Select a business organization in your own and describe their vision, mission, business
model and strategy and culture .
Walmart vision, mission, business model, strategy and culture
Walmart is one of the largest retailers in the world (Pereira , 2023). Walmart operates 10,500
stores and clubs in 19 countries and e-commerce websites (Walmart, n.d.).Furthermore, it has
provided employment opportunities around 2.1 million associates around the world
(Walmart, n.d.).The success of Walmart has been largely contributed by it’s vision and
mission statement, whereas they have developed these two statements incorporated and
implanted with the founders core ideals (Pereira , 2023).
The Vision statement of Walmart is “to be the destination for customers to save money, no
matter how they want to shop.” (Pereira , 2023). And the mission statement is “to save people
money so that they can live better.” (Pereira , 2023).
Their vision statement implies that they want to become the retail business which provide
products at the lowest price among the other competitors in the department stores and retail
markets. In other words, it implies that they want to become the leader in retail market in
terms of creating a competitive edge by helping customers to save money.
Their mission statement indicates the way that they are going to achieve their vision. It
demonstrates that they will save the customers money by providing the lowest priced goods
and help them to live better. Furthermore, Walmart’s reports have stated that this mission
statement has helped families to adequately stretch their salaries to allow them to provide for
their families (Pereira , 2023). Therefore, it can be depicted that their vision has been
successfully achieved by their mission to create attractive price points for their customers.
The business model of Walmart makes money from three segments: Walmart U.S., Walmart
International, and Sam’s Club (Goel, 2022). The business model of Walmart has been
developed based on keeping it’s “prices as low as possible” so that can be accessible to entire
population (Pereira , 2023). In order to achieve this Walmart purchase in bulk or large
volumes from a large network of suppliers that will ultimately guarantee a bargaining power
that allows them to reach the lowest possible price (Pereira , 2023). Moreover, their business
model has been built based on a strategy called “differentiate on Access” which has enabled
customers to access by small-format stores, with fresh food , digital marketing platforms and
other services such as being the only American retailer to have its own pharmacy stores and
clinics, which offers preventive health care checkups and wellness products (Pereira ,
2023).Additionally, Walmart invests heavily in a diversified products and brands, from local
products to international names and in order to secure customer retention Walmart has a
strategy to deliver a customer experience (Pereira , 2023).
The competitive strategy of Walmart is based on cost -leadership and this strategy allows
Walmart to achieve their vision to become a low-cost producer of retail services and related
products (Ferguson , 2023). Therefore, Walmart competes with it’s competitors based on low
selling prices to attract more sales. Low prices are a main selling point of the retail business
(Ferguson , 2023). Thus, Walmart utilize different methods such as automation and related
technologies, minimizing the expenditure on human resources to maintain their low-cost
strategy (Ferguson , 2023). Moreover, in order to create a competitive edge by cost leadership strategy, Walmart has reduced costs through process efficiency and management
approaches. And Walmart imports low-cost goods from China and other countries to ensure
that they will be able to give the promised value to their customers (Ferguson , 2023).
This cost-leadership strategy reflects Walmart is going to achieve their financial advantage
and competitive advantage in more efficient manner. Walmart’s vision and mission statement
has been successfully incorporated in the establishment of their competitive strategy, in terms
of using low prices to make Walmart to become the shopping destination for the target
customers.
Walmart’s organizational culture consists with four main components such as Service to
customers, respect for the individual, strive for excellence and action with integrity
(Lombardo , 2023). These components also known as the Walmart’s beliefs. The employee
behaviour is guided by these 4 components and these factors further determine the capability
of the Walmart to provide value in their retail services. In their business model, they have
stated that providing a promising customer experience is one of their strategies, Therefore,
prioritizing the customers in their operations is a key to achieve customer retention and
achieve their ultimate vision. Walmart also recognizes the contributions of each employee to
the success of the business (Lombardo , 2023). They respect the individual employee insights
and ideas. Moreover, Walmart appreciate the employee contribution, team and department
contributions towards the success of their performance. These activities motivate the
employees to provide more efficient service to the customers which will directly lead to
achieve their desired vision. Furthermore, Walmart promote a culture filled with honesty,
fairness, and neutrality in decision-making processes (Lombardo , 2023). These 4 cultural
aspects also have been developed based on reaching the Walmart’s vision and mission
statement that allow them to secure and nurture their position in the competitive environment
by creating a competitive edge.
References
Business Strategy Hub. (n.d.). Walmart Business Model | How does Walmart Make Money ?
Retrieved February 10, 2024, from Business Strategy Hub Web site:
https://bstrategyhub.com/walmart-business-model/#Walmarts_Business_Model
Ferguson , E. (2023, July 5). Walmart’s Generic Competitive Strategy & Growth Strategies.
Retrieved February 10, 2024, from Panmore Institute Web site:
https://panmore.com/walmart-generic-competitive-strategy-intensive-growthstrategies
Goel, S. (2022, December 1). How does Walmart make money: Business Model & Supply
Chain Strategy. Retrieved February 10, 2024, from The Strategy Story:
https://thestrategystory.com/2022/12/01/how-does-walmart-make-money-businessmodel-supply-chain-strategy/
Lombardo , J. (2023, July 22). Walmart’s Organizational Structure & Company Culture.
Retrieved February 10, 2024, from Panmore Institute Web site:
https://panmore.com/walmart-organizational-structure-organizational-culture
Pereira , D. (2023, May 3). Walmart Mission and Vision Statement. Retrieved February 10,
2024, from The business model analyst: https://businessmodelanalyst.com/walmartmission-and-vision-statement/
Walmart. (n.d.). About. Retrieved February 10, 2024, from Walmart Web site:
https://corporate.walmart.com/about