Walmart attracted many e-commerce businesses attracting higher-income customers such

Walmart business strategy always based on the company philosophy “everyday low prices”. Walmart follow a cost leadership business strategy enabled by economies of scale derived from the organization to a considerable extent. Doug Stephens, a retail consultant, said retailers had previously focused on developing their brands and making Walmart’s name grow.

Now, Walmart is transforming its strategy. The company is building an ecommerce system to accommodate many of the recent acquisition brands that will largely maintain their independence from Walmart.

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The effective use of ecommerce channels contributes to the cost-effectiveness of retail operations and about 75% sales of Walmart come from online sales, no ware house cost no space cost. Company continue improvements in categories, pricing and access are the basis of Walmart’s business strategy. In a nutshell, Walmart struggle to provide the widest selection of goods at the lowest price and giving customers the easiest way to buy products.

Walmart recently signed an agreement to provide high-end store chain Lord & Taylor on its website. It has also attracted many e-commerce businesses attracting higher-income customers such as Jet, Shoebuy, MooseJaw, Shoebuy, ModCloth, Bonobos and Hayneedle.

As a CEO, Doug McMillion offer a lot of strategy to improve Walmart business strategy, and it following this three directions:

·        Always increased focus on customer service: In February 2015, the company announced a $ 1 billion investment in US hourly companies to provide higher salaries, professional training.

·        Improving products quality: Nowadays consumer become more and more caring about their health. Walmart is trying their best to keep their consumer health save by improve Walmart foods and health products.

·        Enhancing the versatility of the consumer shopping experience: Walmart is working to integrate their traditional store with digital business. Example, consumer can orders online then go to store check and collect their orders.


1.     Walmart Marketing Strategy

Pricing strategy

Walmart become the largest retail company in the world by low prices strategy with a big scale at minimum cost. They never change that strategy, the success of Walmart make them keeping develop it. And with their power gained form “everyday low prices” they try their best to provide lower prices at larger scale for consumer.

In addition, the competition of Walmart with competitors such as Amazon, Target, … also make commodity prices become cheaper with higher quality.


Manage supply chain

Walmart have one of the greatest supply chain with best logistics and operational triumphs. According to Supply Chain Digest, at any time Walmart operates more than 11,000 stores in 27`countries around the world and always manages about $32 billion`in inventory. These number show that Walmart running their supply chain really good.

Walmart earned $ 476 billion in January 2014, up from $ 408 billion in 2010, according to the Wall Street Journal. This income has been generated by 4,100 stores and is provided by a scattered supply chain, Walmart has maintained a position among Gartner’s top 20 supply chains since 2010. In particular, Gartner called Walmart a ” perennial supply chain powerhouse” and`said the company`that the National Retail Federation`was ranked as the`world’s leading retailer in 2014 based`on global sales`had ” collaborative vendor process “supported by technology. Walmart, using its vast purchasing power to shape supplier behavior, it help reduces costs, Gartner said. The evolution of Walmart’s supply chain is comprised of three elements: distribution activities, truck fleet operations, and technology. Walmart have a huge network with about 160 distribution center. Nearly 81% Walmart product passed through those distribution center. Walmart have their own trucking fleet and drivers. And Walmart also using high technology system like EDI ( Electrocnic Data Interchange) to help procurement manage more efficient.

Walmart’s overall approach to supply chain management does not differ much from the major components: procurement, operation, distribution and integration. But Walmart has research and develop some new method. Their supply chains start with purchasing managers deciding what products to sell, finding suppliers and arranging contracts for the product. The operational part of a supply chain focuses on planning,/forecasting and inventory/management. Forecasts estimate consumer demand based on data, external drivers such as sales and promotions, and trends or competition changes. Demand planning is used to generate accurate forecasts, an important step for efficient inventory management. Forecasts are for compared with stock levels to ensure inventory has enough goods, but not too much, inventory to meet demand.


Walmart supply chain integration connects workflow and information between all the links in the supply chain to maximize efficiency.