Walmart’s Business Strategy

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The Wal-Mart market is slightly larger than the average supermarket. Each family occupies an average of 45,000 square feet. It has a full range of goods to be sold. The items needed for a family can be bought here, also known as “family shopping.” From clothing, cloth, medicines, toys, all kinds of daily necessities, household appliances, jewelry and cosmetics, to auto parts, small yachts, etc., everything is available. The merchandise display is clean and neat. When people who first arrive in the United States go to the supermarket, they often cannot figure out where the things they need are placed. The logo of the Wall market is very clear, so that you will not get lost in such a large plane. A closer look, the same brand of goods, is cheap in this store. In the Wall market, most of them are produced in the United States, which can both provoke patriotism and a symbol of high quality. Customers in the Wall market include the middle class and the low-income class, which make up the majority of the US population. Customers are not satisfied with any items purchased at the Wall Market and can return the store to return the full payment within one month. All major supermarket chains adopt a low-cost business strategy. What makes Wal-Mart unique is that it has tried every means to save money from purchase channels, distribution methods, marketing expenses, administrative expenses, etc., and put forward “everyday parity, always As a slogan, and strive to achieve a cheaper price than other firms. Rigorous purchasing attitude, perfect delivery system and advanced inventory management are the key factors that enable Wal-Mart to achieve the lowest cost and the lowest price. Its founder Walton once said, We value the value of every penny, because one of the purposes of our service is to save money for every customer who goes shopping. Whenever we save a dollar, we win. A customer’s trust.” To this end, he asked every purchaser to be firm in purchasing goods. He warned: “You are not bargaining for the store, but bargaining for the customer, we should get the best price for the customer.

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Communicate and speed information feedback to improve the efficiency of the entire company. The high-speed computer at the headquarters is connected to 16 delivery centers and more than 1,000 stores. Every item sold through the store’s payment desk laser scanner is automatically credited to the computer. When a certain inventory of goods is reduced to a certain amount, the computer will send a signal to remind the store to request the goods to the headquarters in time. After the headquarters arranges the source of supply, it is sent to the nearest delivery center from the store, and then the computer and the route of the delivery center arrange the time and route. The required items will appear on the shelves of the warehouse within 36 hours of the order placed by the store. This high-efficiency inventory management enables the company to quickly grasp the sales situation and market demand trends, and timely replenish insufficient stocks. This can reduce inventory risk, reduce the amount of capital backlog, and speed up the operation of funds. Wal-Mart also adopts warehouse-style operations, which more fully reflects the economies of scale in terms of the cost of goods sold. For example: Sam’s member store is decorated in a simple way, try to use all the shelf space to store and display goods. The price is not marked on each item, but is uniformly marked on the shelf. As long as the bar code of the product is scanned, the cash register will accurately collect the price. Most of the goods are sold in large packages to reduce the cost of individual packaging. With the continuous improvement of China’s productivity level and the increasing purchasing power of consumers, many cities have the conditions to implement this model. Merchants gradually realized the advantages of the warehouse-based business model, and began some attempts, similar to the wide-ranging warehouse stores of Guangkelong. At present, the most critical issue is to learn from the experience of successful foreign companies (such as Wal-Mart), to achieve the lowest cost and achieve economies of scale more comprehensively and thoroughly.

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Walmart's business strategy. (2019, Dec 04). Retrieved October 3, 2022 , from
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