NAME OF THE PROGRAM: BACHELOR OF BUSINESS ADMINSTRATION

NAME OF THE STUDENT : VURUSARI SANTHOSH

ROLL NUMBER: 2114504307

TITLE OF THE PROJECT: RETAIL MARKET

FINAL PROJECT - SYNOPSIS FORMAT

INTRODUCTION

Wal-Mart Stores , Inc., branded as Walmart is an American multinational

retail corporation that runs chains of large discount department stores and
warehouse stores. The company is the world's second largest public
corporation, according to the Fortune Global 500list in 2013, the biggest
private employer in the world with over two million employees, and is the
largest retailer in the world. Walmart remains a family-owned business, as
the company is controlled by the Walton family, who own a 48 percent
stake in Walmart It is also one of theworld's most valuable companies.

The company was founded by Sam Walton in 1962, incorporated on

October 31, 1969, and publicly traded on the New York Stock Exchange in
1972. It is headquartered in Bentonville, Arkansas. Walmart is also the
largest grocery retailer in the United States. In 2009, it generated 51
percent of its US$258 billion sales in the U.S. from grocery business. It
also owns and operates the Sam's Club retail warehouses in North
America.

Walmart helps people around the world save money and live better
anytime and anywhere in retail stores, online and through their mobile
devices. Each week, more than 245 million customers and members visit
our 10,900 stores under 69 banners in 27 countries and ecommerce
websites in 10 countries. With fiscal year 2013 sales of approximately
$466 billion, Walmart employs 2.2 million associates worldwide.

Find out how innovative thinking, leadership through service, and above
all, our commitment to saving people money so they can live better have
made us the business we are today and are shaping the company we will
be tomorrow Walmart operates more than 10,900 retail units under 69
banners in 27 countries and e-commerce websites in 10 countries. We
employ 2.2 million associates around the world — 1.3 million in the U.S.
alone.

VISION
Walmart vision is to provide good quality and services to our customers
while remaining the market leader and striving daily to be the most
admired company.

The secret of successful retailing is to give your customers what they

want. And really, if you think about it from your point of view as a
customer, you want everything: a wide assortment of good-quality
merchandise; the lowest possible prices; guaranteed satisfaction with
what you buy; friendly, knowledgeable service; convenient hours; free
parking; a pleasant shopping experience." - Sam Walton (1918-
1992)

It’s our mission to create opportunities so people can live better. We

consider it our responsibility to make a positive impact in the communities
we serve.

Whether it’s through the grants we provide to the thousands of

organizations that share our mission or through the inspiring volunteer
efforts of Walmart associates, we are passionate about helping people live
better. One community at a time.

Saving people money to help them live better was the goal that Sam
Walton envisioned when he opened the doors to the first Walmart®. This
focus drives everything we do at Walmart. And, for the millions of
customers who shop in our stores around the world each week, it means
they can trust that our brand means we have every day low prices.

GROWTH STRATEGY
The retail giant is dropping its high-end strategy to focus on securing the
loyalty of its base with services such as health care, banking, and
broadband access

Rural America, Wal-Mart wants you back. Gone is the focus on trendy
fashions, 400-thread-count sheet sets, and snooty ads in glossy fashion
mags designed to appeal to a higher-income demographic that rarely
shopped at the store anyway.

These days, Wal-Mart Stores (WMT) is making a big push to woo back its
core audience with a strategy based not just on price cuts, but on a more
holistic approach with deeper and broader services aimed at its core
customers. The latest offer is high-speed Internet access, a costly
proposition in many remote corners of the country. On Oct. 9, Hughes
Network Systems (HUGH) announced it will sell satellite broadband at Wal-
Mart stores. The satellite broadband offering at 2,800 stores is just the
latest in a litany of services the retail giant has rolled out this year.

Clearly, Wal-Mart has struggled to revive sales. Through Aug. 31, sales at
U.S. stores open at least 12 months have grown a mere 0.8%, putting the
company on track for its worst sales year in history. That pace would be
even slower than the 1.9% same-store sales increase in 2006, which was
already Wal-Mart's record worst performance. Overall sales growth is also
slowing: Last year total revenues jumped 11.7%, and analysts estimate an
8.4% increase for this year.

1. Benefits to Brand and Image

What the service effort will do, everyone agrees, is help Wal-Mart secure
customers who are more loyal. Providing its core base with greater
services especially in areas where they are underserved—could cement
Wal-Mart's strength with its audience. "It plays to their sweet spot in terms
of being able to provide cheaper products and services to a particular
customer base and reinforce its brand as a destination for the
underserved," says Robert Passikoff, president of consulting firm Brand
Keys.

Using a retail outlet to sell telecommunication services is nothing new. But

given that half of Wal-Mart's 3,500 stores are in rural areas, the Hughes
deal represents a clever strategy to access Wal-Mart's base. Better
broadband service will clearly benefit rural communities, as the Pew
Internet & American Life Project reported that only 31% of them have
access to high-speed Internet services. "It will also offer a true one-stop-
shopping experience," says Abella.

These services will also help burnish Wal-Mart's image, which has been
tarnished in the last couple of years by heavy criticism of its wage and
health benefit policies and problems with customer service.

Earlier this year, Chief Executive H. Lee Scott announced that over the
next two to three years Wal-Mart will add 400 in-store health clinics to its
already existing base of 78 clinics. Each visit costs an average of $45 to
$50, compared with $150 for a visit to the doctor's and $400 for a trip to
the emergency room. Wal-Mart found that 40% of visitors at these clinics
were uninsured. At the same time, the $4 generic prescriptions Wal-Mart
introduced in September, 2006, now account for more than 35% of all
prescriptions filled at the chain.

Nearly a third of the $4 prescriptions are filled without insurance.

2. New Areas for Price Competition

"The response has been nothing short of spectacular," says Scott "Within
days of announcing our $4 program, countless other discounters, drug
stores, and supermarkets dropped their prices on generic prescriptions."

The Bentonville (Ark.) company earlier this year also announced the Wal-
Mart MoneyCenters , which would offer its customers a host of financial
services including check-cashing, bill payments, and international money
transfers. According to ACNielson , 42% of Wal-Mart shoppers have yearly
household incomes under $40,000. Banking service would help many
customers who are described as "unbanked" because they don't use
banking services. Wal-Mart says its entry into financial services has
already cut some fees, such as checkcashing, by 25% to 50% in certain
markets.

Sure, Wal-Mart is entering unfamiliar territory with Net access. How well
Hughes serves Wal-Mart customers in a service-intensive business could
make it vulnerable to complaints. "Wal-Mart will essentially be a reseller…
and the service quotient will be beyond their control," says Abella. But he
also believes that, as in most product categories Wal-Mart enters, prices
for satellite service in rural areas will drop. And for Wal-Mart's core
customers, low prices always matter.

3. Expansion In Urban Areas With Smaller Format Stores

Wal-Mart’s executives have indicated that the retailer’s future stores will
occupy 8% less space, cost 16% less and will run more efficiently. Wal-
Mart’s smaller stores, called Express stores, are one-tenth the size of a
typical WalMart supercenter and offer 15,000 items in comparison to
100,000 offered at a supercenter. Although their size is much smaller,
Express stores offer day-today groceries and general merchandise. They
are focused on attracting customers who shop regularly for their daily
needs.

Wal-Mart opened its first Express store in June 2011 and had 11 stores
operational at the end of July 2012.In fiscal 2013, the retailer opened 76
smaller format stores, including Wal-Mart Express and Neighborhood
Markets, and plans to add 100 more in the current fiscal year. Wal-Mart
stated that its Express stores are generating double-digit comparable
store sales growth. We believe that this is an encouraging sign for the
company and will help it continue its growth in the U.S. Express format
can be successful in big cities, which have space constraints and where
busy schedules limit many customers from driving to a supercenter.

4. Focus On Social Media & Technology

Wal-Mart has made strong efforts to improve its IT capabilities and has
leveraged social media in order to reach its prospective customers. Its
digital technology unit, WalmartLabs, creates platforms and products
around social and mobile commerce. Since its inception, WalmartLabs has
been actively scouting for acquisitions. In November 2011, it acquired
Grabble, the maker of

‘point of sale technology’ that ties in with mobile phones. Wal-mart is also
trying to leverage social media to drive its sales. In 2011, it partnered with
Facebook and also acquired Kosmix, a social media company to promote
its

offerings.

The U.S. customers are increasingly turning to online shopping and e-

commerce channel provides an incredible growth opportunity. Although
Wal-Mart does not report its e-commerce revenues, Internet Retailer
estimated its online sales to be around $4.9 billion in 2011. In October last
year, Wal-Mart projected this figure to almost double by fiscal 2014. Given
the increased usage of social media and launch of affordable smart
phones, Wal-Mart’s investments in this arena are likely to payoff. It’ll also
help the company to face competitive threat from online retailers such as
Amazon.

HR Policies
The polices regarding the human resource are as follows...
1. Positive & cheerful atmosphere

2. Respect for the individual

3. Stop the bullying

Most important is ...

4. Does not give over time to employee

5. Zero overburden of work

6. Workers right of work shipment

7. Hiring- offer of empolyemnt

8. Diversity of work

9. Pay administrative

10. leave of absence

11. Low hours of work

12. Families to the workers

Marketing
strategies

> Wal-Mart is not particularly known for their impeccable customer

service. Even further, Wal-Mart lacks in cleanliness and breadth of product
lines. But what they lack in aesthetics, they make up for with an
absolutely unparallel convenience and price competitiveness. Wal-Mart
has redefined the art of online marketing, using techniques at grand and
impressive scales to become one of the top company’s in the wide history
of corporate America.

> Wal-Mart’s online marketing campaign covers all facets of strategy,

but through all the apparent strategies, it is their aggressiveness that has
highlighted and broadened their need to succeed and remain at the top of
the industry in retail. But an aggressive campaign inevitably garners
controversy, and through the years, Wal-Mart has been involved with a fair
amount of negative publicity directly involving their specific marketing
strategies. Their bullying nature has caused many to deem them
unreasonable and unfair- Wal-Mart still remains number one despite the
negative attention.

> Wal-Mart’s marketing consists of flooding the market with their

presence. This is alarming for individuals who find Wal-Mart’s business
practices alarming. But with such a massive quantity of stores, intensely
competitive pricing, and such a large market share, their marketing
strategy has entailed an overall takeover of all the appropriate markets.

> They offer many types of products, with a relatively comfortable list
of options. As well, Sam’s Club offers an alternative for those who prefer
bulk. And with such a strong base of customers, they are able to set the
prices for what they pay for. If you want your product in Walmart, you are
at the mercy of them setting the price they will pay. If it is below cost,
then so it is. The truth is, Wal-Mart can offer a company a prime
opportunity to get their product to the masses- even if they lose money
doing so. Their online marketing has them being as transparent as
possible in an attempt to dissuade the controversy to their name. You can
purchase their entire collection of products through the web. You can read
customer reviews, sign-up for a newsletter, and get options for special
deals available only through the website. Despite this, such a business
relies strongly on their physical location- exactly why a store finder is
located right at the top in bright yellow.

> This competitive nature has allowed controversy to flourish under

their name. But their marketing has focused on quantity, and delivering
variety in one location. Their extending hands to Subway and McDonalds
for placement of restaurants in Walmart’s, further validates this claim. As
well, a typical customer can get glasses prescription, get their haircut, and
oil changed under their building. You can purchase jewelry on one side,
and draperies on the other. You can buy groceries and grab a new
lawnmower (while waiting for an oil change). Their recent cooperation
with SunTrust bank has allowed their presence in Southeast Walmart’s.
Their marketing has always relied on variety- how many single things can
you do in one location.
> Wal-Mart has garnered its fair share of controversy. Yet, the
convenience is truly unrivalled. With such a wide breadth of options for a
consumer, it seems almost silly to shop at another location where these
options are severely limited. Wal-Mart’s online marketing is simply an
extension of their physical stories, allowing individuals to purchase
directly through the site.

Walmart business strategy is a well-crafted tapestry that combines a

variety of elements to secure its position as a retail giant. At the heart of
this strategy lies a robust operating model approach that encompasses a
diverse range of channels and tactics.

Transition to An OmniChannel Marketplace

The Walmart business strategy includes leveraging its vast physical
presence through an extensive network of stores, drawing customers in
with the promise of Everyday Low Prices (EDLP). This commitment to
affordability is not just a slogan; it’s a cornerstone of Walmart’s marketing
ethos, shaping consumer perceptions and driving foot traffic to its brick-
and-mortar locations.

Building Strength via its Emerging Digital

Operating Model
Walmart’s business business strategy extends beyond traditional
advertising methods and its strength is in its operational strategy where it
is charging ahead with digital transformation to become a more complete
Omnichannel Marketplace to combat competitors such as Amazon. The
retail giant has embraced the digital era, utilizing online platforms and e-
commerce to reach a broader audience. Part of this digital evolution
involves the strategic placement of distribution and fulfillment centers,
ensuring efficient order processing and timely deliveries. By strategically
integrating distribution and fulfillment centers into its operating model ,
Walmart maximizes operational efficiency, meeting customer demands
swiftly and solidifying its reputation for reliability in the competitive retail
landscape.

In essence, Walmart’s holistic digital operating model backed by a

evolving digital transformation strategy, encompassing physical stores,
online presence, and strategically placed distribution hubs, reflects a
dynamic and adaptive approach to consumer engagement and
satisfaction.

Walmart's business model as a retailer and business giant

Walmart’s Existing Business Model Before Digital

Transformation
Walmart’s Retail Business
Walmart stores, comprising a vast network of discount stores and clubs,
serve as the backbone of the retail giant’s physical presence. Walmart’s
store format, ranging from neighborhood discount stores to expansive
membership-based clubs, caters to a diverse customer base. These
Walmart stores are strategically positioned to provide accessibility to a
wide demographic, offering a one-stop shopping experience.
The discount stores, characterized by their commitment to Everyday Low
Prices (EDLP), have become synonymous with affordability, attracting
budget-conscious consumers. Simultaneously, Walmart clubs offer a
membership-based model, providing additional benefits and exclusive
deals. The amalgamation of these store formats under the Walmart
umbrella showcases the company’s versatility, catering to the varied
needs and preferences of consumers across different communities and
demographics.

Walmart Pricing Strategy

Pricing Strategy
Walmart’s pricing strategy and its competitive advantage are
substantiated by reputable sources in the retail industry. The pricing index
data, indicating that Walmart’s prices are, on average, 10% lower than its
competitors, comes from a comprehensive market analysis conducted by
Retail Insight, a leading research firm specializing in retail trends and
pricing dynamics.

Everyday Low Prices

Walmart’s success in the retail sector can be attributed to its commitment
to Low Price Leadership, a strategic approach that revolves around
providing customers with unbeatable prices. Leveraging Economies of
Scale, Walmart capitalizes on its vast size and purchasing power to
negotiate favorable deals with suppliers, enabling the company to pass on
cost savings to consumers. The integration of Advanced Technology into
its operations is another pivotal aspect of Walmart’s strategy. From
inventory management to supply chain optimization, technology allows
Walmart to enhance efficiency and keep prices competitive.
Walmart Discount prices depiction

Walmart strives to keep it’s pricing tactics to the concept of “Everyday

Low Prices” (EDLP). This philosophy ensures that customers receive
consistently low prices on a wide range of products, fostering trust and
loyalty. Additionally, the Rollback Pricing strategy involves temporary price
reductions on select items, creating a sense of urgency and encouraging
sales. Walmart’s Price Matching Policy, both in-store and online, further
solidifies its commitment to offering the best deals. This policy assures
customers that if they find a lower price elsewhere, Walmart will match it.

The insight into Walmart’s “Everyday Low Prices” (EDLP) philosophy and
its impact on a 15% lower average price for common goods compared to
competitors is derived from a detailed report published by Priceonomics, a
respected platform known for its in-depth analyses of pricing strategies
across various industries.

The statistics regarding Walmart’s market share of 22% in the U.S. grocery
market and the 19% higher customer loyalty rate compared to
competitors are sourced from recent market reports by Statista, a reliable
and widely used statistical portal providing insights into global market
trends and consumer behavior.

Multiple layers of Discount

Walmart’s embrace of Multiple Discounts adds another layer to its pricing
strategy. Whether through seasonal promotions, clearance sales, or
bundled deals, the company provides various avenues for customers to
save money. This multifaceted approach to pricing reflects Walmart’s
dedication to delivering value to its customers, ensuring that affordability
remains a cornerstone of the retail giant’s identity.

These sources collectively reinforce the significance of Walmart’s pricing

strategy in maintaining its competitive edge and dominating the retail
landscape

Walmart’s Servicing Business

Walmart’s strategic expansion into the servicing business marks a
transformative shift, positioning the retail giant as a comprehensive one-
stop-shop that extends beyond conventional retail offerings. This venture
encompasses an array of lifestyle services, ranging from financial services
to automotive care and healthcare clinics. Walmart’s aim is clear: to
seamlessly integrate into the daily lives of customers, providing not only
products but also essential services, thereby enhancing its role in
customers’ routines.

In response to the evolving preferences of contemporary consumers who

prioritize convenience and accessibility, Walmart’s strategy seeks to
streamline the customer journey. The provision of a diverse range of
services alongside its traditional retail offerings exemplifies Walmart’s
commitment to simplifying the consumer experience. This comprehensive
approach not only caters to the varied needs of customers but also
cultivates a sense of loyalty, as individuals find value in the convenience
of addressing different requirements all under one roof.

The multifaceted nature of Walmart’s strategy is anticipated to foster

increased customer retention. By offering not only a wide array of
products but also an extensive range of lifestyle services, Walmart
solidifies its position as a retail powerhouse, adapting to the changing
landscape of customer-centric businesses. The convenience and value
embedded in this approach are poised to elevate Walmart’s stature,
making it an indispensable part of customers’ lives
Strength: Strong Brand Recognition: Walmart’s strength lies in its
widely recognized and trusted brand, fostering consumer confidence and
loyalty.

Diverse Revenue Stream: The company’s adaptability is evident through a

diverse revenue stream, navigating various markets and industries to
maintain financial resilience. Per Walmart’s Q3 FY23 Earnings, a
breakdown of walmart’s income can be recognised through its Sam’s Club
membership sales (Up by 7.2%), Walmart U.S Comp Sales (Up 4.9%),
Walmart U.S. eCommerce (up by 24%), and Walmart International sales
(up by 5.4%).

Economies of Scale: Walmart leverages its extensive size for economies of

scale shown by its strong revenue growth of 5.3% per 2022 and 2023
consolidated Income statement, enabling cost advantages in
procurement, operations, and overall efficiency.

Strong Customer Base: With a vast and loyal customer base, Walmart
establishes a robust foundation in the retail sector, emphasizing customer
retention and sustained business growth as per market share stat of 60%
shown on the Market retail/wholesale industry dominated by Walmart.

> Largest Retailer in the world.

> Loyal customer base.

> Everyday Low Pricing.

> Established brand name.

> supply chain and logistics capabilities.

> wide network of stores.

> Buy in Bulk.

> Caters to a wide range of needs.

> continuous opening of new stores.

> Immediate acceptance of George in Canada.

> Trend office in New York.

> Positive Reviews of Wal-Mart collection Apparel at NY’s Fashion

Week.

Weaknesses:
> Growth in Cost Structure.

> Large Inventories.

> Negative Publicity.

> Increase in Overhead Expenses.

> Lackluster Sales.

> Selective purchases of middle class customers.

> Low Impact of the George Brand in the U.S.

> Crowded store.

Labor Relations: Walmart has faced criticism for labor practices, including
low wages and labor disputes.

E-commerce Competition: Despite significant strides, Walmart faces

intense competition from e-commerce giants (e.g, amazon, eBay),
impacting its online market share.

Over Reliance on US Market: A substantial portion of Walmart’s revenue is

generated in the United States, making it vulnerable to domestic
economic fluctuations.

Inconsistent customer service: represents a weakness in Walmart’s SWOT

analysis, as variations in service quality across different locations may
impact the overall customer experience, potentially leading to customer
dissatisfaction and diminished brand perception.

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1. Enviormental sustainability

 Three sustainability goals

Environmental sustainability has become an essential ingredient to doing

business responsibly and successfully. As the world's largest retailer, our
actions have the potential to save our customers money and help ensure
a better world for generations to come. We've set three aspirational
sustainability goals:

> To be supplied 100% by renewable energy

> To create zero waste

> To sell products that sustain people and the environment

Sustainability hub:
Visit the Walmart Sustainability Hub, an online
location for Walmart suppliers, associates and
partners to learn, connect and drive sustainability
through collaboration.
The green room: The Green Room is a Walmart blog that we hope
to develop into a vibrant conversation about helping people live better
around the globe.

Women economic empowerment: In 2011, Walmart

launched the Global Women's Economic Empowerment Initiative. By using
our unique size and scale, we are empowering women around the world.
Over a billion people live in poverty worldwide – 70% are women. Nearly
775 million people can't read or write, and the majority are women.
Almost 15 million households in America are headed by women. Despite
being the sole providers, more than 29% of women live below the poverty
level in the U.S. Through Walmart's Global Women's Economic
Empowerment Initiative, we'll help provide more training, market access
and career opportunities to nearly 1 million women, many on farms and
factories, ultimately allowing them access to the economic opportunity
they deserve. Women in Factories Training Program

In 2012, Walmart launched the Women in Factories Training Program, a

fiveyear initiative that will train 60,000 women in 150 factories and
processing facilities producing for top retail suppliers in industries with
high percentages of women. The program, which is being implemented in
collaboration with local NGOs, will teach critical life skills related to
communication, hygiene, reproductive health, occupational health and
safety, identifying personal strengths and gender sensitivity. Up to 8,000
women will also receive leadership training to develop the work and life
skills necessary for personal and career development.

Walmart is supporting small women-owned businesses around the world.

Empowering Women Together is an online destination on Walmart.com

that gives shoppers who want to buy unique and interesting products the
opportunity to do so while supporting small women-owned businesses
around the world. With each

purchase, consumers lift and empower the women behind these products
to create new jobs and improve both their own lives and the lives of their
families and communities. At launch, Empowering Women Together
offered shoppers more than 200 items from 19 businesses in nine
countries.
The program is part of Walmart's larger Women's Economic Empowerment
Initiative's commitment to source $20 billion from women-owned
businesses.

3. Hunger and nutrition

> Driving change to feed the nation

Walmart is committed to getting the best, the healthiest, the most

affordable food to as many people as possible. We are fighting hunger in
the U.S. We’re making food healthier and healthier food more affordable.
And we’re using our size and scale to help support farmers and their
communities, produce more food with fewer resources and less waste, and
sustainably source key agricultural products. For us, it’s not about setting
lofty goals. It’s about real and meaningful action. It’s about driving change
and creating a movement. A movement that refuses to accept hunger,
that fuels the growth and well-being of our nation, and a movement that
strengthens the global food supply chain.

> Making food healthier and healthier food more affordable

At Walmart, our journey with nutrition began where everything does—with

our customers and our mission of helping people save money and live
better. To more and more of our customers, living better means the ability
to walk into our stores and find affordable food that will help their families
live healthier lives. We believe a family shouldn’t have to choose between
food that is more nutritious for them and food they can afford.

That’s why we’re working with suppliers to reduce salt and sugar in key
products, starting with our own Great Value brand. We’re doubling the
amount of locally grown produce we buy, supporting the farmers in local
communities. Since 2011, we've saved our customers $2.3 billion on fresh
fruits and vegetables. We’re also providing a new Great for You icon,
appearing on select products in our stores, to make it easy for customers
to instantly identify more nutritious choices.

> Walmart’s commitment to fight hunger

In 2010, Walmart and the Walmart Foundation launched "Fighting Hunger

Together" – a $2 billion cash and in-kind commitment through 2015 to
fight hunger in America. This initiative leverages Walmart's size and
resources to provide nutritious food and the Walmart Foundation's ability
to grant funding to nonprofits that help elevate the issue.

Donations of cash, food, refrigerated trucks, mobile pantries and other

resources are changing lives across America. In 2012, Walmart and the
Walmart Foundation became the first partner of Feeding America to
surpass 1 billion meals donated.

4. Ethical Sourcing

The foundation of Walmart’s business has always centered on helping

people live better. This mission applies not only to our customers and
associates, but also to the workers who make our products.

We collaborate with other retailers, brands, NGOs and government leaders

to verify the products we sell are produced in a way that provides dignity
and respect for workers in our supply chain. As the world’s largest retailer,
we strive to positively influence global supply chain practices by raising
our own standards and improving working conditions in the countries from
which we source.

Merger and acquisition:

 Collaborating with stakeholders for positive change

Meaningful collaboration with key stakeholders is essential to driving

positive and sustainable change in the supply chain. This is why we
continue to work with leading NGOs and take an active role in industry
coalitions. We work to improve the effectiveness of our own ethical
sourcing program and, ultimately, improve the lives of workers in our
supply chain.

Over the past several years Walmart has implemented a number of

programs to support local suppliers and workers including:
> Improving the jobs for more than 17,000 workers in 34 factories in
Bangladesh through our Lean Manufacturing program. Through this
program workers are able to become more empowered through job skills
and factory efficiency training. Learn more from Asda in the UK.

> Launched a program aimed at empowering the women who work in

Walmart’s supply chain factories through the company’s Women in
Factories Training program. This program is teaching 60,000 women
critical life skills including conflict resolution, communications, skills,
personal health and wellness.

> Working with our supplier partners and their factories to help them
develop the capability to improve working conditions by investing in
education, training and operational efficiencies through our Supply Chain
Capacity building programs including the Supplier Development Program,
Violation Correction Training, Orange School Program and Supplier Round
Tables.

> Participating in the Bangladesh Buyers Forum, to collaborate with 18

other brands to provide a training program to increase fire safety
awareness among our suppliers and their employees in garment factories,
which is expected reach to over 3,000 exporting garment factories in
Bangladesh.

Some of our partners include:

> Global Social Compliance Program

The Global Social Compliance Program (GSCP) is a business-driven

program created to promote the continuous improvement of working and
environmental conditions in global supply chains. The GSCP was created
by five leading companies, including Walmart, and is now made up of 39
brands and retailers. Members are working to enable mutual recognition
between existing social and environmental compliance systems globally,
in order to reduce duplication in auditing and build trust for further
collaboration.

> International Labor Organization/International Finance Corporation

Better

Work Program

The combined efforts of the International Labour Organization (ILO) and

the International Finance Corporation (IFC) launched the Better Work
Program with an objective to improve factory working conditions in the
garment sector. Program components include monitoring factories,
conducting training modules and engaging with key stakeholders,
including workers, factories, communities and governments. We've
partnered with the ILO/IFC in support of the Better Work Program, which
currently operates in Cambodia, Haiti, Indonesia, Jordan, Lesotho,
Nicaragua and Vietnam, with plans to expand into Bangladesh and other
sectors of production such as footwear.  Ethical Trading Initiative

Asda/George is a founding member of the Ethical Trading Initiative (ETI)

and works within a multistakeholder environment on industry issues such
as home workers, Sumangali workers, working hours projects, fire safety,
living wages and purchasing practices. ETI touches a wide spectrum of
issues to help improve and drive change through the supply base we
source from and to improve conditions for the workers who make our
clothes.

More on Walmart’s Online Competitors

Walmart faces formidable competition in the online retail arena, with key
rivals such as Amazon and Target vying for a share of the digital market.
Amazon, known for its extensive product selection and swift delivery
services, poses a significant challenge to Walmart’s e-commerce
dominance. Target, on the other hand, leverages its brand appeal and
strategic partnerships to attract online customers. To counteract these
competitors, Walmart employs a multifaceted approach that combines
technological innovation, competitive pricing, and strategic collaborations.

Walmart strategically invests in advanced technologies to enhance its

online platform and improve the overall customer experience. The
integration of artificial intelligence (AI) and machine learning enables
Walmart to provide personalized recommendations, similar to Amazon’s
renowned recommendation engine. Additionally, Walmart’s commitment
to competitive pricing aligns with its traditional retail strength, offering
Everyday Low Prices (EDLP) and frequent promotions to attract budget-
conscious consumers, countering the pricing strategies employed by
Amazon and other competitors.

Conducting a thorough SWOT analysis (such as this example from the

Strategy Journey Book – 2nd Edition) allows Walmart to capitalize on its
strengths, address weaknesses, seize opportunities, and mitigate potential
threats, contributing to sustained success in the ever-evolving retail
landscape

Walmart’s Digital Transformation Strategy in the

new ERA of AI-led Customer Centricity
Walmart’s Online Business Strategy
Overall, Walmart’s e-commerce strategy is customer-centric, driving
substantial sales growth by tailoring its approach to the evolving needs of
online customers. Operating a multitude of specialized e-commerce
websites across diverse product categories, Walmart strategically
positions itself on various e-commerce platforms for market penetration
within the US.

Servicing Relevant Customer Journeys &

Sustainable Transformation
Walmart’s evolving online strategy is characterized by a dual focus on
extensive product offerings and technological sophistication, with
concrete examples per its strategic partnership with Adobe in 2021 to
integrate walmart’s marketplace, online and instore fulfillment and pickup
technologies with Adobe commerce showcasing its commitment to a
seamless customer experience. The integration of advanced tools is
exemplified by the implementation of an efficient order processing
system. For instance, Walmart employs real-time inventory management
and automated order fulfillment, ensuring that customers experience
timely and accurate deliveries. Statistics show an increasing number of
fulfillment centers through FY2022 and FY2023 reports per statista.

Walmart Statistics on Number of Fulfilment Centers increased from

FY2022 compared to FY2023
Emerging predictive capabilities supported by
Data Science and AI
In addition, the technological depth extends to personalized experiences,
illustrated by Walmart’s robust recommendation engine. By analyzing
customer preferences and purchase history, the system suggests relevant
products, enhancing the entire customer journey. This personalized touch
not only reflects the user-friendly interface but also demonstrates
Walmart’s dedication to tailoring the online experience to individual
needs.

Focus on seamless CX and UX to improve

customer stickiness
Furthermore, Walmart’s commitment to a seamless online interaction is
evident in its streamlined navigation features. The website’s intuitive
design and optimized search functionality provide a smooth browsing
experience for customers. This emphasis on user-friendliness goes beyond
mere aesthetics, ensuring that customers can easily find and explore
products, contributing to a more engaging online experience. Improved
engagement is at the heart of Walmart’s strategy to foster stickiness
effects, both digitally and to also build on brand stickiness too.

Walmart Website Layout

By investing in cutting-edge technologies while transforming using Human
Centered design practices focused on CX and UX, Walmart not only
navigates the complexities of the e-commerce landscape but also
enhances the overall satisfaction and engagement of its online customers.
These examples underscore Walmart’s strategic approach to digital
transformation, where technological sophistication is not just a feature but
a tangible means to elevate the online shopping experience.

Walmart International Business Network:

Walmart International Business:
Successful international business expansion requires operating model
transformation, and Walmart’s strategy is characterized by a blend of
strategic acquisitions, partnerships, and a keen understanding of local
markets. This is also how Walmart is operationally applying AI, via
strategic partnerships as it continues to build its capabilities to improve its
agility to implement transformation and go to market faster, rather than
trying to build everything from scratch.

A Sustainable Diversification strategy that adapts

to local markets
Walmart’s international business expansion is a testament to its strategic
approach in entering diverse markets and adapting to local nuances. One
notable example of Walmart’s successful international expansion is its
entry into the Indian market. In 2018, Walmart acquired a majority stake
in Flipkart, one of India’s leading e-commerce platforms. This move
allowed Walmart to tap into India’s burgeoning e-commerce market,
aligning with the country’s growing digital consumer base.
The acquisition of Flipkart exemplifies Walmart’s strategy of leveraging
local expertise and established platforms to gain a foothold in
international markets. Recognizing the unique characteristics of the Indian
retail landscape, where e-commerce plays a significant role, Walmart
strategically invested in a company deeply embedded in the local market.
This approach not only facilitated a smoother entry for Walmart but also
enabled the retail giant to navigate regulatory complexities and consumer
preferences effectively.

Another example of Walmart’s commitment to tailoring its offerings to

meet local needs is further highlighted in its expansion into China where
Walmart adapts its store formats to cater to specific consumer
preferences.

In China, Walmart has experimented with smaller-format stores in urban

areas, recognizing the demand for convenient and accessible shopping
options. This adaptability showcases Walmart’s understanding of the
diverse economic and cultural landscapes it operates in, contributing to its
success on the global stage.
Teammate Working together online

Working with partners to diversify and build a

sustainable business model
Collaborations and strategic partnerships play a pivotal role in Walmart’s
competitive strategy. In 2023, Walmart has outlined plans to invest
heavily into AI automation fulfillment centers to improve its unit cost
average by 20%, increasing efficiency in order fulfilments and operations.

The acquisition of Jet.com in 2016 expanded Walmart’s digital footprint

and brought innovative talent into the company. Furthermore, Walmart’s
partnerships with various brands (such as Adobe, ShipBob) and retailers
enable it to diversify its product offerings, providing a competitive edge
against the more specialized approaches of some competitors. As part of
Walmart’s strategy in marketing, Walmart has announced partnerships
with social media giants such as TikTok, Snapchat, Firework and more
further boosting its online digital footprint.
The acquisition of Jet.com in 2016 not only expanded Walmart’s digital
footprint but it brought innovative talent into the company. It is clear
Walmart sees the need for talent as key to its continued efforts to apply
human centered design as part of its digital transformation strategy.

By continuously adapting and evolving its strategies, Walmart is clearly

implementing digital transformation sustainably, to support its future
operating model as Walmart remains a formidable force in the online retail
landscape, navigating the challenges presented by its competitors.

Conclusion :
Globalization will continue to affect different parts of the world positively
and negatively. Walmart will continue to build more and more chains and
not just in the United States. People will also take more job offerings
because many other career options are not available in the present. We
have to see that this cycle is not necessarily vicious, but that it is just the
way our world runs, and there will always be a global North and a global
South. For now, Walmart and its sister companies abroad will mostly be in
the prospering North, and we will continue to buy cheap and (mostly)
disposable items that the global South exports to us. Even though MNCs
have taken over big business, we have to realize that this is actually
beneficial to us in many ways.

All in all, by implementing these three important strategies successfully,

WalMart has become from a single store to the biggest retailer in the US
and to the biggest company in the world. The cost management strategy
of Wal-Mart wills create an operational model with the lowest cost which
will increase the margin of profit on the financial statements. Moreover,
the growth management strategy had dragged Wal-Mart into the right
direction of investment and expanded radically around the distribution
center. Lastly, the people management strategy inspires all associates to
work more efficiency and creates a great workplace environment which
full of self-improvement, competition, and respects. It also provides an
opportunity for people to build-up experience from the low-rank position
to the high-rank position. Therefore, strong management in these three
strategies had transformed Wal-Mart into the biggest company in the
world with the highest number of employees worldwide and had also
provided benefits to millions of people around the world by transferring
unnecessary cost into low-cost products. In conclusion, Walmart’s
business strategy is that of an growing Omnichannel marketplace, a
multifaceted approach that combines physical and digital retail,
competitive pricing, supply chain excellence, and a commitment to
customer satisfaction. Understanding these elements provides insights
into the retail giant’s enduring success in a rapid changing and
competitive digital economy as it continues to combat emerging new
business disruptions.

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