Analyzing Walmart’s Business Strategy: Tactics and Impact

In recent years, Walmart has emerged as a dominant player in the retail market, with its business strategy attracting significant attention and scrutiny from industry analysts and experts. From its low-cost pricing to its focus on e-commerce and innovation, Walmart’s approach has helped it become one of the most successful companies in the world. In this article, we will analyze Walmart’s business strategy, tactics, and the impact it has had on the retail market.

1. Focus on Cost Leadership
Walmart’s cost leadership strategy is one of the reasons for its success. The company has invested heavily in its supply chain management, creating a highly efficient system that enables it to keep prices low. As a result, Walmart can offer its products at prices that are usually lower than its competitors. This strategy allows Walmart to attract more customers who are looking for value for their money.

2. E-commerce Focus
Walmart recognized the importance of e-commerce early on and has made significant investments in its online capabilities. In 2016, the company acquired Jet.com, an e-commerce platform, to strengthen its online presence. Walmart’s focus on e-commerce has helped it stay competitive with online retailers like Amazon. The company has also introduced initiatives like free two-day shipping, grocery delivery, and in-store pickup to make online shopping more accessible and convenient.

3. Innovation
Walmart has a strong focus on innovation, particularly when it comes to technology. The company has introduced various initiatives to enhance the customer experience, such as the use of robots to clean floors and restock shelves. In 2020, Walmart launched Walmart+, a subscription service that offers free delivery and discounts on gas at participating gas stations. Walmart’s innovation strategy has helped it stay ahead of the competition and remain relevant to customers.

4. Impact on the Retail Market
Walmart’s business strategy has had a significant impact on the retail market. The company’s focus on low prices has led other retailers to adopt similar pricing strategies to stay competitive. Walmart’s e-commerce initiatives have helped it compete with Amazon, which has dominated the online retail market for years. In addition, Walmart’s investment in innovation has forced other retailers to adapt to changing customer demands.

In conclusion, Walmart’s business strategy has been successful because of its cost leadership approach, e-commerce focus, and innovation strategy. The company has had a significant impact on the retail market, pushing other retailers to adopt similar strategies to stay competitive. As Walmart continues to invest in technology, supply chain management, and other initiatives, it is likely to maintain its position as a dominant player in the retail industry.