INTRODUCTION

 Walmart Inc. is a major force in the global retail market, recognized as the top
company by sales volume. Founded by Sam Walton in 1962, the business has
grown from a small discount store in Bentonville, Arkansas, to a multinational
corporation with over 10,000 outlets in 20 countries. The company offers a
wide range of products, from groceries to electronics, all at competitive prices.
By focusing on cost leadership, Walmart successfully maintains its competitive
edge in the retail environment. Additionally, it has significantly advanced its
presence in the e-commerce sector in recent years, expanding its online
offerings alongside its brick-and-mortar stores.
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 Executive Summary
 Key Objectives: Major goals for Walmart include growing its presence in emerging markets,
enhancing customer experiences both online and in-store, and focusing on sustainability and
health-conscious products. Leveraging technology to improve operations and supply chain
efficiency is also a priority.
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 Products and Services: Walmart offers a wide range of items, such as groceries, clothing,
electronics, health products, and financial services, catering to diverse consumer needs.
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 Main Strategy: The company’s core strategy is cost leadership, allowing it to provide
competitive pricing while expanding its e-commerce capabilities and integrating more
sustainable practices within its offerings.
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 Business Overview: Operating as a global retail leader, Walmart serves millions of customers
through both physical locations and its online platform. The company’s strengths include low
prices and an efficient supply chain, which facilitate a successful e-commerce expansion
alongside its traditional retail model.
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 DESCRIPTION OF THE BUSINESS

 Walmart primarily targets middle- and low-income families, as well as

consumers who prioritize affordability and convenience. This broad
customer base spans various demographics, including young professionals
and retirees. Walmart's appeal lies in its consistent low pricing, wide
selection of products, and increasing availability of health-oriented and
organic options, making it a preferred shopping destination for budget-
conscious consumers.
Weaknesses

 Disruption in the e-commerce websites and mobile applications

 Trouble in the supply chain for unavailability of goods and transports to carry out to the
stores and other facilities
 Costs for relocation of stores, clubs, and facilities
 Real estate laws, ordinances, and restrictions to building and expand Walmart business
 Labor lawsuits
 Lack of differentiation
 High employee turnover
 Adverse publicity and negative public perception
 Decreasing margins
 Matured markets and limited product expansion
 Slow to innovate
Opportunities

 Availability of attractive investment opportunities in the retail market and digital retail
acquisition for online shopping
 Business expansion in new markets
 Availability of utilities for new and expanded units
 Availability of skilled labor, material in which new units to be constructed
 Healthy eating trends
 Emerging markets
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 Threats
 Costs for information security to prevent cyber-attacks
 Unanticipated changes in business goals and operating philosophy
 Conflict of interests
 Intense competition and increasing competitor’s powers
 International barriers
 Local communities’ resistance
 Market saturation
 Online gaming
 Globally changing market condition
 Inflation and deflation
 Fluctuated currency exchange rate and market interest rate (Currency volatility)
 Market labor costs
 Changes in laws-regulations and tax rates, as well as the imposition of new taxes &surcharges
 Porter’s Five Forces Analysis
 Threat of New Entrants
 New competitors in the field of E-commerce and M-commerce are significant threats for
 Walmart. However, Amazon is leading in this online business. There is a decreasing number of
 independent retailers; most retail stores are mall and chain stores. As there is no barrier to
 starting up a USA store, Walmart has the threat coming from new entrants
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 Bargaining Power of Customers

 The buyers can put Walmart under pressure in the territory where it operates. Customers as a whole if
high-quality demand products at low prices make Walmart adapt to their expectations. It considers its
customers' great power as they have many alternatives from where they can buy and have sufficient
information. When they buy, they can check prices from different stores.
 Bargaining Power of Suppliers
 As Walmart is big in size, suppliers have little power against this company to fear losing great sales; thus,
it can leave small suppliers. This facilitates Walmart to push the supplier to be more efficient, lower
prices, and more beneficial. Sometimes it treats its supplier that is considered unfair because it does not
lead them to raise their profits. A company that sells 30% of its products to Walmart finds it hard to reject
a retail offer even if it does not get desirable treatment. Considering all, it can be said that there is very
little bargaining power of suppliers in Walmart
  Products and Services
 Some other retailers compete aggressively against Walmart by specializing in certain products or selling their
products online worldwide. There are some non-specialized but deal with a wide range, which can be found in
another store offered by Walmart. The retailers that offer unique products having a distinct advantage over
competitors. The primary five competitors generate about half a trillion USD per year. In contrast, two e-
commerce giants are gaining a more significant market share, Amazon and Dell Direct, combined to generate
about the US $38.8 billion where Amazon is increasing its sales year after year account for less than 15% of
total retail sales
 Competitive Rivalry Within the Industry
 For being internationally expanded, Walmart has been facing competition in different countries where direct
competition comes from big retailer chains. As about 70% of sales revenue comes from the USA, the primary
competitors affect its performance. They are those operating in the origin country, including Kroger, Target,
Costco, The Home Depot, Walgreen, and CVS Caremark, which are the most significant direct competitors
offering a variety of similar products to the customers. Despite Kroger and Target, others also have international
operations which create completion in foreign countries too. After Walmart, Target is the largest re-tailer that
delivers discount goods with high quality and broader product variety, attracting high-income customers
(average annual income US $50,000 compared to Walmart’s US $35,000) and generating higher revenues. The
indirect competition occurs when a new distribution company opens stores to serve a sizeable affluent customer
base, such as convenience stores having more than 120,000 stores account for the US $350 billion revenue per
year. They sell a limited variety of products like food, cigarettes, groceries, candy, magazines, and fuel located
in high-traffic locations in general. Other competitors for Walmart are vending machines that are becoming
popular that sell drinks, snacks, coffee, sandwiches owned by franchises that rent office space or commercial
buildings in high traffic areas.
 Walmart operates with a hierarchical management structure, with clear delineations of authority and
responsibility at various levels of the organization.
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 Top Management
 CEO: Doug McMillon, who is responsible for the overall strategic direction and operations of Walmart.
 CFO: Brett Biggs, overseeing Walmart's financial strategy and management.
 COO: Judith McKenna, responsible for managing operations across Walmart's various segments.
 Organizational Chart
 Walmart’s organizational structure includes divisions for different regions (e.g., U.S., International, and Sam's
Club), with functional departments such as finance, marketing, logistics, and human resources supporting the
operations.
 Key Resources
 Human Capital: Walmart’s large and skilled workforce is vital in executing its operational strategy and
ensuring efficient supply chain management.
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 Technology Infrastructure: Walmart’s investment in digital technology, from e-commerce platforms to data
analytics, enables it to remain competitive in a tech-driven retail environment.
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 Supply Chain Network: The company’s robust and global supply chain is a key resource, allowing for cost
leadership and quick product delivery
  Fundamental Analysis and Recommendations
 Walmart operates in a fiercely competitive retail landscape, contending with both national and international
retailers as well as various e-commerce platforms. The company managed to flourish during the recession of
2007 to 2009; however, it now faces challenges like declining earnings and escalating investments in digital
sales, which have raised some concerns. Despite these issues, Walmart maintains a robust financial position
characterized by effective debt management and reliable dividend payouts, although it does encounter certain
liquidity concerns. To enhance profitability, Walmart should concentrate on improving its digital platforms,
optimizing supply chain efficiency, and tackling liquidity issues. Investing in employee training and raising
wages can significantly boost service quality and employee retention.
 Suggested Solutions:
 Enhance Digital Transformation: Aim to make digital investments more profitable by refining the e-commerce
platform and elevating the customer experience.
 Improve Operational Efficiency: Tackle supply chain and inventory management challenges to decrease costs
and enhance product availability.
 Increase Liquidity: Fortify short-term assets to improve cash flow and meet financial obligations.
 Invest in Workforce Development: Focus on employee training programs and wage increases to boost customer
service quality.
 Diversify Revenue Streams: Consider exploring smaller store formats and expanding into new categories,
particularly in organic and sustainable products.
 Leverage Technology: Utilize AI and data analytics to enhance customer insights and operational efficiency.
 Strategic Global Expansion: Prioritize growth in emerging markets characterized by strong consumer demand.
 CONCLUDING REMARKS
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 Walmart continues to be a leading player in the global retail sector. However,

to ensure ongoing growth, it must adapt to evolving consumer preferences and
embrace technological changes. Although competition remains intense,
Walmart's sound financial foundation and strategic initiatives focused on
digital innovation and workforce enhancement position it well for long-term
success. By addressing liquidity and operational hurdles, Walmart can sustain
its market leadership and continue offering value to its shareholders.
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