Walmart Distribution Strategy

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Walmart is a multinational retail company with large warehouses and superstores. It is considered among the top valuable companies with averagely over $300 billion sales a year. The company is the world’s biggest employer with over 1.2 million employees across the globe. Walmart has employed the low cost pricing strategy since its foundation. This strategy is inclined to the patterns of cost leadership. By offering the lowest cost of operation in the industry, Walmart attains a competitive advantage over other companies. Since the company gives lowest costs, it gives retailers a chance to offer lowest prices to their customers in the market. This is the reason behind implementation of price leadership in Walmart. Recent study shows that Walmart…show more content…
For instance it has its own store brands and the most popular currently is the brand great value. It’s store brands account for approximately forty percent of the company’s total sales. It is involved in sale of groceries in the shields of condiments, breakfast and cereal, sauces and spices, baking, beverages and more. Studying the different ways by which a customer can reach Walmart’s products is all about its distribution strategies. The company engages in both traditional stores, which involves discount stores, neighbourhood markets, supercentre and express stores and e-commerce on the other hand. It is worth noting that most of the company’s sales are from the physical stores. However, its website allows a customer to buy online besides providing current information on weekly discounts, manufacturer’s coupons, finding the closest store, provision for signing up for a newsletter and so on. Walmart’s stores are easily accessible to the customers. The customers are free to contact the company twenty-four hours a day and seven days a week and this has greatly contributed to customer…show more content…
Mr. McMillon and his team must have studied trends within and outside the organization before making a final decision on changes that need to be effected. Walmart has seen changes in the following areas; pay, employee development and training, wide choice in scheduling, employees’ benefits such as healthcare and education, merit based path in regard to promotions and raises. McMillon and his team believe that by changing the employment practices, they will in turn provide better customer service. It is also true that the improved performance displayed by employees in terms of customer service providence will attract more customers and encourage them to spend more. This is the driving force towards implementation of the different changes in employment practices in Walmart. On the other hand, Walmart’s competitors have increased their minimum wage. This puts Walmart at a risk of losing their employees in case they do not keep up. The company received intense pressure by minimum wage activists and workers. It is worth noting the minimum wage for other states such as California where Walmart employs majority of the workers will be already having a ten-dollar minimum wage. Other factors behind the decision include the emerging city minimum wages among other aspects. Walmart’s management has painted the organization as a special place and a great opportunity to work

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