Topic > Case Study of Walmart Stores, Inc. - 1478

Wal-Mart Stores, Inc. is a renowned retail hypermarket that sits at the top of the Fortune list at number one. It would be very difficult to find an individual who is not aware of Walmart's position as the largest physical retail chain in the world. The company has thrived in recent years and continues to grow by effectively managing its store operations and distribution strategies. One of the major factors that have contributed to the company consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But perhaps most revolutionary was the unprecedented coordination practice with suppliers (Chekwa, Gross profit during the year 2015 was actually an increase of $10 billion compared to fiscal year 2014 (University of San Francisco, 2015).For the past six years, Walmart continues to generate these types of numbers, which represent growth increases, again and again. The company's revenue has been generated by more than 4,500 stores in the United States alone, supported by a chain of supply which rose from number 14 to number 13 onwards. Annual ranking of the research and analysis company Gartner (University of San Francisco, 2015). It is clear which elements of their strategy have proven effective. These major supply chain components that have shaped Walmart's success in recent years are buyer bargaining power (one of Porter's five forces), a focus on experience. overall customer experience and investments in emerging technologies along with the implementation of these technologies in their business. Over the past two years, Walmart has been enhancing its e-commerce operations and deriving much of its revenue from online sales (Aronow & Burkett, 2015, p. 20). Gartner Inc. describes Walmart as a "supply chain pioneer" that has continued to push into e-commerce and expanded investments in multi-channel drive-thru pickup centers and "click-and-collect" grocery service " offered in some of its stores. stores (Aronow & Burkett, 2015, p. 20). One of the components of Walmart's supply chain that is heavily relied upon for its success is the continuous improvement of supply management as a whole, particularly within the e-commerce division. According to an article on the website of logistics company Cerasis, “Walmart has not only excelled over the decades in traditional supply chain management, but… also focuses on continuous improvement by investing more in emerging technologies to gain share largest in the e-commerce market..." (University of San Francisco, 2015). One concept that our class had discussed over and over again throughout the semester was the concept of continuous improvement. Any organization or business is constantly focused on continuously improving its business for the better. For Walmart, they believe that taking the early step of investing in emerging technologies will help differentiate itself from the competition