How Walmart’s Business Strategy has Revolutionized the Retail Industry

How Walmart’s Business Strategy Has Revolutionized the Retail Industry

As one of the largest retail chains globally, Walmart’s business strategy has changed the retail industry’s landscape. Their innovative approach and attention to customer needs have set them apart from the rest and established a culture of continuous improvement throughout the industry.

Introduction:

Walmart’s success story is a classic example of how a single store can transform into a global phenomenon. The company started as a small discount store in Arkansas in the 1960s and has now grown to become a multinational retailer with a presence in 27 countries worldwide. Over the years, Walmart has maintained a reputation for providing low-cost products to the masses. However, the company’s business strategy has evolved to offer much more than just affordable prices. Today, Walmart prioritizes their relationship with customers by curating an experience that is personalized to their needs.

The Body:

Customer-Centric Approach:

One of the cornerstones of Walmart’s business strategy is their customer-centric approach. Walmart focuses on their customers’ wants, needs, and feedback to provide products that cater to their preferences. The company has continually adapted its strategies, offering new services like grocery pick-up and mobile checkouts to improve customers’ shopping experiences. By gathering customer data through various means, Walmart can keep track of who their ideal customers are and know what they want. Walmart’s commitment to creating a personalized experience has allowed the company to retain its current customers while also attracting new ones.

Inventory Management:

Walmart has been able to maintain its low prices by implementing an innovative inventory management system. Walmart emphasizes efficiency in their supply chain, ensuring that product delivery is timely, reducing shelf-life inventory by curating and restocking inventory more often, and managing products categorized according to their sales volume. By constantly analyzing and eliminating underperforming items, Walmart can keep items of higher demand in inventory, reducing their pricing and operational costs. Additionally, Walmart uses technology to help manage inventory. The company’s unique inventory management system enables employees to keep track of the products’ location in real-time, thus fulfilling customers demand without delay.

Online Presence:

Walmart has also invested in its online presence in recent years. The company’s e-commerce platform is one of the fastest-growing, with an increase in sales by 97% in Q4 2020 compared to 2019. Walmart’s investment in online services has allowed for easy access to their products regardless of a customer’s location. Their online platform offers several services that are not available in-store for customers, such as same-day delivery, subscriptions, and 2-day shipping. Walmart makes it a priority to personalize their online experience by curating recommendations and promoting items that may interest customers based on their past purchase history.

Conclusion:

Walmart’s business strategy has revolutionized the retail industry by placing importance on their customers, along with their inventory management and online infrastructure. The company has embraced new retail technologies, centralized its supply chain, and created personalized customer experiences to improve product accessibility, price competitiveness and the shopping experience. These innovative approaches allow the company to maintain its position as a leading group in the global retail industry. Retailers worldwide can learn from Walmart’s business strategy and prioritize their customer experiences whilst also optimizing operational efficiencies.

In summary, Walmart puts its customer-base in the center of their strategy, tightly manages their supply chain via inventory management, and creates an efficient online presence. Walmart is a benchmark for other retailers to learn and create strategies that involve technological innovation, efficient logistics, and direct contact with customers.

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