This document provides an overview of Walmart's business strategy, including its vision and mission statements, strategic and financial objectives, core values, and sustainable competitive strategies.
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Running head: WALMART STORES BUSINESS STRATEGY Walmart Stores Business Strategy Name Institution
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WALMART STORES BUSINESS STRATEGY2 Overview Walmart Stores is a publicly-traded company with its headquarters in Bentonville, US. The company was founded in 1962 and has its presence in over one hundred countries across the globe. Walmart deals operate in the retailer industry in consumer products, pharmacy, wireless, and financial services. The store is one retailer globally in terms of employment and market capitalization(Walmart, 2019). The company has employed over 2.2 million people in four divisions namely: Walmart US., Global eCommerce, Sam’s Club and Walmart international. Likewise, Walmart’s market capitalization is US$340.9 billion. Walmart faces intense competition from Target, Costco, Lowe’s, Kroger, and Amazon. Walmart’s vision and mission statements Vision statement: “Be the destination for customers to save money, no matter how they want to shop.” Mission Statement: “To save people money so they can live better.” A vision statement establishes the long term objectives for a company. Walmart's vision statement helps the company to identify itself as customers’ preferred shopping destination. The vision statements meet all the merits of a vision statement, as outlined in Table 2.1. Walmart’s vision statement stipulates its desire to be a market leader based on components of affordability, convenience, and customer-oriented(Kirkpatrick, 2017). The company understands how cost impact customers purchasing power. The concept of affordability is used to communicate product pricing in its stores compared to other stores. Walmart seeks to provide convinces to its customers by providing products that meet all their needs and preferences. Moreover, the statement is short, precise and memorable to customers (David & David, 2014).
WALMART STORES BUSINESS STRATEGY3 Walmart strategic and Financial objectives StrategiesType of strategy To increase the sales volume from the online market segment Strategic objective To become a leader in low cost by applying operational efficiencies by providing products at significantly lower prices compared to competitors. Financial strategy To penetrate and dominate the global retail marketStrategic Objective To increase sales by focusing on exisitng stores and investing more in the e-commerce segment. Financial objective Walmart’s core values, management, and sustainable competitive strategies Walmart’s core values are in line with its vision and mission statements. The core values are; a)Customer-first b)Listen c)Innovative d)Frontline focused e)High performance f)Inclusive g)Accountable h)Fairness i)And, honesty. The core values are realistic because they emphasize how essential customers are to Walmart. The company portrays traits of flexibility and adaptability as a means of maintaining its superiority in delivering customer services(Pace, 2017). Lastly, visionary leadership has played an integral role in Walmart’s success. The president and CEO of Walmart, Doug McMillon, has succeeded in effectively managing the
WALMART STORES BUSINESS STRATEGY4 company resources and workforce(Walmart, 2019). Moreover, the success of Walmart has based five main sustainable factors. First, positioning its products in the consumers’ minds. Secondly, value propositions through customer-centric and low costs. Thirdly, ability to innovate. Fourthly, ability to turn potential consumers into active buyers. Fifthly, an internal culture that has consistently enhanced Walmart as a leading brand(Davidson, 2002).
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WALMART STORES BUSINESS STRATEGY5 References David, M. E., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction.International Journal of Business, Marketing, & Decision Science, 95-110. Davidson, H. (2002).The Committed Enterprise.Oxford: Butterworth Heinemann. Kirkpatrick, S. (2017). Toward a grounded theory: A qualitative study of vision statement development.Journal of Management Policy and Practice, 18 (1),87-101. Pace, S. (2017). Shaping corporate brands: From product features to corporate mission. International Studies of Management & Organization, 47 (2), 197-205. Walmart. (2019, October 22).Walmart: Our Story. Retrieved from Walmart: https://corporate.walmart.com/our-story