ASSIGNMENT COVER PAGE

No. Student’s Name Student’s ID

1. Alisha Maharjan Lic-22032098
2. Rashmi Shrestha Lic-22032112

Lecturer Name :
Subject Code & Title :
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Submission Date : 25th Jan 2024

Introduction

Walmart is an American multinational retail corporation that operates a chain of hypermarkets,

discount department stores, and grocery stores. It is one of the world's largest and most
successful retailers. Here is a brief introduction to Walmart:

Founding and History:

Walmart was founded by Sam Walton in 1962 in Rogers, Arkansas, USA. The company began
as a single discount store named Walton's Five and Dime, and it quickly grew into a retail giant
through a commitment to providing low prices and great value to customers.

Business Model:

Walmart's business model revolves around offering a wide range of products at affordable prices.
The company is known for its commitment to "Everyday Low Prices" (EDLP), which aims to
provide customers with consistent low prices without the need for frequent sales or promotions.
Walmart operates a variety of store formats, including supercenters, discount stores, and
warehouse clubs.

Global Presence:

Walmart has a massive global footprint, with operations in numerous countries around the world.
The company expanded internationally in the early 1990s and has since become a major player
in the global retail market. Walmart operates under different names in various countries, such as
Asda in the United Kingdom and Seiyu in Japan.

Diverse Product Range:

Walmart offers a diverse range of products, including groceries, clothing, electronics, home
goods, and more. The company is known for its extensive product selection and one-stop
shopping experience.

E-commerce and Technology:

In recent years, Walmart has heavily invested in e-commerce and technology to stay competitive
in the digital age. The company has an online presence through its website and app, allowing
customers to shop online and choose from various delivery options.

Corporate Social Responsibility:

Walmart has been involved in various corporate social responsibility initiatives, including
sustainability efforts, community engagement, and charitable contributions. The company has
also focused on improving its supply chain practices and promoting environmentally friendly
initiatives.

Challenges and Success:

While Walmart has experienced immense success, it has also faced challenges, including
criticism related to labor practices, worker wages, and the impact of its business on local
economies. Nonetheless, the company's ability to adapt to changing market conditions and
embrace new technologies has contributed to its continued success.

Walmart's impact on the retail industry has been profound, making it a significant player in the
global business landscape.
History /background

The history of Walmart is a story of rapid expansion, innovation in retail, and the establishment
of one of the world's largest and most successful retail chains. Here is a timeline of key events in
the history of Walmart:

1962: The Beginning

Walmart was founded by Sam Walton on July 2, 1962, in Rogers, Arkansas. The first store,
called Walton's Five and Dime, was a discount variety store.

1969: Incorporation and Expansion

Walmart was incorporated as Wal-Mart Stores, Inc. The company went public, and its stock
began trading on the New York Stock Exchange.

1970s: Expansion in Rural Areas

Walmart continued its expansion, focusing on opening stores in rural areas where competition
was limited. The company's strategy involved keeping costs low and passing on the savings to
customers.

1980s: Introduction of Supercenters

In 1983, Walmart opened its first Walmart Supercenter in Missouri. These Supercenters
combined general merchandise with a full grocery store, providing customers with a one-stop
shopping experience.

1990s: International Expansion

Walmart ventured into international markets in the early 1990s, opening stores in Mexico,
Canada, and the United Kingdom. The company's global footprint continued to expand
throughout the decade.

2000s: Technological Advancements and Challenges

Walmart embraced technology, implementing innovations like the Retail Link system, which
allowed the company to share real-time sales data with its suppliers. However, the 2000s also
brought challenges, including criticism of labor practices and gender discrimination lawsuits.

2010s: E-commerce and Acquisitions

Walmart increased its focus on e-commerce and made strategic acquisitions to compete with
online retailers. In 2016, the company acquired Jet.com, an e-commerce startup, to enhance its
digital capabilities.

2020s: Continued Evolution

Walmart continued to adapt to changing consumer preferences and technological advancements.

The company expanded its online grocery services, invested in automation and robotics, and
experimented with new formats like cashierless stores.

Throughout its history, Walmart has been known for its commitment to providing low prices and
value to customers. The company's success has made it a dominant force in the retail industry,
with a vast network of stores both in the United States and internationally. Despite facing
challenges, Walmart's ability to innovate and adapt has allowed it to maintain its position as one
of the world's largest retailers
Mission and vision

Mission

As of my last knowledge update in January 2022, Walmart's official mission statement is:

"Saving people money so they can live better."

This succinct mission statement reflects Walmart's core commitment to providing customers
with affordable prices and, by doing so, improving their overall quality of life. The focus on
"saving people money" emphasizes the company's dedication to offering low prices and value
across a wide range of products. The aim is to enable customers to lead better lives by having
access to essential goods and services at affordable prices.

It's important to note that mission statements can evolve over time, and for the most current and
accurate information, it is recommended to check Walmart's official communications or website.

Vision

Walmart's official statement of its vision emphasizes its commitment to providing value to
customers and contributing to the well-being of communities. As of my last knowledge update in
January 2022, the vision statement of Walmart is:

"To be the best retailer in the hearts and minds of consumers and employees."

This vision statement reflects Walmart's aspiration to excel not only in terms of financial success
but also in building strong relationships with both customers and employees. The emphasis on
being the "best retailer in the hearts and minds" suggests a focus on customer loyalty and
satisfaction, while also recognizing the importance of a positive work environment for
employees.

It's worth noting that company visions can evolve over time, so for the most up-to-date
information, it's recommended to check Walmart's official communications or website.
Objectives

While specific corporate objectives of Walmart may not be explicitly outlined publicly,
companies typically set various objectives to guide their operations, strategy, and overall
direction. Based on Walmart's historical practices and publicly stated priorities, some of the
general objectives for Walmart may include:

● Everyday Low Prices (EDLP): Walmart is known for its commitment to providing

customers with low prices consistently. One of its primary objectives is to maintain this
pricing strategy to attract and retain customers.

● Customer Satisfaction and Loyalty: Walmart aims to enhance customer satisfaction

and loyalty by offering a broad range of products, improving customer service, and
providing a positive shopping experience both in-store and online.

● Global Expansion: Walmart has historically pursued international growth. Objectives

related to global expansion may include entering new markets, adapting to local
preferences, and establishing a strong presence in diverse regions.

● E-commerce Leadership: In response to changing consumer behavior, Walmart has

been focusing on strengthening its e-commerce capabilities. Objectives may include

increasing online sales, improving website functionality, and enhancing the overall digital
customer experience.

● Supply Chain Efficiency: Walmart is known for its efficient supply chain management.

Objectives related to the supply chain may include reducing costs, optimizing inventory
management, and ensuring a seamless flow of products from suppliers to stores.

● Corporate Social Responsibility (CSR): Walmart has committed to various CSR

initiatives. Objectives in this area may involve sustainability efforts, community

engagement, ethical sourcing, and philanthropic activities.

● Employee Development and Well-being: Walmart places importance on its workforce.

Objectives related to employees may include training and development programs,

promoting diversity and inclusion, and ensuring fair labor practices.
 ● Technological Innovation: Given the rapid advancements in technology, Walmart likely

has objectives related to leveraging innovative technologies to enhance its operations,

improve customer experiences, and stay competitive in the retail industry.

It's important to note that while these objectives align with Walmart's historical practices, the
specific goals and priorities may evolve over time. To obtain the most up-to-date and detailed
information on Walmart's current objectives, it's recommended to refer to the company's official
communications, such as annual reports or official statements.
SWOT Analysis

A SWOT analysis assesses a company's internal strengths and weaknesses as well as external
opportunities and threats. Here's a SWOT analysis of Walmart:

Strengths:

● Market Leadership: Walmart is a global retail leader and the world's largest company

by revenue. Its market dominance provides significant economies of scale and purchasing
power.

● Everyday Low Prices (EDLP): Walmart's commitment to EDLP is a key strength. It

attracts price-conscious consumers and fosters customer loyalty.

● Diverse Product Range: Walmart offers a wide range of products, from groceries to

electronics, apparel, and more. This diversity contributes to its one-stop-shop appeal.

● Global Presence: Walmart operates in multiple countries, allowing it to tap into diverse

markets and adapt its strategies to different regions.

● Supply Chain Management: The company is known for its efficient supply chain

management, which helps in maintaining low prices and reducing costs.

Weaknesses:

● Labor Practices: Walmart has faced criticism for its labor practices, including issues

related to wages and working conditions, which can impact its public image.

● Dependency on the U.S. Market: While Walmart has a global presence, a significant

portion of its revenue comes from the U.S., making it vulnerable to economic downturns
in the country.
 ● Negative Public Perception: Walmart has been criticized for its impact on local

businesses, environmental concerns, and employee treatment, leading to negative public

perception in some cases.

● Limited Focus on High-End Markets: Walmart's focus on low prices may limit its

appeal in high-end markets where consumers prioritize premium brands and experiences.

Opportunities:

● E-commerce Growth: Walmart has the opportunity to further capitalize on the growing

trend of online shopping by expanding its e-commerce presence and improving digital
capabilities.

● Health and Wellness Market: The increasing focus on health and wellness presents an

opportunity for Walmart to expand its offerings in areas like organic foods, fitness
products, and healthcare services.

● Global Expansion: Continued expansion into emerging markets can provide Walmart

with new growth opportunities and diversify its revenue sources.

● Technological Innovations: Embracing new technologies such as artificial intelligence,

data analytics, and automation can enhance operational efficiency and customer
experiences.

Threats:

● Competition: Walmart faces intense competition from both traditional retailers and e-

commerce giants. Competitors can impact market share and pricing strategies.

● Economic Downturns: Economic recessions can impact consumer spending, particularly

on non-essential items, affecting Walmart's sales and profitability.

● Regulatory Challenges: Changes in regulations, especially labor and environmental

regulations, can pose challenges to Walmart's operations and reputation.

 ● Online Retail Competition: E-commerce competitors, such as Amazon, pose a threat to

Walmart's online business. Adapting to changing consumer preferences and technological

advancements is crucial to staying competitive.

This SWOT analysis provides an overview of Walmart's internal strengths and weaknesses and
external opportunities and threats, which can help the company make informed strategic
decisions

Standard practice of walmart on pricing strategies:

Standard practice of Walmart's pricing strategy:

 ● Everyday Low Prices (EDLP): Walmart offers consistently low prices every day
instead of frequent discounts to attract customers and build loyalty.

● Rollback Pricing: Temporary discounts known as "rollback" prices are applied

to selected items to create a sense of values and promote sales
.
● Price Matching: Walmart matches prices from other retailers, ensuring
customers get the best deal enhancing its reputation for affordability

● Bulk Purchase Discounts: Discounts are offered for buying in larger quantities,
encouraging bulk purchases.

● Private Label Brands: Walmart promotes its own affordable brands alongside
national brands providing customers with affordable alternatives.

● Dynamic Pricing: Prices may change based on factors like demand and
competition, especially online.

● Competitor Pricing: Walmart adjusts its prices based on what other similar
stores charge. This helps Walmart stay competitive by offering similar or lower
prices, attracting customers and maintaining its position in the market.

● Clearance and Seasonal Sales: Regular sales events for clearing out old stock
or celebrating seasons that helps attract budget conscious shoppers

These strategies help Walmart provide affordable products and attract customers
seeking value for their money.
Conclusion

In conclusion, Walmart stands as a retail giant with a rich history, a global presence, and a
significant impact on the retail industry. Founded in 1962 by Sam Walton, the company has
evolved from a single discount store in Arkansas to become one of the world's largest and most
successful retailers.

Walmart's success can be attributed to its commitment to providing "Everyday Low Prices"
(EDLP) and offering a diverse range of products in various store formats. The company's focus
on operational efficiency, supply chain management, and leveraging technology has contributed
to its dominance in the market.

The international expansion of Walmart, along with its adaptability to local markets, has allowed
it to establish a global footprint. The company's embrace of e-commerce and technological
innovations reflects its efforts to stay competitive in the rapidly changing retail landscape.

Walmart's mission of "saving people money so they can live better" underscores its dedication to
affordability and customer value. Additionally, the company emphasizes corporate social
responsibility, sustainability, and community engagement as integral components of its business
practices.

While Walmart has faced challenges and criticisms, particularly related to labor practices and the
impact on local economies, its ability to adapt, innovate, and maintain a customer-centric
approach has sustained its position as a retail powerhouse. As the company continues to evolve
in response to emerging trends and market dynamics, it remains a key player in shaping the
future of the retail industry.