Walmart's Global Retail Operations and Business Model
1.
2. Walmart, Inc. engages in retail and wholesale business. The
Company offers an assortment of merchandise and services
at everyday low prices.
It operates through the following business segments:
Walmart U.S., Walmart International, and Sam's Club.
3. Is Walmart largest retailer in the
world?
As of 2019, Walmart was by far the
world's leading retailer with retail
revenues reaching 523.96 billion U.S.
dollars. Many of the world's leading
retailers are American companies.
4. How many stores does Walmart
have 2021?
In total Walmart operated 11,847 stores.
Walmart, formerly known as Wal-Mart Stores,
Inc., is one of the most well-known and valuable
brands in the world.
Number of Walmart stores worldwide from fiscal
year 2008 to 2021.
5.
6. Bargaining power of suppliers
• + Low bargaining power of Suppliers
• + Least cost
• + High sales percentage
• + High customer reach
• - Few companies might overpower
7.
8. Threats of new entrants (STRONG)
• + Lesser threat of new entrant
• - Requires huge amount of investment
• + Economies of scale
• - Requires precise distribution system
9.
10. Intensity of Competitive Rivalry or
Competition (Strong Force)
• + Large number of firms in the retail market
(strong force)
• + Large variety of retail firms (strong force)
• + High aggressiveness of retail firms (strong
force)
• Walmart's top competitors include Kroger,
eBay, Costco, Giant Eagle, Ascena Retail
Group, Qurate Retail Group, Lowe's and
Albertsons.
11.
12. Bargaining Power of Buyers or
Customers (Weak Force)
• Many buyers +
• Price sensitivity +
• Switching Cost +/-
• Substitute +/-
13.
14. Threat of Substitutes or Substitution
(Weak Force)
• +/- Moderate to high cost of brand
development (moderate force)
• + Low cost of doing business (strong force)
• + Moderate capital costs (strong force)
15. What is Walmart called in India?
Flipkart Wholesale
• The company operates under the name
Walmart in the United States and Canada, as
Walmart de México y Centroamérica in
Mexico and Central America, and as Flipkart
Wholesale in India.
16. Is Walmart available online in India?
• Does Walmart Ship To India? No, Walmart does
not ship to India, but there is a designed a
process for getting any Walmart order shipped to
India with zero headaches.
• It involves using a package forwarder: a
warehouse in the United States that will accept
your Walmart order and forward it on to you in
India.
• https://www.yoreoyster.com/shipping/walmart-
india/
17. Walton family
Walmart's current logo since 2008
Walmart Home Office (headquarters) in 2012
Total equity US$87.53 billion (2021)
Owner Walton family (50.85%)
Walmart is the world's largest company by revenue,
with US$548.743 billion, according to the Fortune Global
500 list in 2020.
...
Editor's Notes
Walmart experiences the strong force of these external factors that define the competitive rivalry in the retail industry environment.
In Porter’s Five Forces analysis model, a large number of firms typically strengthen competition.
In relation, the high variety of firms imposes challenges in developing Walmart’s competitive advantages, considering the diversity of approaches that these competitors use. Also, higher firm aggressiveness leads to stronger competitive rivalry.
Thus, the company must remain aggressive to remain competitive.
Walmart must keep growing to remain in its position as a major global retailer.
Some substitutes to Walmart’s goods are readily available.
However, the external factor of the low variety of substitutes makes it difficult for consumers to move away from products available from retailers like Walmart.
Also, some substitutes are more expensive than the low-cost goods and services available at the company’s stores.
In Porter’s Five Forces model, the combination of these external factors lead to the weak threat of substitutes or substitution in Walmart’s industry environment.