By holding promises to the customers with its everyday low prices, Walmart has damaged many of its competitor companies. It also experiences a lot of problems and challenges in the workforce like any other firm. Still, it continues to thrive by implementing its experience and adapting according to the prevailing condition. As Walmart conducts and expands its business operations throughout the world, they have been impacted by change at all levels. However, it has also benefited from its philosophies and management practices; these have helped them succeed in diverse countries worldwide.
It’s difficult to avoid shopping at Walmart. From a recent survey, it’s been reported that in the United States, around 90% of its whole population lives within 10miles of a Walmart store. And, for the remaining 10% population, there is always online. Also, check this out to safeguard all your bills anytime, anywhere. A report says that almost 95% of the US population spent money in a Walmart store. Today, Walmart operates 10,500 stores and clubs (approx.) under 48 banners across 24 countries and e-commerce websites.
Total Quality Management (TQM) is a concept rooted in operation to reduce cost, increase quality and fulfill the customer needs in the shortest amount of time for continuous improvement. TQM tools rely on management principles centered on the education of employees, empowerment, and customers’ needs. TQM mainly focuses on quality improvement of an organization’s products and services, and directs all value added activities towards its goal. The core concept that lies behind is, there is always a better way to handle the job by mitigating the waste associated with the way the job used to be done. Thus, Walmart continues to find out how to meet its customers’ expectations and offer a variety of products at the lowest price possible.
Walmart always fills the needs of each population; for instance, it identifies the needs of a customer and focuses on their needs to fulfill that. For example, Walmart identified an increase in demand for plus-size clothing, and it added an extra outlet to attract customers by offering them what they wanted at lower prices. As a result, Walmart implemented this plus-size department to increase its sales nationally and also internationally. The company has also implemented many strategies to keep customers as long as possible in the store because they believe that the longer the time spent in-store, the more money customers spend.
Walmart has huge competitors such as Target, Costco Wholesale, and Kmart are its close competitors in the large-scale discount stores in the United States. In addition, it had positioned itself among Kroger, Safeway, Publix, Albertsons, Winn-Dixie, and other regional independents. Competitors create obstacles such as product monopolies, loss of share market, and lower prices. However, the sales of Walmart are more than four times the number of – two retailers. Walmart’s survival amongst its competitors is achieved by the strategies implemented in identifying and satisfying customers’ needs.
Demographic forces are the results of perception or characteristics change of a population such as age, social class, and ethnic group. When the economy becomes more open to globalization, the diversity of customers will also become essential for giant retailers, which helps in selecting the location, product types, strategies, and selecting employees. Walmart used a strategy called “Store of the Community” to attract and increase the range of local customers. For example, this strategy has been successful in the Canadian market, at least in Vancouver, which has several commercials with several languages to cope with the local’s native tongue. Walmart also catered effectively to the lower and middle-class communities by providing low-priced products and services.
One of the most important technologies is Information Technology. It has a tremendous amount of effect on Walmart by providing the latest Information Technology in its supply chain. Walmart utilized Information Technology to modernize its stores by integrating bar-code scanners at its register for sharing the exact information. Logged sales data helps in providing the exact date of purchasing and also given the exact inventory quantity. In addition, Walmart uses a Just-In-Time inventory management system. The Just-In-Time inventory system helps to store the most needed products and make orders according to the demand. Walmart also implemented Radio Frequency Identification RFID technology in its supply chain. This technology replaces bar codes and helps in cost cuts.
Walmart is the world’s largest company. They make nearly half of a trillion dollars a year, which shows that they have a substantial influence and purchasing power. Walmart has about 2.3 million employees, which is the largest privately-employed workforce in the globe. Also, it is the world’s biggest family-owned business. As a result, it has had solid success consistently.
While opening more stores outside of the United States, Walmart found huge success. Their openings in the United Kingdom, China, and South America have substantiated their solid success (more profitable). However, they have some failures. For example, they shut down their retail shops in Germany. The reason for failure is trying to impress American culture’s value on Germans.
In 1987, Walmart launched its $24 million-dollar private satellite network to provide an association between every single store of the company with their headquarters in Bentonville. When it was launched, it was named as the largest satellite network ever created. As a result, they were able to send personalized information to their stores.