Walmart’s Integration Strategy

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WAL-MART from its inception was formed on the basis of fierce competing retail store, strategy of being ahead in industry was incorporated by the Sam Walton the founder of Wal-Mart, he never worried about being right or wrong but being winning in retail industry, by delivery best possible lowest prices that no one can attend in industry (Perell, 2018). For doing that Wal-Mart needed to be aggressive in its strategy to attain the best possible prices that was the key for its success, Wal-Mart took aggressive integration initiatives, to maintain its strong hold in market through horizontal integration at large. Strategy of single business Supply chain management, to achieve competitive advantage and attain growth through value creation initiatives, Wal-Mart applied focus on global discount retailing (Hill & Jones, 2012). Selection of horizontal strategy was a well thought-out process in Wal-Mart’s business strategy, because if same is successfully implemented, it may have positive impact on bottom-line because of reduction in cost due to replication of commercial activities. Wal-Mart via its discounted prices through low cost retail business model entered aggressively into the supermarkets and warehouse segment not only in US but also replicated same business model across world quite successfully by taking over the supermarkets across the world.

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In pursuance of its aggressive integration strategy, Wal-Mart has acquired 18 companies in last 22 years (Crunchbase, 2018). It’s witnessed from the record that traditionally Wal-Mart’s focus was on traditional physical super stores therefore previously all acquired organizations demonstrate that, but since 2016, after rise of Amazon one of the strong competitor, with its strong hold on ecommerce which deliver products to customers at their convenience. Wal-Mart has adjusted its integration strategy from physical supper stores to ecommerce platforms, in that regard Wal-Mart’s recent acquisitions includes, online retailor Jet.com at $3.3 billion, Flipkart at $16 billion online shopping retailor, shoes.com, Bare Necessities an ecommerce boutique, Moosejaw, women clothing, and Bonobos men’s clothing (Vena, 2017). Along these acquisitions, Wal-Mart is heavily investing in technology to rise up its ecommerce business and meet customers changing shopping needs, which includes grocery Pick-up Sites, Click & Collect programs, automated Kiosk providing 24 hours pick-up, to stay ahead of its upcoming competitor Amazon (TOBY, 2017).

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Walmart's Integration Strategy. (2020, Mar 23). Retrieved October 6, 2022 , from
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