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Technological University of the Philippines College of Liberal Arts Department of Entrepreneurship and ManagementA Case Study Analysis of WALMARTA partial fulfillment of the requirements in CBMEC 2 – Strategic Management.Submitted to: Prof. Juliet A. CataneSubmitted by: Quintana, Ariel Riazon, Johan...

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Technological University of the Philippines College of Liberal Arts Department of Entrepreneurship and Management

A Case Study Analysis of WALMART

A partial fulfillment of the requirements in CBMEC 2 – Strategic Management.

Submitted to: Prof. Juliet A. Catane

Submitted by: Quintana, Ariel Riazon, Johan Paulo

BAM-IM-3A-M

April 15, 2021

INTRODUCTION

Walmart Inc. or known as Walmart Stores Inc., is located in Bentonville, Arkansas, it is an American international retail company that runs a network of hypermarkets, discount department stores, and convenience stores in the United States. Sam Walton was founded Wal-Mart in Rogers, Arkansas, in 1962, with an early emphasis on rural areas to escape a strong competition with retailing beasts like Sears and Kmart which are the leading retailer stores in those year.

History and Background.

Sam Walton was born in Kingfisher, Oklahoma, in 1918. He enlisted in the military at the age of 24 in 1942. During the year 1943, he married Helen Robson. Sam and Helen migrated to Iowa and then to Newport, Arkansas after He's military service ended in 1945, Sam gained early retail experience during this period, ultimately opening his own variety store.

The Waltons family moved from Newport to Bentonville in 1950, it where Sam established Walton's 5&10 on the downtown square. Helen wanted to live in a small town, and then Sam decided to take advantage of the various hunting seasons that living on the border of four states provided. Sam opened the first Walmart in Rogers, Arkansas, at the age of 44, motivated by the early success of his dime store and guided to offer much more opportunities and service to his customers. In 1970, the company came out through public, and the proceeds were used to fund a steady growth of the company. Sam attributed Walmart's fast success not only to the cheap rates that pulled consumers in, but also to his staff that He counted on them to have a wonderful customer experience that would encourage consumers to visit there store. Soddenly Sam Walton passed away in 1992,in just a few years after receiving the Medal of freedom, but his legacy still continues through. Walmart has been a retail business pioneer until this day.

Walmart’s Timeline. 

1960s (Retail Revolution) - Sam Walton's strategy is based on a rock-solid foundation: the lowest cost, anytime, anywhere. -

1962 - On July 2, 1962, Sam Walton opens the first Walmart store in Rogers, Arkansas.

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1967 - The Walton family possesses 24 stores with a total revenue of $12.7 million.

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1969 - Wal-Mart Stores, Inc. became the official name of the organization.

1970s (Walmart goes National) - Mr. Sam continues to take Walmart national in the 1970s, a decade of unexpected success, guaranteeing his vision's widespread appeal. -

1970 - Walmart becomes a publicly traded company. The first stock is sold at $16.50 per share.

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1971 - In Bentonville, Arkansas, the first distribution center and Home Office are established.

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1972 - Walmart is a publicly traded company on the New York Stock Exchange (WMT). Walmart made $78 million in sales with 51 locations.

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1975 - Sam Walton launches the Walmart cheer, which was inspired by a visit to a Korean production plant.

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1979 - The Walmart Foundation is established.

1980s (Decades of Firsts) - The first Sam's Club, which services local businessmen and customers, launches in the 1980s, as does the first Walmart Supercenter, which incorporates a supermarket and general goods. -

1980 - Walmart was the first corporation to achieve $1 billion in net revenue, surpassing all those other company at that period. Walmart has 276 outlets and 21,000 employees.

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1983 - In Midwest City, Oklahoma, the first Sam's Club launches. Walmart utilizes computerized point-of-sale devices to replace cash registers, allowing for easy and reliable checkout.

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1984 - On Wall Street, Sam Walton executes the hula dance , honoring a pledge to associates as the organization achieves a pre-tax benefit of 8% for the previous fiscal year.

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1987 - The Walton Family Foundation is founded by the Walton family. The company deploys the United States' largest private satellite communication

system, which connects the company's operations through voice, data, and video communication. -

1988 - In Washington, Missouri, the first Walmart Supercenter opens, merging general merchandise with a full-service supermarket to offer one-stop shopping experience. and then

David Glass has been hired as the

company's CEO. 

1990s (America’s Top Retailer) - Walmart became the most popular supermarket in the United States by 1990. Everyday Low Pricing expands globally as the Walmart Supercenter redefines affordability and one-stop shopping. -

1991 - Walmart opens a Sam's Club in Mexico City as part of a joint partnership with Cifra, which a Mexican supermarket group.

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1992 - Promptly before his death at the age of 74, Sam Walton, while earning the Medal of Freedom, explains the company's goal of saving people money so they can live better. And then at the same year Rob Walton takes over as chairman of the board of directors. Also Walmart has 371,000 employees working in 1,928 shops and clubs.

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1993 - Walmart celebrates its first $1 billion sales week.

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1994 - With the purchasing of 122 Woolco outlets, Walmart expands into Canada.

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1996 - Walmart opens its first stores in China.

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1997 - The company celebrates its first $100 billion sales year.

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1998 - Arkansas became the first state to adopt the Community Market model, in three stores. Through the purchase of Asda, Walmart enters the United Kingdom.

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2000s (New Millennium) - David Glass is succeeded as CEO by H. Lee Scott, Jr. Walmart.com is introduced, encouraging shoppers in the United States to buy online. Walmart has over 1.1 million employees operating in 3,989 shops and clubs around the country.

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2002 - Walmart has ascended to the top of the Fortune 500 list of America's biggest corporations for the first time. Through its investment in Seiyu, Walmart enters the Japanese market.

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2005 - Walmart is a pioneer in disaster recovery, having donated $18 million and 2,450 truckloads of resources to hurricane Katrina and Rita victims. Walmart has made a huge contribution to environmental sustainability, announcing targets to generate zero waste, use only green resources, and deliver goods that support both consumers and the environment.

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2006 - Walmart introduces its $4 generic-drug prescription program.

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2007 - Walmart.com introduces the Site to Retail service, which allows shoppers to shop online and pick up their purchases in store.

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2008 - Mike Duke becomes CEO.

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2009 - With the purchasing of a majority interest in D&S S.A., Walmart enters Chile. Walmart has reached $400 billion in net revenue for the first time.

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2010s (People-Led and Tech-Empowered) - Walmart also committed to delivering excellent customer support in a constantly changing market environment, relying on both employees and technologies to do so. Bharti Walmart, a joint venture, opens its first store in India. Walmart has committed $2 billion to help end malnutrition in the United States by the end of 2015. Walmart announces a global dedication to sustainable agriculture, with the aim of supporting local producers and economies while also supplying shoppers with healthy, high-quality products. -

2011 - Through purchasing 51 percent of Massmart Holdings Limited, Walmart expands its market into South Africa. Walmart now has over 10,000 supermarket stores around the country, contributing to the purchase of Massmart in South Africa.

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2012 - Walmart celebrates 50 years of helping people save money so they can live better.

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2013 - Walmart USA has announced that every honorably discharged soldier will be hired within one year of leaving active service. About 100,000 veterans are expected to be employed by Walmart in the next five

years. Bharti Walmart Private Limited is purchased by Walmart, which has the Best Price Modern Wholesale cash and carry market in India. For the next ten years, Walmart plans to spend $250 billion on products made in the United States. In the District of Columbia, Walmart opens its first store. -

2014 - Doug McMillon takes over as CEO from Mike Duke. Greg Foran is appointed President and CEO of Walmart in the United States.

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2015 - More than 200 million consumers are represented per week by the company's 2.3 million employees in more than 11,000 outlets in 27 countries. Walmart announces a $2.7 billion increase in the U.S. workforce over the next two years, including raising the minimum wage to $9 an hour, introducing new educational systems, and allowing employees greater scheduling flexibility.

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2016 - In Bentonville, Walmart opens its Culinary & Innovation Center to create and research new and creative products. Jet.com, an online retailer, also joined the Walmart family, allowing the two businesses to save shoppers much more time and money. This acquisition also includes Hayneedle, a Jet.com company. Walmart will open the first training academy in South Carolina, with a total of 200 expected across the United States. Also, in this year the organization pledges to become the most trusted retailer by 2025 by meeting ambitious targets based on innovation, workforce empowerment, and enhancing the lives of people all over the world.

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2017 - Sam's Club's current president and CEO is John Furner. Walmart offers free two-day delivery on over 2 million goods without requiring a membership.

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Present years (Leading the Future and Retail) - By utilizing emerging technologies and learning from its expanding family of brands, Walmart aims to lead the way in product creativity, serving both shoppers and associates. -

2018 - The company changes its legal name from Wal-Mart Stores, Inc. to Walmart Inc. and then Judith McKenna becomes President and CEO of Walmart International.

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2019 - Walmart U.S. has appointed John Furner as the new President and CEO.

Evolution of Walmart’s Logo The brand name has been the focal point of logo design from the beginning. The logo has gone through many improvements, including fonts, colour, and, most notably, orthography.

1950 - 1962 The first branding used red capital letters to spell out the company's name, "Walton's." The artist went for a plain sans serif font.

1962 - 1964 Walmart launched without a true logo. In fact, for the first two years, when the Walmart name appeared in print, the font and style were chosen at the whim of the printer. The word "Walmart" is written in blue here. The type is still sans serif, but it has a longer appearance than its predecessor.

1964-1981 In 1964, the company selected a font. This “Frontier Font Logo” was the first official and first consistently used logo in our history. It survived for nearly 20 years. This symbol, unlike the others, had a distinct look. The style was notable for its unique serifs and decorative dots in the center of each letter.

1968 – 1981 Along with the first official logo, Walmart has developed a Discount City mark. This mark appeared in print advertising and in-store signage, as well as on employee uniforms and smocks. However, it was never used on exterior building signage or in annual reports.

1981 - 1992 After nearly 20 years, the company dropped the frontier feel of the logo and introduced a fresh new look for Walmart. The letters in the Walmart logo were given a new look as well as a new shade after a full redesign. They were now brown and seemed to be very basic. It was a standard sans serif font. The lack of breathing room between the letters "L" and "M" was perhaps the most strange feature.

1992 – 2008 In 1992, Although the form was almost similar, it was now dark blue. The company replaced the hyphen with a star, adding a unique accent. This logo can still be seen on many of Walmart’s North American storefronts as they continue to transition hundreds of stores to the newest logo.

2008 - Present In 2008, Walmart underwent the most significant logo change to date, introducing a new font and the iconic spark. All the letters were lowercased except the “W.” A friendlier, rounded style replaced the heavy geometric type. Because of the sunshine theme, the new logo had a cheerful and youthful feel to it. The choice of colors (blue and yellow) and the form of the symbol, which resembled sunrays, helped to define it.

Vision and Mission. Walmart implements its vision and mission statements with a standardized cost leadership strategy (based on Porter's model) that offers the retailer a strategic advantage over competitors like Amazon.com Inc. and its affiliate Whole Foods Business, as well as Costco Wholesale, eBay, and Home Depot. Walmart's progress in fulfilling its mission and vision is supported by a range of continuous innovation strategies such as customer expansion and market development.

Vision of Walmart

“Be the destination for customers to save money, no matter how they want to shop.” The vision statement has been changed from the previous statement. “To be the best retailer in the hearts and minds of consumers and employees.” The improvement in Walmart's corporate vision demonstrates strategic changes created regarding changes in the economic environment and the state of the retail market. In the past, the company's strategic goal was to become the industry's leading player. Walmart's new vision statement has the same target, along with a focus on the company's flexibility in serving consumers. For instance, the component "no matter how they want to shop" shows the company's strategic goal of gaining leadership in both conventional brick-and-mortar and online retail transactions. Nevertheless, the same change emphasizes Walmart's vision statement's elimination of "employees" as a vital element. Employee support can be diminished because of this change. Employees are a large stakeholder community significant to Walmart's Corporate social responsibility policy and stakeholder management, and therefore this change may represent human resource management issues. As previously stated, Walmart is focused on providing consumers with a pricecentric value by selling low-cost everyday items that enable them to save money. The firm, on the other hand, needs to have more value to their consumers. Walmart is based on helping shoppers “save money, no matter how they want to shop,” according to its vision statement. To service local communities, the organization has already launched many retail stores in various formats. The business now aims to extend its value model beyond its standard marketing models. Walmart also recognized that a significant portion of their consumer base consists of working families who do not often have the opportunity to shop in a physical store. The organization aims to offer innovative value-added services to make customer lives easier. Walmart has now started to strengthen its online presence by launching its own e-commerce website. Customers who do not want to visit the store can now put their orders online, saving time and effort. As a result, the organization is attempting to provide shoppers with a variety of options to shop at Walmart while saving money.

In this situation, it is reasonable to conclude that Walmart now intends to extend its value propositions while maintaining its low-price strategy. Customers will also benefit from additional benefits and quicker checkouts due to the company's own mobile payment system. To complement their online shopping site, the company has now launched an express distribution system. Customers will now have their orders delivered in a shorter amount of time. As a result, it can be mentioned that Walmart's vision is to increase its value range while staying faithful to its daily low-price approach.

Mission of Walmart “To save people money so they can live better.”

The whole statement represents the company's founder, Sam Walton's, values. This mission statement, which is correlated with the company's slogan, "Save money. Live better," is a clear expression of strategic business decisions. The statement is simple, but it contains a lot of information on Walmart's current operational activities. Walmart's marketing tactics clearly include exploiting price as a selling point to attract target customers, as shown by this mission statement. Many of the business's strategies illustrate the value of such a selling point. Low costs, for instance, are a strategy in Walmart Inc.'s marketing mix (4P). Other aspects of the business are affected by the need to reduce selling costs to stay competitive. Walmart meets the mission statement's goal of "saving consumers money" by delivering low prices. For Consumers, for example, save money by purchasing items from the company's shops rather than purchasing the same or identical goods from midscale and high-end retailers. Rather than just selling low-cost goods, the firm has concentrated on providing greater convenience for consumers. Walmart now runs three major types of shopping outlets: supercenters, discount stores, and neighborhood markets. Each one is specially made to meet the specific needs and desires of the local neighborhoods. Customers can pick up their everyday use items without having to drive long distances due to the small format neighborhood stores. Furthermore, delivering a wide range of items,

spanning from stationery to food, helps shoppers to buy all their necessities in one location, saving time and effort. However, in some cases, it is unclear if the organization meets the corporate mission's "live better" portion. There have been concerns about Walmart's employees' poor wages, which make it impossible for them to improve their livelihood, as well as numerous human resource management concerns within the business. There are also concerns over the company's large-scale purchases of low-cost manufactured products having long-term economic implications.

STRATEGIC ANALYSIS Marketing Strategy. To successfully run such a massive company, Walmart must implement what we can refer to as the Walmart Marketing Mix. It is the same marketing mix approach that can be used in other industries, but the retailer's strategy is highly successful. An overview of how Walmart approaches its marketing mix key concepts is given below. Price, Product, Promotion, Place, and People are the five basic concepts of a marketing mix.

Price Strategy A product's price influences its future success and long-term profitability. It decides the profits made from sales as well as the product's market competitiveness. The profit per unit sold would be high if the commodity is overpriced. Contrarily, if prices are poor, demand is more likely to be high. Companies may select between high value and low volume or low value and high volume.

Walmart uses an Everyday Low Price (EDLP) pricing strategy as a component of the company's sales strategy in this aspect of the 4Ps. This pricing strategy's goal is to draw a significant number of consumers to maintain a high market volume and, as a result, a profitable b...