (pp. 353-359). Atlantis Press.
Burbach, C. (2021). Walmart Strategic Analysis.
Oubari, A., Badawi, S., Kittaneh, N., & Nobanee, H. Financial Analysis: A
Comparison Study between Amazon and Walmart.