Essay on Walmart Business Model Study

3994 Words May 6th, 2013 16 Pages
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
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Meanwhile Walmart International is consist of more than 4,000 stores and 800,000 employees in 14 different countries (Basker, 2007)

Figure 1. Net sales in 2010 were a record $405 billion. (Walmart Annual Report, 2010)

M
$405 billion sales (2010)

Sales % by segment
WM International Sam's Club 24.7% 11.5%

63.8%

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Yuansheng LI - (IJAEBM) INTERNATIONAL JOURNAL OF ADVANCED ECONOMICS AND BUSINESS MANAGEMENT Vol No. 1, Issue No. 2, 093 - 097

2. Walmart’s Business Model “A business model describes the rationale of how an organization delivers, captures and creates value”(Osterwalder & Pigneur, 2010:3). Although Johnson et al.(2008) considers only four key elements of the business model, the analysis of Walmart’s Business Model will follow Osterwalder and Pigneur’s (2010) Nine Building Blocks.

Key activities The key activities which are needed to run Walmart’s business model are:  Purchasing goods  Their delivery  Total cost control Other activities would be to create products that will cover needs of a specific customer segment and to control the brand, which has been developing lately. Walmart’s technological edge is in its inventory control, logistics, and distribution (Basker, 2007). The ability to move products place to place quickly and efficiently keeps the costs down as well as the time system in combination with logistics force permits Walmart to have accurate time information of the products in the stores shelves that allows

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