The Walmart's Business Model : Assignment
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Added on 2020-05-16
The Walmart's Business Model : Assignment
Added on 2020-05-16
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Running head: BUSINESS MODELS 1Walmart’s Business ModelStudent NameCourseDateInstitutional affiliation
BUSINESS MODELS 2IntroductionA business model is a blueprint, used by businesses, to identify the various ways in whichit will run its services. Business models highlight the means of operations incorporated by a business to help improve service and maximize profits. Business models are part of the strategic plan of an organization. Different organizations employ different business models, as they deal with a different variety of products and target different market shares. The construction of a business model is in alignment with the value proposition of the business (Osterwalder, Pigneur, Bernarda, & Smith, 2014). The value proposition is a direct view of the benefits the business aims at providing to its clients and target population. There are multiple business models, due to increase in globalization. As companies compete to gain a competitive advantage over each other(Parnell and Lester, 2008), they employ different business models. One such organization is the Walmart Stores. Walmart Stores IncorporationWalmart is the World’s largest retail store (McGee, 2018). The store has its headquarters in Bentonville, Arkansas. Walmart uses various methods of operations, one being the Sam’s Club. Through this, Walmart provides services to various parts of the world including the UnitedStates, Brazil, Mexico, and China. Walmart operates on an international market and serves over fifty million customers daily. The store provides inventory services to its customers. It deals witha wide variety of products among them being garden supplies, electronics, health and beauty supplies, furniture, sporting attire, and equipment, as well as children accessories and toys. With increased globalization, the store faces various benefits as well as challenges. Among the significant benefits are increased market share, use of advanced technology, and efficient workflow. The significant challenges faced by Walmart include competition from other firms,
BUSINESS MODELS 3legal and regulatory laws, and myriads of cultures in the business environment. However, despitethese challenges, Walmart is still the largest retail shop in the world and enjoys much of the market share. The business model it incorporates gives it its competitive advantage over other firms (Parnell and Lester, 2008). Walmart’s Business Model CanvasA business model canvas is a chart that comprises of all activities undertaken by a firm. Walmart employs the Osterwalder and Pigneur’s model, which incorporates the nine building blocks. It consists of various factors affecting the business, which include the principal partners, essential activities, crucial resources, the costs and financial structure, customer relationships, channels, revenue streams, and customer segments (Osterwalder & Pigneur, 2010). These factorsare incorporated into the business’ value proposition. 1. Key PartnersKey partners include the various stakeholders with whom the business is contact. They include all activities that build the bond between the suppliers and the buyers in the supply chain (Morschett, Schramm-Klein, & Zentes, 2015). The key partners for Walmart include the suppliers and buyers. Walmart stores create a conducive environment whereby the suppliers can meet and satisfy their client’s desires. Through this, suppliers gain access to a larger market, whereas the buyers have a wide variety of options to choose. 2. ActivitiesWalmart runs on several business operations including the purchasing, storage, delivery of inventory as well as the overall price control. It incorporates advanced technology to help in the movement of inventory along the supply chain. As a result, the company enjoys lower operation costs, while at the same time providing efficiency in its workflow.
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