Wal-Mart's Business Model Essay

Wal-Mart's Business Model Essay

Length: 1036 words (3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

One of the largest supply chains currently in the world is Wal-Mart. They are growing by leap and bounds, steadily increasing sales, meeting customer demands while viewed publicly as one of the low-cost pioneers. This feat was not done by simply opening the doors and inviting consumers into one of its 11,000 locations worldwide. Wal-Mart offers more than 140,000 thousands stock-keeping units (SKU) products on its shelf. This happens through a creative vision, with many partnerships that combined to form an enormous conglomerate.
Business Model
Wal-Mart business model hinges on a simply notion, to provide product and service to customers when and where they want them. This way of thinking defines the company as an innovator, searching for ways that will not only perpetuate their firm grasp on the retail industry, but also provide their consumers with low-cost options for products and supplies. The Wal-Marts supply chain is a global dynasty, it is known for being effective and efficient, technologically advanced, and logistically sound. These principles are some of the reasons Wal-mart is regarded as the top supply chain in the retail industry. They have distribution center located in a multitude of countries, this practice lends itself to have their products closer to the consumers, which allows the warehouse center to turn its total inventories over 8 times per year (Saporito, 2013). The supply chain is very successful at ensuring the lines of communication work properly throughout the entire network. Having suppliers that understand and communicate throughout each segment chain and share data are strategies Wal-Mart uses to manage its chain. To achieve this, Wal-Mart has its inventory replenishment at the center o...

... middle of paper ...

...'s inventory levels. Retrieved from http://www.inventorymanagementreview.org/2006/04/walmart_increas.html
Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.
Diermeier, D. (2011). Case study: Walmart. FT.Com, Retrieved from http://search.proquest.com.library.capella.edu/docview/858311761?accountid=27965
Saporito, B. (2013, April 9). The trouble lurking on walmart’s empty shelves. Retrieved from http://business.time.com/2013/04/09/the-trouble-lurking-on-walmarts-empty-shelves/
Sethi , S. (2013, May 8). The world of wal-mart. Retrieved from http://www.carnegiecouncil.org/publications/ethics_online/0081
University of San Francisco. (2014). Walmart’s keys to successful supply chain management. Retrieved from http://www.usanfranonline.com/wal-mart-successful-supply-chain-management/

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Wal Mart 's Business Optimization Model Essay

- Student’s Name: Professor’s Name: Course Code: Date: SCM 4385: Optimization Tools Wal-Mart’s Background The retail industry is one of the most promising industries, as more retailers continue venturing into the global market. According to Blanchard, Comm, and Mathaisel, Wal-Mart is the largest retailer in the world as a result of its efficient supply chain (166). Wal-Mart deals with groceries, apparel, and music among other retailer goods. Since Wal-Mart is a giant retailer, it deals with products manufactured or processed by other business....   [tags: Retailing, Supply chain management, Supply chain]

Better Essays
1717 words (4.9 pages)

Business Model Analysis of Wal Mart and Sears Essays

- Business Model Analysis of Wal Mart and Sears While both companies belong to the retail industry (where sales of products and services are the source of business), Sears and Wal-Mart have very different business models. Making an analysis of the profitability of the shareholder can be seen that although both companies have similar returns, the source of this return is different. As shown in the table above, both companies have returns on capital near 20%, although the source of profitability differs among them....   [tags: Business Analysis Strategy Compare]

Free Essays
1962 words (5.6 pages)

Wal Mart 's Policies And Actions Essay

- Wal-Mart’s Policies and Actions are damaging to a Small Town 's Economy Introduction In the United States and all over the world, the entry and operations of big retailers like Wal-Mart into a small town sparks great controversy within the community. The fact that people contemplate on the fact that the policies and actions of Wal-Mart are destructive to a small town’s economy is not new. Most small town’s economies are run by subsistence and self-reliant traders. With time, the traders embrace the division of labor and specialization of skills in accordance with the trade, production and manufacturing needs of the community....   [tags: Supermarket, Retailing, Wal-Mart, Economics]

Better Essays
1199 words (3.4 pages)

Costco Is A Biggest Warehouse Club Business Model Essay

- Costco has its first store opened in Seattle in 1983, and now there are 457 stores all around the world, many of them are in United States, the rest has been separated other countries like Canada, Britain, South Korea, Taiwan, Japan, Mexico, Australia and etc. Costco has outperformed many other competitors in the industry for many reasons: • From sales point, for example, from chart 3, we can tell that Costco has been generating more and rapid revenues compared to Target and Wal-Mart from 2006 to 2014, and the revenue percentage change has been more obvious in recent years....   [tags: Costco, Sam's Club, Wal-Mart, James Sinegal]

Better Essays
1405 words (4 pages)

Analysis of Wal-Mart in Japan Essay

- Executive Summary The case study focuses on the hurdles and strategic failures that Wal-Mart faced during its expansion and entry into Japan and its hugely attractive Retail Market. The study throws light on the rise of the world’s major Retailers “Wal-Mart”. In course of their expansion with the time they benefitted from success as well as disastrous results in their journey to “Go Global” Wal-Mart got in to Japan’s smart retail market as a joint venture with “Seiyu” which was a very mistaken step at first....   [tags: Wal-Mart in Japan Case Study]

Better Essays
1358 words (3.9 pages)

Wal Mart : Company Overview Essay

- Introduction – Company Overview Wal-Mart is the largest global retailer in U.S. and also one of the biggest multinational companies of any kind in the world. It is a well-known American company offers its products through various retail formats that include: supercenters, supermarkets, hypermarkets, warehouse clubs, cash & carry, home improvement, specialty electronics, restaurants, apparel stores, drug stores, and convenience stores, as well as digital retail. The company relies heavily on their Every Day Low Price (EDLP) strategy which seeks to provide consumers with the lowest prices on many common goods....   [tags: Wal-Mart, Supermarket, Revenue, Hypermarket]

Better Essays
707 words (2 pages)

The Marketing Model Of Wal Mart Essay

- • Seeing the success of Trader Joe’s, many competitors are trying to imitate their business model. Wal-Mart started their Neighborhood Markets on 1998 storing only grocery and pharmacy item. In 2011, Wal-Mart started Wal-Mart Express, an even smaller version of the original supermarket and rapidly growing. This year, Fresh City Market started operating in Purdue University, Indiana focusing on fresh food. The small size grocery segment is growing and there are already multiple players in the market to take a chunk of that....   [tags: Grocery store, Supermarket, Brand, Safeway Inc.]

Better Essays
1366 words (3.9 pages)

Essay on Wal Mart 's Expansion Strategy

- Walton grew up in a rural area in the United States. He tried lots of things such as running variety stores before founding Walmart. Walton believed that discount stores could succeed in smaller markets based on the success of many Ben Franklin stores which were located in smaller markets. From the beginning, Walmart focused on small-towns, in rural or suburban areas. In 1962, Walton started his first Walmart store in the small town of Rogers, Arkansas. Then, Walmart grew up by following Walton’s expansion strategy in which new stores should be adjacent to existing Walmart markets and distribution lines....   [tags: Wal-Mart, Hypermarket, Variety store]

Better Essays
929 words (2.7 pages)

Essay on Wal-Mart Business Ethics

- Wal-Mart is currently eradicating some of its negative images by going green, keeping prices continuously low, contributing to disaster relief, community service and a health enticement for Americans to lose weight. Research shows that Wal-Mart believes that by making these changes now, it would help them come closer to the company’s main objectives of respecting the individual, servicing the customers with superior and excellent customer service. Wal-Mart also wants and has the expectations of its suppliers to adhere to these beliefs in their contracting, subcontracting, and other business relationships....   [tags: eradicating some ot its negative images]

Free Essays
567 words (1.6 pages)

Wal-Mart Essay

- The founder of the Wal-Mart chain, Sam Walton was born in March 1918 in the town of Kingfisher, Oklahoma. Graduating from the University of Missouri, Sam enlisted in the Army for the World War II effort. Upon his return, Sam worked for a while at the J.C. Penney group of stores. He began to realize that opportunities existed in the large scale discount retailing business (nickel and dime stores). The idea and business philosophy of Wal-Mart borrowed from the nickel and dime stores of earlier times, and consisted of getting National Brands in bulk at a discount based on volume purchases; the company would then stamp its mark and resell the goods at a slight markup, this rate being however les...   [tags: Business Analysis Wal Mart]

Better Essays
1552 words (4.4 pages)