Walmart's Organisational Strategies and Success

This assignment analyzes Walmart's organizational strategies, covering areas like in-store operations, purchasing, warehousing, distribution, and competitive tactics. It explores how these strategies contribute to Walmart's profitability and market dominance, emphasizing customer satisfaction as a key factor in the company's success.

Influencing Organisational
Strategy

Table of Contents
INTRODUCTION ..............................................................................................................................3
TASK 1: Improved performance of the Walmart: - ............................................................................3
Task 2: Strength and Abilities of Walmart..........................................................................................4
Task 3 : Sustainable Advantages of Walmart ....................................................................................6
TASK 4 : Walmart in preventing duplication and their strategioes against competitive threats.........8
Conclusion ........................................................................................................................................10
REFERENCES .................................................................................................................................11

INTRODUCTION
Each and every organisation or business needs to focus on organisation strategy to maintain
and organise the various business operations and activities. Organisation strategies helps a
company or organisation to achieve its objectives and goals. The report is in context to US based
multinational company, Walmart. This study will analyse and determine the various competitive
strategies used by the company in order to achieve high performance. The various functions as well
as resources and abilities required for performing those functions will also be described in this
report. Furthermore, The challenges faced by the Walmart within a marketplace will be determined
in the study along with the strategies for overcoming those challenges and threats. The various
strategies to gain competitive advantages will also be analysed in the following report.
TASK 1: Improved performance of the Walmart: -
It is the largest organisation in the market which is an American multinational retail
corporation that operates a chain of hypermarket, discount department stores, and grocery stores.
They are providing the effective services to the customers with some effective strategies and
planning. With the help of annual report of the US Bureau, it is clearly understood that the US retail
industry including automotive and food service in the year 2008 was found 3 trillion dollar. Shares
of the company surged to an all time high, jumping more than 10 percent after the world's biggest
retailer showed. Along with this, it can hold its own in a challenging retail environment. Their net
income of the year is 3.02 billion dollar and it is the highest number till date.
The average ticket at U.S. stores of Walmart was up 1.2 percent, and its helped by the paid
growth of their food beverages enterprise. On the other hand, With the help of training session and
development program, they are able to increase the information, knowledge, abilities and skills in
the employees. However, they are able to provide more effective services to the customers. The
average customer's satisfaction ratio is increase by 10 percent and it is very beneficial for the
organisation. They have numbers of customers and their existing customers have become advocates
for popular initiatives like online grocery and free two day shipping. Then as the outcome, new
customers, suppliers, and businesses are developing a good relationship with the Walmart
organisation and it is a very important benefit and advantage for the business(Makovhololo and
Iyamu,2017).
Competitive advantage of Walmart organisation

 Walmart business strategy is based on the everyday low prices philosophy of the
organisation. Competitive advantage of Walmart relies on the cost leadership. Other than
that, management of the strategic level consistently aim to associate Wall mart competitive
advantage with price, access, assortment and experience.
 They expanded their business in various areas of the world and it is the biggest advantage of
the company. They have large number of competitive advantages which were affected by
the performance in both positive and negative way.
 There are number of companies who are providing the similar service and products in the
market, but they do not ' have effective employees, technologies and marketing strategies
like Walmart organisation. However, the company is able to take advantage of their number
of employees, marketing strategies and technologies of the business.
 Moreover, they established around 11500 stores all over the global till the year 2015. One
of the important and effective performance of the organisation is helped Walmart to
generate the large number of profit and revenues which was important for the enterprise to
grow and expand. Along with this, they are able to maintain good relationship between
company and customers, however it is the biggest advantage of the organisation.
 They use the analysis method to identify the trend, and marketing strategies of their
competitors, so they can able to provide their products and services according to trend.
Walmart company holds the leading position in the entire market still as they overcome the
challenges and conflicts face by them.
Task 2: Strength and Abilities of Walmart
In order to achieve productivity and profitability each and every business or organisation
develops and implement various unique or effective tools and techniques. For achieving business
goals and success by using various competitive strategies. Different organisations have some
innovative and useful capabilities and strengths to obtain success in the business. The Walmart has
a broad range of business functions and activities which help them to achieve organisational
sustainability as well as lead the market with an impressive marketing position. The different
functions of Walmart are mentioned as below -
 Functions of human resource management – The human resources or workforce is very
essential for an organisation in order to survive or sustain within a market. Employees are

the essential elements, strengths and assets which assists to obtain various competitive
advantages(Reed and Todd,2014). Walmart concentrate on creating strong and effective
work-force for performing effective function and business activities. Human resource
management of an organisation creates, maintain and organise the workforce or human
resources of a company for obtaining efficiency and effectiveness within the organisational
operations. The Human resource department of Walmart ensures that the employees are
contented with the workplace and their roles or responsibility within the organisation. The
company provides various rewards to their employees such as promotions, bonuses etc
according the performance measured with the help of the human resource management.
 Marketing functions – The Walmart adopted the Everyday low price strategy in order to
make their products valuable. The company gains popularity with the help of word of
mouth marketing or communication. The Walmart gains a lot of popularity with this
adversing or marketing technique. The word of mouth communication also helps Walmart
to reduce their advertising budget. It is analysed that the company is spending tree times
lower than the other rivals or companies in the industry. The Walmart spend around 0.55%
on the marketing or promotion of its products and services. Although, they have the biggest
advertising budget across the world(Martins and Nel,2014).
 Information technology – Information technology or communication is one of the most
important linking, integration and connection of the whole value chain in the Walmart. The
company manages and maintain various other functions of the organisation such as
logistics. The technologies help various departments of an organisation to overcome
different challenges, issues and problems in the business operations and continuity.
Information technologies assist Walmart to perform the day to day operations or activities
such as managerial process, data mining and inventory control. It also helps the company to
identify and analyse important information used for forecasting, refill and production of the
products. Therefore, the information technology is a very important function performed by
the Walmart to improve the business performance.
 Purchasing functions – The purchasing function is also a critical activity performed by the
Walmart in order to gain competitive advantages within the market. The suppliers are very
important elements that directly affect cost of the products. The Walmart use effective
strategies in order to develop strong relationship with their suppliers. This relationship helps

the company to adopt the low cost strategy, the suppliers provides goods and services at a
low cost due to the healthy and good relationship with the company. The Everyday Low
price strategy helps Walmart to buy good at comparatively low cost, the company have
various options and range of suppliers to purchase goods from. The low cost strategy helps
Walmart in decreasing manufacturing cost of products and increase its profit margin by
offering low price products as well as enhancing the sales(Gourova and
Dragomirova,2015).
 Warehousing and Distribution – Walmart has an effective logistics and excellent
distribution network which makes it a leading company within an industry. The goods
purchased by the Walmart are instantly shipped to their main centre of distribution and
further the goods are shipped to various stores. The Walmart has a largest and most
effective distribution channel within the Bay-Town, they use group of trucks which helps to
distribute the goods effectively and efficiently. The Company has a well organised structure
for planning, packaging and delivery of goods which assist the organisation in increasing
the productivity as well as improving business performance(Johnson,2017).
 Store Operation – The Walmart focus on providing a great and impressive shopping
experience to their customers, the company's main objective or motive is to gain high
customer satisfaction. The Walmart stores are build with a huge space which ensure that
various product are placed separately offering comfort to the customers. The stores of the
company are established with an objective offering a great shopping experience to the
customers. The stores are handled and managed by skilled managers or supervisor, in order
to perform effective managerial functions and controls the other employees working in the
stores.
Task 3 : Sustainable Advantages of Walmart
Walmart has various competitive advantages that helps them to sustain their leading
position within the market. The organisation makes sure that they plan and implement beneficial
competitive strategies in order to increase the profitability of the business. The company has an
effective strategic management that assists them achieve various advantages, these advantages are
as described below -
 Cost leadership – The cost leadership approach helps an organisation to attract their
customers by offering low price products as compared to their competitors. This approach

has two main benefits which are obtaining high profit margin and enabling the company to
afford the low prices. Walmart focus on offering low price products to their customers as
they need to achieve consumer satisfaction which is very important for success. They are
effective in managing their low cost manufacturing process that helps to produce good with
low cost. The cost leadership approach helps the Walmart to gain significant competitve
advantage of the
 Promoting Strategy – "The Everyday Low Price" startegy of Walmart figures out how to
build the interest of clients. It gets less demanding for the organization to advertise or
elevate the items because of viable client relationship created through low value
methodology. The organization accomplish reputation through verbal which is a successful
publicizing, other than this Walmart concentrate on building up a powerful promoting with
an appropriate spending plan, spending less and getting high exposure is a primary intention
of Walmart's showcasing system.
 Differentiation Strategy – The Company separate itself from the contenders or adversaries
in the market with numerous highlights. Walmart has built up various stores with extensive
territory for empower a satisfying shopping background for its clients. The stores are
adequately outlined with extensive variety of items and administrations offered by the
organization. The organization focuses on every single zone of an economy instead of
concentrating just on the populated region like their rivals. Walmart likewise accomplished
a high upper hand by extending its business in worldwide market, for example, in Mexico,
China, Japan and so forth. It concentrates on creating colossal chain of stores for giving
productive administrations to the clients.
Walmart store helps individuals around the globe to spare their cash and purchase the items
whenever anyplace through online site of the organization. They rehearse development keeping in
mind the end goal to make cusotmer driven experience that incorporates physical and advanced
shopping. Walmart additionally offers computerized retail including internet business sites and
portable application to clients. Consistently they serve around 260 million clients who visits almost
11000 stores in different nations or sites. The procedure of the organization is to be successful
regarding value, ventures, be focused on assortments and offer an incredible affair to the clients.
Being a pioneer on cost is intended to procure trust of the clients alongside giving an extensive
variety of items and administrations consistently at low costs. The organization utilizes EDLP are

their valuing rationality under which they value their items at low value each day. Consistently
minimal effort is Walmart's dedication for controlling costs with the goal that the cost sparing can
be passed to the clients. The clients can viably buy their items whenever any place as they can get
to different items on the online sites or versatile applications.
TASK 4 : Walmart in preventing duplication and their strategies against
competitive threats
Walmart is an American multinational retail corporation. It is the world's largest company
by revenue. But nowadays, the business is under pressure from deflation in key product categories,
such as food, and the effects of the strong dollar abroad, high prices of their products
comparatively, many stores lack cleanliness, limited stock, currently these are the challenges
Walmart is facing. It is important for any company to maintain their quality to sustain in the
market(Zou,2016). The organization concentrates on the progression of business, Walmart
connected an essential approach of situating isn't to create anything new or extraordinary however
enhance what is now there. This is connected to improve the quality and limit the shortcomings of
the business or organization with a specific end goal to pick up supportability for what's to come.
Walmart could support all through such a significant number of years as reflected in Net wage and
Net offers of monetary rundown 1998 to 2009. The organization additionally documented a main
position as far as gross overall revenue, deal income and aggregate net benefit.
The main motive of Walmart is based on selling their products at comparatively low prices
but nowadays they are hammering their motive to sustain in the market. These days Walmart is
facing so many challenges and they are making structured plan to return with the new boom in the
market. Amazon.com is the biggest rival of Walmart. Walmart can still sustain in the market by
increasing their product quality, by lowering their prices, by generating awareness, innovations,
quantity along with quality and creativity. It is very important for each and every group of
companies to maintain their goodwill among customers for regular growth and development,
Walmart really need to improve their current performance to sustain in the market(Brown,2014).
They can follow measures like increasing quality of their product, lowering prices, by
understanding opportunities. Walmart can defeat it's rival by eliminating all the risk factors, by
applying more proactive approaches, by strengthening their brand image, by following successive
business measures, by following continue promotional efforts that have proven successful, by
improving products quality. It is very important for each and every business to maintain it's quality

for maintaining the desired position in the market. If crises occur then firms should take proper
measures to eliminate them and to regain their trust among customers. All businesses should
develop a deep understanding of their current core customers and determine what makes them
enthusiasts. Walmart's growth depends on the firm’s ability to capitalize on its strengths and
eliminate its weaknesses. It's profit margin is very thin. Selling prices of Walmart is very low that's
why it's profit margin is also very low. The key measures like improving quality, innovation of new
products, quantity with quality can prove to be great measures. It's essential for every business firm
to overcome the crises and earn their past market position and trust of their customers(Curzon and
Blandford,2017).
Walmart in achieving competitive advantages and their strategies against competitors
There is a very high and intense competition within the market according to present
scenario, it is very important for each and every organisation to achieve various competitive
advantages in order to obtain a leading market position. The Walmart's strategic management is
very effective in developing successful plans for gaining the competitive advantages within the
industry and as a result they are at the leading position within the retailing sector. The company
concentrates on developing or introducing new and unique ideas which are difficult to be copied. In
order to minimise the risk or threat of competition Walmart focus on creating strategies which can
not be imitated by the competitors. There are various method used by the Walmart in order to
reduce the risk of imitation as described below -
1. Acquisition of resources – Walmart has an impressive and effective channel for sourcing
the important and necessary resources. The company has a healthy and good relationship
with their customers which is very important for the business inn order to get a smooth flow
of goods or raw material at low cost. This also help them to achieve low cost of production
and enable the company to offer products to the customers at very low price.
2. Effective warehousing and distribution - The other important advantage for the Walmart
is their effective and efficient distribution and warehousing channel. The company has the
largest distribution channel as compared to the competitors which help them to increase the
efficiency of the delivering process and in the overall performance of the organisation.
3. Market Pricing and Analysis – The Walmert successfully sustained its low price strategy
by decreasing the cost of production continuously. This helps them to offer good quality

products to their customer at an impressive and low price. This helps the company to
achieve customer satisfaction and building good relationship with them. The Walmart is a
successful and leading company within the industry due to the customer satisfaction and
loyalty.(Abbott,2016).
Conclusion
The above report concluded that the organisational strategies are very important and
beneficial for an organisation such as Walmart. The Walmart performs various functions such as in
store operations, purchasing, warehousing and distribution etc in order to achieve their
organisational objectives and goals. The report also describes the various competitive strategies as
well as their advantages which help the Walmart in gaining profitability and a leading position
within the marketplace.

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