Executive Summary

The case discuss about the Retail outlets of Wal-Mart, the pricing strategy of products, the
online presence, international operations, and market share and also about the competitors.
Wal-Mart remained the largest company in the world, with total annual revenues of over
$485 billion. It employed 2.3 million people, making it the largest private employer in the
world. With nearly 11,700 stores in 28 countries, it served approximately 260 million
customers each week worldwide.1 While its core remained discount merchandise and
groceries, it had expanded aggressively into e-commerce. By 2016, Wal-Mart had become
the second-largest online retailer in the United States behind Amazon and had rolled out a
propriety mobile payments system called Walmart Pay.

Problem Statement

Wal-Mart faced significant challenges. Although it had weathered the recession of 2007–
2009 better than many of its rivals, it had found it difficult to return to the double-digit
growth rates that had characterized its history. The company closed 269 stores worldwide in
2016, including 154 in the U.S. and 115 abroad, primarily in Latin America. Not able to
create much sales in e commerce. There is a major problem in approaching to labour relations
The company had major competitors in all areas- in online ( Amazon), in warehouse
segment(Costco), in retail store ( target company).The growth of its biggest online competitor
amazon have increased rapidly from 2015. Market share price was not at all increasing. The
massive offers gave by amazon threatens Wal-Mart

Alternatives

Wal-Mart also operated Sam’s Club, a members-only warehouse store allowing members to
buy bulk quantities of items for steep discounts. It opened its first Sam’s Club in 1983 and by
late 2016 operated 656 Sam’s Club stores, which averaged about 134,000 square feet. Wal-
Mart had experimented with several smaller-format stores, in an effort to reach urban areas.
In 1998, it launched a new format called Neighborhood Markets, which specialized in
groceries and pharmacy items and occupied a much smaller footprint, averaging 42,000
square feet. In 2011, Wal-Mart launched a new format called Walmart Express, which were
small stores of 15,000 square feet or less, located in urban areas and designed to compete
with convenience stores and dollar stores.
Criteria

Looking on gaining profit or loss by having an evaluation on all different stores.

Evaluation of alternatives against criteria

Recommended solution

Wal-Mart had emphasized “everyday low prices,” a commitment to offering consistently low
prices on all merchandise, rather than deploying sales and promotions on select items.
Maintaining low prices depended on using Wal-Mart’s operational prowess, scale, and
buying power to contain costs. Its low-price strategy was still in place in early 2017; price
leadership remained “core to who we are” in the words of the firm’s 2016 annual report.5

Contingency plan

Having neighbourhood stores in different parts of the world.

My learnings

Walmart remains the biggest company in retailing sector and in ecommerce it acquire second
position in ecommerce behind Amazon.