Walmart Comprehensive Analysis Harvard Case Solution & Analysis

Walmart Comprehensive Analysis Case Solution

Introduction

            Walmart had been founded by Sam Walton in the year 1962 and the company was listed on the New York Stock Exchange in 1972. Some of the researchers consider Walmart to be the trendsetter of the retailing industry. As of May 2016, the company has clubs around 28 countries and 11,534 stores around the world. The company is operating in Canada and United States under the name of Walmart. Walmart is the largest company in the world in terms of its total revenue and the company has a total workforce of 2.2 million employees, which also makes the company the biggest employer in the world, as shown by the Fortune Global 500 list of 2014 (Hayes, 2014).

Walton family controls the business therefore; it is a family owned business. The target customers of the company are anyone who want to save their everyday money. These people can be from all walks of life and they know that they will receive great customer service, customer value at the most desirable price. The company has made it convenient for all the lower pay scale people to easily shop around on their stores for many items such as household cleaners, cloths, groceries etc.

The majority of the retail stores of the company are operated in United States, in more than 50 states. There are three specific segments that are operated by the company, which are Walmart retail, Walmart US and Sam’s Club. The company also has wholly owned operations in many international countries such as China, South Africa, United Kingdom, Canada, Brazil, Argentina, Japan, Puerto Rico, and Mexico (Tedlow, 2007). This company analysis report focuses on the most significant issue, which is currently being faced by Walmart and analyzes the company performance around this issue.

Problem Diagnosis

            The main problem which is currently being faced by Walmart is the inability of the company to follow its own motto that, ‘customers are always right’. This is not always true and customers cannot be always right, however, the company and its management should treat its customers with admiration and respect. The main problem, which is still there at Walmart, is the poor customer service of the company. The company is laying off scores of its employees to overcome this problem. However, this is not the solution to this problem, which has been existent at Walmart for a long time.

This problem is well known and it has not been addressed by the management yet. One of the commentators had stated the business model of the company emphasizes only on low prices and they do not care about their customers. This problem also occurred in the year 2013, when majority of the customers complained that they were not able to find their desired products at Walmart. Other customers complained about long check-out lines, poor selection, and bad customer service. Therefore, this is the main issue facing Walmart today, which could result in serious consequences for a retailer like Walmart.

Strategic Direction

Wal-Mart’s Mission, business and marketing strategy

Walmart Mission     

The mission of the company is to offer its customers the best quality merchandise at the lowest costs possible in all of their stores around the world. These products could range from top quality groceries, household items, and cloths to school supplies.

Walmart Business Strategies

The success of Walmart is greatly contributed by its strategic focus on the value chain activities of the company. The huge value of discount retailing, which has been supplied by the company to the entire world, has been created by the innovative use of the outbound and inbound logistics with mastery of the complex management process with focus on maximizing the economies of scale..................

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