Case Study

The Evolution of Walmart’s Strategy

How has Walmart’s strategy evolved to fit its situation in the discount-store industry?

Answer: Walmart has evolved with providing its customers new experiences by introducing new approaches and technologies to the retail business. They have grown nationwide and internationally to increase its customer base and be able to provide discount prices. In the 1980s, Walmart opened its first Sam’s Club with a main purpose to serve small business. It also offered individuals a discounted price. Walmart also opened its first Supercenter that combines a supermarket with general merchandise that offered a mix of services under the same roof. So Walmart has strategically grown enormously to have an increased number of customers to be able to fit its situation in the discount-store industry.  

How has Walmart’s strategy evolved to strengthen its competitive advantage in discount retailing?

Answer: Sam Walton, the founder of Walmart recognized the efforts of his associates in the success of Walmart. Sam made Walmart associates as his partners and was a firm believer that it would bring glory to the Walmart. Making an associate as a partner was unheard of in the retail industry and it literally transformed Walmart from just a store to a Walmart Family.

Walmart not just expanded its business, it also served the communities by offering social services through Walmart Foundation. In 2010, Walmart committed $2 billion by the end of 2015 to help end hunger in the United States. Their seriousness to corporate social responsibility has provide them with a competitive edge over its competitors.   

• Has Walmart’s evolving strategy produced good company performance over the long run?

Looking at the history timeline of the company, I believe that Walmart has succeeded in providing good company performance over the long run. In 2009, Walmart exceeded 400 Billion annual sale. The company has been serving its customers for over 50 years. It employs 2.2 million associates in 27 countries. Its customer base has grown over the time and at present 200 million customers visits Walmart at its 11,000 worldwide stores.