Walmart is an American multinational retail corporation that operates under various names in different countries. Founded by Sam Walton in 1960 as Walton’s Market, the company has since expanded to become one of the world’s largest retailers, with over 10,500 stores and clubs under 48 banners worldwide.
The Company’s Business Model
Walmart’s business model is built around the principles of low prices, fast service, and a wide selection of products. The company operates on a just-in-time inventory system, which means that it orders products in small quantities and receives them as soon as they are available, minimizing the risk of overstocking or stockouts.
Walmart also employs a number of innovative strategies to keep costs low. For example, the company uses advanced technology such as RFID tags and robots to streamline its supply chain and improve efficiency. It also outsources manufacturing and distribution to suppliers in countries with lower labor costs, which allows it to offer lower prices to customers.
Walmart’s Impact on the Retail Industry
Walmart has had a profound impact on the retail industry, both positive and negative. On the one hand, the company has helped to democratize access to affordable products, making them available to people from all walks of life. Walmart’s stores are known for their wide selection of items at low prices, which has made it easier for consumers to buy what they need without breaking the bank.
On the other hand, Walmart has also been criticized for its labor practices and environmental impact. The company has faced accusations of exploiting workers in its stores and factories, paying them low wages and offering few benefits. It has also been accused of contributing to climate change through its energy consumption and transportation practices.
Case Studies
One example of Walmart’s positive impact on the retail industry is its partnership with Google. In 2018, the two companies announced a collaboration that would allow Walmart customers to shop online using Google Assistant or search for products on Google. This move helped to bring more customers into the world of online shopping, which has traditionally been dominated by Amazon and other e-commerce giants.
Another example is Walmart’s investment in renewable energy. In 2019, the company announced that it had set a goal to generate 50% of its electricity from renewable sources by 2025. This move has helped to reduce Walmart’s carbon footprint and demonstrate its commitment to sustainability.
Expert Opinions
“Walmart is one of the most important companies in the world, not just because of its size but because of its impact on American society,” says Robert C. Feenstra, a professor of economics at Calvin College and author of “The Walmart Way: How Walmart Built the World’s Largest Company.”
“At the same time, Walmart has faced criticism for its labor practices and environmental impact. As a business leader, it is important to be aware of these issues and work to address them in order to build a sustainable future for the company,” says Feenstra.
Real-Life Examples
One example of Walmart’s positive impact on local communities is its job creation program. In 2018, the company announced that it planned to create 1.4 million new jobs in the United States over the next five years, bringing the total number of employees to 2.3 million. These jobs will help to stimulate local economies and provide opportunities for people who may not have had access to them otherwise.
Another example is Walmart’s commitment to supporting local suppliers. In 2017, the company announced that it was investing $10 billion in American suppliers over the next five years, with a goal of sourcing 50% of its products domestically by 2025. This move will help to create more jobs and support local economies.
