Walmart Business Model Study
Yuansheng LI - (IJAEBM) INTERNATIONAL JOURNAL OF ADVANCED ECONOMICS AND BUSINESS MANAGEMENT Vol No. 1, Issue No. 2, 093 - 097
Walmart Business Model Study
School of Language and Management, Heriot-Watt University, Edinburgh, UK School of Management, Politecnico di Milano, Milano, Italy School of Business Management, Umea University, Umea, Sweden tomlee315@hotmail.com Abstract----This report explores the features and the role of business model of Walmart in creating and capturing value. A successful business model always links to its strategy, internal and external environment, technologies, management and value chain. The first part of this report introduces Walmart’s mission, strategy and its history. The second part analyses Walmart’s business model using Nine Building Blocks. The third part critically discusses the validity of the Walmart’s business model. According to the analysis of the business model, the fourth and fifth parts address the low cost strategy and how Walmart innovates the business model to achieve its mission. This report concludes that the Walmart's business model is a successful one, but also needs to continuously innovate and develop the research on limitations. 1. Introduction small towns led to criticism that the stores took business away from small, hometown merchants (Magretta, 2002). When Walton died in 1992, the adjustment to a post-Sam environment proved difficult. Even though Walmart executives had emphasized for years that their company depended on a set of principles and habits more than it did on any one person, Walton's death wound up marking a fateful shift in how the company was perceived. Between 1997 and 2001, the company's stock value increased by over 500 percent, rising by 70 percent in 1997 alone. This undoubtedly helped to mollify employees who'd been unhappy with the slump earlier in the decade. (Frank, 2006)
Yuansheng LI
IJ
ISSN: 2230-7826
“Saving people money so they can have a better life” Walmart’s
Walmart Business Model Study
School of Language and Management, Heriot-Watt University, Edinburgh, UK School of Management, Politecnico di Milano, Milano, Italy School of Business Management, Umea University, Umea, Sweden tomlee315@hotmail.com Abstract----This report explores the features and the role of business model of Walmart in creating and capturing value. A successful business model always links to its strategy, internal and external environment, technologies, management and value chain. The first part of this report introduces Walmart’s mission, strategy and its history. The second part analyses Walmart’s business model using Nine Building Blocks. The third part critically discusses the validity of the Walmart’s business model. According to the analysis of the business model, the fourth and fifth parts address the low cost strategy and how Walmart innovates the business model to achieve its mission. This report concludes that the Walmart's business model is a successful one, but also needs to continuously innovate and develop the research on limitations. 1. Introduction small towns led to criticism that the stores took business away from small, hometown merchants (Magretta, 2002). When Walton died in 1992, the adjustment to a post-Sam environment proved difficult. Even though Walmart executives had emphasized for years that their company depended on a set of principles and habits more than it did on any one person, Walton's death wound up marking a fateful shift in how the company was perceived. Between 1997 and 2001, the company's stock value increased by over 500 percent, rising by 70 percent in 1997 alone. This undoubtedly helped to mollify employees who'd been unhappy with the slump earlier in the decade. (Frank, 2006)
Yuansheng LI
IJ
ISSN: 2230-7826
“Saving people money so they can have a better life” Walmart’s