Question

theoretical concept of walmart being based on its business strategy

Answer 1

Walmart business strategy is based on ‘everyday low prices’ philosophy of the company.

An efficient utilization of online sales channel contributes to the level of cost-efficiency of retail operations and about 75 percent of walmart sales come from non-store inventory.

Walmart strives to offer the widest choice of products for the cheapest price, along with giving customers the opportunity of choosing the most convenient channel to facilitate the purchase.

Wall Mart competitive advantage relies on cost leadership.

Wall Mart competitive advantage with price, access, assortment and experience. Since appointment of Doug McMillion as CEO, introduced important changes in Walmart business strategy in the following three directions

1.Increasing focus on customer services. In February 2015, the company announced a USD1 billion investment in U.S. hourly associates to provide higher wages, more training and increased opportunities to build a career with Walmart.

2.Improving groceries. Due to increasing level of health-consciousness of consumers, Walmart is attempting to increase its range of organic options and fresh produce. This change is more evident in the US market and it is being actively integrated into marketing communication message of the brand.

3.Enhancing the flexibility of the shopping experience. It has been noted that “Wal-Mart is working to integrate its physical stores with the digital business. For example, thanks to the latest changes, customers are able to collect their online orders from stores and they can also get text reminders from the pharmacy.

Generally, Walmart competitive advantage can be sustained in the global marketplace in long-term perspective. ‘We Operate for Less’ and ‘We Buy for Less’.