The History of Walmart

Topics: Supply chain, Electronic commerce, Strategic management Pages: 13 (3933 words) Published: March 10, 2014
Since Sam Walton opened his first store in 1962, Walmart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. Walmart is comprised of three business segments, Walmart US, Walmart International and Sam’s Club. Walmart Global eCommerce works across all three segments. Walmart’s mission statement “We save people money so they can live better”, is not indicative of where its strategic focus areas are, but it does sound good for the average customer who has a limited budget. This mission statement leads directly into Walmart Global eCommerce goals which include combining online, social innovations with physical stores to give consumers “anywhere, anytime shopping experience” in addition to its organizational sustainability goal of creating zero waste, using only sustainable energy and selling products that sustain the environment which is important to all of Walmart’s segments including eCommerce. Walmart’s overall objective is to deliver shareholder value by increasing earnings per share, returns and maintaining strong stable returns on investment. According to Walmart CEO, Mike Duke, Walmart’s strategic focus areas are: •Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates; •Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers •Being even more disciplined about operating expenses and capital spending; •Investing to serve more customers globally and accelerating the vision of anytime, anywhere access by bringing together best-in-class online, mobile and social capabilities and our more than 10,700 stores; and •Benefiting our communities and having a world class compliance organization. Walmart has been a giant of the traditional brick and mortar retailers, having topped the Fortune 500 list on more than one occasion. Walmart is moving from a traditional brick and mortar discount retailer to a click and mortar discount retailer as it tries to capture the growing electronic retailing (etailing) opportunities. According to CNN Money, Walmart plans to become an online juggernaut, but its online business numbers have been disappointing. According to Business Insider, Walmart Global eCommerce has come up with a plan to do eCommerce right by using the following strategies: •Walmart began recruiting top Silicon Valley talent and acquiring start-ups last year. •Walmart is investing in the "social gifting" market.

The retailer got a better search engine.
Walmart is trying to lead the charge in same-day shipping. •Walmart is investing like crazy in its mobile app.
While Walmart’s strategies have lead them to overall very good profitability in the past, their eCommerce is struggling against Amazon, an eCommerce giant, and other traditional retailers who are moving to capture customers that are turning to online purchases. Walmart appears to be moving in the right direction with its mobile application, with Smartphone sales having outpaced personal computer sales in 2011. Walmart Global eCommerce will need review and tailor its value chains in order to comprehensively differentiate itself from other click and mortar businesses. As 2014 approaches Walmart will face several issues/problems which include: Customers who can access competitor prices online when shopping in Walmart; and finding ways to successfully break into the e-tailing market which is a primarily untapped, rapidly growing market. The SWOT analysis will look at Walmart Global eCommerce as it attempts to move definitely into eCommerce while supporting all Walmart’s traditional brick and mortar businesses. Since Walmart Global eCommerce is responsible for all online and mobile innovation, this SWOT analysis will include issues pertaining to all of Walmart, but will pay particular attention to the...
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