Case #1: Walmart
1. Describe Walmart’s goal, industry, and product.
2. Use the Generic Strategies Grid to identify the competitive strategy of Walmart. Justify both the X-axis and
the Y-axis.
3. Use the Five Forces Model and discuss the forces that impact Walmart’s strategy.
4. Based upon the model results, what recommendation would you give Walmart for moving forward with its
strategy.
Goal: To provide a loq cost solution to improve the life of the customers
Industry: Retail
Product Offerings: Customer goods
Generic Strategies Grid
We employ Porter’s Generic Strategies Grid to evaluate Walmart’s competitive approach
by assessing its sought advantage and market focus.
X-axis: Type of Advantage Sought — Lower Cost vs. Differentiation
Y-axis: Market Target — Broad Market vs. Niche Market
X-Axis: Lower Cost
Walmart uses the Lower Cost strategy as its main competition method
through its business model combined with price-focused strategies.
Analyzed by examining (from customer perspective):
Customer awareness of Walmart’s low prices
Perceived value in day-to-day purchases
Accessibility of savings through operational efficiency
Supply Chain Efficiency: The 160 distribution centers which Walmart
operates with its 6,100 trucks allow rapid stock replenishment to minimize
inventory holding expenses. Advanced technologies such as predictive
analytics and cross-docking implementation help the company optimize
inventory management that results in cost reduction and efficiency
improvement (Mahere, 2019).
Economies of Scale and Negotiation Power: Walmart maintains its
position as the biggest retailer through the power of its substantial buying
capacity to get beneficial supplier deals. The ability to purchase products
in bulk allows Walmart to obtain greater discount rates and pass these
savings onto buyers thus maintaining its competitive pricing (Roy, 2019).
Technological Innovations: Through substantial technology
investments Walmart implements operational optimization and cost
management for its business operations. The modern supply chain
operations enhanced by RFID tags and IoT sensors combined with
blockchain technology makes the business more efficient thus reducing
operational costs and supporting competitive pricing (He, 2023).
Y-Axis: Broad Market
The retail giant Walmart provides service to a wide-ranging customer base
known as Broad Market.
Analyzed by examining (from customer perspective):
Diversity in product categories and services available
Availability of Walmart stores or online access globally
Inclusiveness of its offerings across income levels and lifestyles
Extensive Global Presence: Walmart maintains multiple business
locations in 19 countries through its network of 10,500 stores and clubs
because it dedicates itself to delivering services across varied population
groups worldwide. The company successfully meets different consumer
requirements because of its expansive market reach (Walmart Corporate,
2025).
Diverse Product and Service Offerings: Walmart extends its
products to varied categories from groceries through electronics and
apparel alongside home goods and it delivers its services through its
pharmacies and financial departments. The variety of offered products
allows Walmart to attract an extensive customer segment thus increasing
market penetration (IOSR Journal of Business and Management, 2024).
Omnichannel Retail Strategy: Walmart creates superior customer
convenience through combining physical locations with e-commerce
services that provide online purchasing combined with drive-through
pickup and home delivery. Through their omnichannel strategy Walmart
successfully delivers service to diverse consumer segments (Jindal et al.,
2021).
Bibliography
Verma, A., Potluri, R., & Mahere, S. (2019). An incisive assessment of
Walmart’s supply chain management. Retrieved from
https://www.ijariit.com/manuscripts/v5i4/V5I4-1379.pdf
Roy, S. N. (2019). Cost leadership strategy enhancing competitiveness: A critical study on MNC retails.
Journal of Cross-functional Business Research (JCBR), 1(2), 1-10. Retrieved from
https://www.knowgen.co.in/download/1576522167.pdf
He, P. (2023). Retail supply chain systems analysis: a case of Walmart. Advances in Economics,
Management and Political Sciences, 31, 95-100. Retrieved from
https://www.ewadirect.com/proceedings/aemps/article/view/5802
Walmart Corporate. (2025). Location Facts. Retrieved from https://corporate.walmart.com/about/location-
facts/
IOSR Journal of Business and Management. (2024). Walmart's Integration Of AI, And AR Technologies.
Retrieved from https://www.iosrjournals.org/iosr-jbm/papers/Vol26-issue6/Ser-9/E2606093641.pdf
Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and Walmart: Is
the focus on delivery the best strategy? Journal of business research, 122, 270-280. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0148296320305658
