Strategic Management of Walmart

This report discusses the strategic management aspect of Walmart, including its background, industry structure, market position, innovation, CSR, and governance.

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background of the company........................................................................................................3
Industry structure, market position, country markets and size....................................................4
Innovation and strategic innovation.............................................................................................5
CSR (corporate social responsibility)..........................................................................................6
Governance and ethics.................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is very necessary task for any business or venture in market place.
Basically, proper strategic management always provides an excellent return to different
businesses in the market place. Currently most business in across the world has focused on hiring
different people or employees within their workplace who have excellent knowledge about how
to manage different strategies in the business environment (Wooldridge and Cowden, 2020).
This report discusses strategic management aspect of Walmart. This is the most popular and
highly reputed American retail business, headquartered in Arkansas, United States. This has
highly succeeded in expanding its business operations in different countries. This report
discusses industry structure, country market and size and market position of the Walmart.
Different aspects of Walmart like; Innovation and strategic innovation, governance and ethics
and CSR also has been discussed in this report.
MAIN BODY
Background of the company
Walmart, this is a very big name in the retail industry right now. This is an American
giant retail venture or company which currently has served its different retail products and
services in many countries across the world. The company basically founded 58 years ago in
year 1962 by Sam Walton. From establishment to date, upper management of this company has
fully focused on highly expanding its business operation in the international retail sector. That’s
why currently this business leads the global retail sector or industry. Currently this company
serves in 27 countries including United States, Japan, United Kingdom, Mexico, Chile, Canada
and South Africa etc. with over 11500 stores and supermarkets. Nowadays this retail venture has
the workforce of 2.2 million effective employees in across the world. In these all employees, 1.5
million employees are working only in its United States’ operations.
These statistics are enough to show that, how widely this company has expanded its
business operations. There are clothing groceries, footwear, toys, health and beauty and
electronics some key products of Walmart (Wan, Jin and Sui, 2019). Nowadays, Doug McMillon
is the president and CEO (chief executive officer) and Greg Penner is the chairman of this giant

retail company. In the recent financial year, Walmart has generated revenue of (US) $523.964
billion, with net income of (US) $14.881 billion, which are too excellent for a retail organisation.
Basically, top-level management is fully able to run Walmart on the progressive path.
Industry structure, market position, country markets and size
Walmart is an American multinational retailer company that operates it’s business into
hypermarkets. There are four type retail industry structure i.e. perfect competition, monopoly,
monopolistic competition and oligopoly and each industry structure has different characteristics.
However, Walmart is grocery retailer that was founded in 1962. As know retail industry is
considered economical stimulant because retail companies keep such product which fulfil basic
needs of individuals. Oligopoly market structure does not emphasize on the market structure but
also relates a firm with others effectively (Walmart Market Structure Research Paper, 2020).
While oligopolistic markets always agree with working together in order to get mutual benefits
jointly. But the major drawback of the oligopolistic markets is that there has price rigidity
through which no price war takes place among companies.
Walmart operates it’s business in oligopoly and oligopolistic markets so that it enables to
gain profitable results in the business. Company has achieved extensive competitive advantage
due to oligopolistic market over it’s product. Walmart is monopoly in the retail industry but
operates it’s business in oligopolistic market structure. Walmart follows hierarchical
organizational structure wherein power is administrated accordingly hierarchical (Yu, Zhou and
Shi, 2020). Upper management is mainly responsible for taking all decisions and control on all
business activities that perform by different functional units. It posse’s wide product line and
services and fulfil all needs of customers accordingly their perceptions. Due to effective product
portfolio and services it has achieved strong brand image in the global market and has famed as
world’s largest company. There is a reason such as it has earned high revenue in US as compared
others. It is also known as largest private employer in the world because around 2.2 million
people are employed in the company. Walmart independently operates in 11,500 stores under 56
banners in more than 27 countries across the world. It has established strong online positioning
in e-commerce websites and offers online home delivery services around 10 countries. It is not
only operated it’s business in hypermarket but also physical stores, discount stores and
conventional stores.

It is more popularized in UK market because it has captured large market share on it’s
certain products. part from this, it has perfected it’s price positioning in the various manners i.e.
customer-friendly prices and focus on bulk sales in order to increase it’s sales revenue instead of
hiking prices of products. It practices excellent procurement strategies that enables to bargain
with reasonable suppliers in the supply chain to keep cost lower. It is evident that Walmart has
strong market positioning. It has captured 45.07% market share in the e-commerce market that is
quite high as compared other retail companies like Amazon Inc., Bed Bath and Beyond Inc. etc.
Estimated 23% market share has captured by Walmart in UK so it has become one of the major
competitors for the Tesco (Report: Walmart Continues To Gain Market Share In Most
Categories, 2019). The reason behind is that Tesco has captured 275 market shares on it’s certain
products in the supermarket. It is evident that Walmart is highly successful company according
to 21st century views. Strong brand image helps Walmart to build loyal customer base which
brings economic benefits in the business in efficient manner.
Innovation and strategic innovation
There are innovation and strategic innovation two different aspects. Basically, innovation
is the process to turn creativity in the form a new product or a new service. On the other hand,
strategic innovation is a systems method or approach for optimizing own innovation portfolio,
for helping own company to achieve sustainable transformational growth and competitive
advantage. Currently top-level management of Walmart is completely aware about these both
aspects. That’s why this company is too active ion in the terms of innovating new products and
services. The Walmart generally uses its innovation competence in that condition when it wants
to create or produce an exclusive range of products and services. However, innovating exclusive
range of products and services is not a simple task to an ordinary business, because there are lots
of time, energy and resources has highly required to innovate a single exclusive product or
service. Currently Walmart has wide range of exclusive products and services, because its
research and development department has putted its huge efforts for innovating that kind of
products and services.
According to top-level management of this company, currently innovation is one of keys
for the company which highly contributes in marinating high reputation of the company in
market place (Akıcı, 2018). Of course, its many other functions also have played great for

achieving sustainable growth for the company, but innovation is one of key functions of this
company. Top-level management is completely aware about the advantages of strategic
management. That’s why currently company’s each innovation has cover up strategically.
Currently most retail businesses in across the world are also trying to make strategic innovation
for gaining effective outcomes. In this situation, upper management at Walmart should always be
focused on the strategic management for taking huge competitive advantage in market place.
With the support of strategic management, Walmart enables to develop new range of products
and services with very law investment, because strategic management has informed this giant
retail company about how to save lots of precious resources and time while innovating new
products or services. According to these all factors, innovation and strategic innovation very
positively affects this company in market place.
CSR (corporate social responsibility)
Corporate social responsibilities, a business has always required to fulfil CSR in the
market place, so that this can support to a business for gaining an excellent brand image in
market place (Usnick and et.al., 2018). Basically, CSR is the way to for a company or business to
do work in the social or public welfare. For example; many times, many businesses have opened
new free schools, colleges and hospitals in the welfare of society. When any company fulfils
corporate social responsibility, then it will simply gain huge respect in market place and its brand
image or reputation has automatically raised in the market. Currently most people or customers
also has proper knowledge of the CSR, that’s why they always give higher priority to buy
products and services only from those businesses or venture which has systematically fulfils the
CSR in market place. According to governments of the many countries, there are each and every
business within their authorisation area fully responsible to fulfil the CSR in market place.
In the case of Walmart, this retail company always fulfils CSR in market place, because
top-level management of the company is completely aware about the impact or implications of
corporate social responsibility. Currently Walmart operates in over 27 countries across the world,
in which this company fulfil the obligation of corporate social responsibility in its operations of
all countries (Akici, 2018). That’s why currently people within most countries respect this
company, and employees of this company feels valued by the management, because they think
upper management of company thinks about the social welfare or public welfare. Many times,

Walmart provides huge fund to different NGO and governing hospitals, schools etc. in the form
of charity or donation for fulfilling its obligation of corporate social responsibility. So that,
currently CRS is beneficial for both, Walmart as well as society.
Governance and ethics
Governance of the Walmart is completely seen by the company’s upper level
management, like; managing director, chief executive officer and chief operation officer.
Basically, these are key people of the company which make plans, policies and strategies for
maintaining hugeness of Walmart in the international retail industry. Currently this company
operates over 1500 stores and supermarkets in across the world, in which different store
managers and leaders of the company has always required to take orders from the upper level
management of this retail venture, because currently this upper level management is the
governance of Walmart (Mirvis, 2020). Top-level management of the company always provides
specific guidelines and rules and regulations to its different employees or people, in which every
employees or people of this retail organisation has required to properly follow all regulations and
rules and regulations of the top-level management in their workplace.
On the other side, ethics are also key aspect of the company. Basically, top-level
management of the company always believes in following all ethical considerations in its
workplace, because this is very necessary to company for maintaining its effectiveness and
positive brand image in market place. According to administration of Walmart, when company
follows different ethical considerations in workplace, then it enables to make its work culture
more effective and favourable to employees. Currently most employees or customers are very
satisfied with the company, because upper level management very strictly follow the business
ethics within its workplace.
CONCLUSION
On the basis of all findings, it can be concluded that, top-level management of Walmart is
very successfully running its business operations in the different countries by proper strategic
management. Currently the company many of effective employees which only works for
managing and developing different business strategies for the company (Kalkanci, Rahmani and
Toktay, 2019). Top-level management of Walmart has given special orders to its strategy makers

for always making or innovating such business strategies which can add very high value for the
Walmart. With the support of effective strategic management, this giant retail company currently
leads the global retail industry. The management at Walmart is very active in the terms of more
and more expand its business operations in different segments of the market. In it’s all business
strategies, company’s promotional strategies are the most effective, because promotional
strategies of Walmart are fully able to attract lots of customers in the market place.

REFERENCES
Books & Journals
Akici, A., 2018. Using Social Media Data in Demand Forecasting: the Case of Walmart.
Akıcı, A., 2018. Using Social Media Data in Demand Forecasting: The Case of Walmart.
(Doctoral dissertation, St. Mary's University (Texas)).
Kalkanci, B., Rahmani, M. and Toktay, L. B., 2019. The role of inclusive innovation in
promoting social sustainability. Production and Operations Management. 28(12).
pp.2960-2982.
Mirvis, P. H., 2020. From inequity to inclusive prosperity: The corporate role. Organizational
Dynamics.
Usnick, L., and et.al., 2018. Managing Compliance Functions: Centralize, Decentralize, or
Hybridize?. Southern Law Journal. 28(2). pp.201-214.
Wan, W., Jin, Y. and Sui, Y., 2019. Negotiation Strategy to Achieve a Win-Win Result within
Oligopolies. American Journal of Industrial and Business Management. 9(12). pp.2144-
2155.
Wooldridge, B. and Cowden, B., 2020. Strategic Decision-Making in Business. In Oxford
Research Encyclopedia of Business and Management.
Yu, Y., Zhou, S. and Shi, Y., 2020. Information sharing or not across the supply chain: The role
of carbon emission reduction. Transportation Research Part E: Logistics and
Transportation Review. 137. p.101915.
Online
Report: Walmart Continues To Gain Market Share In Most Categories. 2019. [Online].
Available Through:-<https://www.mediapost.com/publications/article/331054/report-
walmart-continues-to-gain-market-sharein.html#:~:text=In%20grocery%2C
%20Walmart%20dominates%20with,compared%20with%2015%25%20in%202017.>.
Walmart Market Structure Research Paper. 2020. [Online]. Available Through:-
<https://ivypanda.com/essays/walmart-market- structure/#:~:text=There%20are%20four
%20market%20structures,Arkansas%20(Fishman%2C%202006).>.