Buy Essay Walmart Business Model is Effective
Walmart business model has proven to be highly effective. The company has a strong focus on low prices and high volume, which has allowed it to dominate the retail market and become one of the most successful companies in the world.
One of the key strengths of Walmart’s business model is its ability to leverage its scale to achieve cost efficiencies. The company’s massive size allows it to negotiate lower prices from suppliers and operate with lower margins than its competitors. This enables Walmart to offer products at lower prices than other retailers, which attracts price-sensitive consumers.
Walmart Business Model
To maximize profits the company embarks on a strategy that, as aforementioned, is distinctive from the rest. Walmart’s business model is effective and hence it continues to record huge sales all over the world. Customer satisfaction and a positive company brand give it a sustainable competitive edge (Burgelman et al, 2000, p. 34). Nevertheless, the model has great shortcomings although blurred by the company’s exemplary performance many people seem not to notice them.
Walmart uses its resource base value to shake off competition emanating from other retail stores. Burgelman et al (2000) espouse that, momentous revenues help the company to establish big outlets and acquire other businesses struggling to withstand the momentous competition (p.45). Earlier this year, the company acquired Massmart- one of the leading retail chains in South Africa.
Another important aspect of Walmart’s business model is its focus on operational efficiency. The company uses advanced technology and logistics systems to optimize its supply chain and inventory management processes. This allows Walmart to minimize waste and reduce costs while ensuring that products are available to customers when they need them.
In addition, Walmart has invested heavily in its e-commerce capabilities in recent years, which has allowed it to compete more effectively with online retailers like Amazon. The company’s online platform offers a wide range of products at competitive prices and provides customers with the convenience of shopping from home.
One of the criticisms of Walmart’s business model is that it relies heavily on low wages and benefits for its employees. However, the company has taken steps to address these concerns, including increasing the minimum wage for its employees and offering more benefits.
Walmart’s business model has proven to be highly effective in the retail industry. The company’s focus on low prices and high volume, combined with its operational efficiency and e-commerce capabilities, has allowed it to dominate the market and maintain its position as a global retail leader. While there are certainly challenges and criticisms associated with Walmart’s business practices, there is no denying the effectiveness of its overall approach.