Walmart’s Sustainability Strategy

Question 1: What are the isolating mechanisms preserving Wal-Mart’s competitive advantage in the US market? (use readings case 7)

CEO Lee Scott announced that Wal-Mart was launching a sweeping business sustainability strategy to dramatically reduce the company 's impact on the global environment and thus become "the most competitive and innovative company in the world." He argued that "being a good steward of the environment and being profitable are not mutually exclusive. They are one and the same." Scott also committed Wal-Mart to three aspirational goals: "To be supplied 100 percent by renewable energy, to create zero waste, and to sell products that sustain our resources and the environment." To meet those goals, Wal-Mart would seek to transform its supply chain, in cooperation with suppliers and environmental nonprofit organizations. In addition, Mr. Scott said that as the largest buyer of manufactured goods in the world, Wal-Mart has the power to encourage its more than 60,000 suppliers to adopt environmentally conscious business practices. "Our most direct impact will be on our suppliers," he said. "If we request that our suppliers use packaging that has less waste or materials that can be recycled, everybody who buys from that manufacturer will end up using that package." As an example of how the company can encourage better packaging, Mr. Scott said he would ensure prime

For the innovation in the products, the Walmart must adopt the technology and this will help the Walmart in the innovation in the products. For the analysis and the growth of the company, Walmart has overview on four essential strategies which include market development, innovation, product development and market penetration. It is necessary for the Walmart to change the line of its products and switch to the lifestyle products. Due to the change in the taste and fashion, customers demand new products having the new features (Feizizadeh et.al, 2013

Not only Wal-Mart is saving money for consumers, Wal-Mart creates jobs, improve economic conditions and overall improve the areas in where they operate. Wal-Mart usually open in rural and down trotted areas. A perfect example is Carol Foote. She and her friend Paula Beaulieu started a petition to open a

Due to increasing environmental imbalances, it is necessary for firms to achieve competitive advantages in the area of environmental convergence as well. Wal-Mart is putting continuous efforts from a long time for environment sustainability and energy conservation. It also received Aspen Institute Energy and Environment award for Corporate Energy Efficiency in 2009. Here are a few steps that Wal-Mart has taken to encourage environmental sustainability:

Wal-Mart uses its resources in research since before (2011-2012) for the sole purpose of coming up with new ideas and new ways to sustain itself in the local and global community. Locally it provides electricity in stores from solar panels and wind turbines. “Wal-Mart has taken strides to obtain its sustainability objectives. It has opened two environmentally friendly stores in McKinney, Texas, and Aurora, Colorado.” The company hopes that these experiments will conserve natural resources, save energy, and reduce pollution. In addition, Wal-Mart is attempting to reduce fossil fuel. Its fleet of hybrid trucks is a new technology for going “green (Ferrell, Fraedrich, Ferrell, 2011).” Similarly, Wal-Mart is “Currently working on four main green areas: waste improvement and recycling, natural resources, energy, and social/community impact. Wal-Mart’s long-term goals are to be supplied 100 percent by renewable energy, create zero

A. The Wal-Mart China work in co-operation with the government and employees in advancing sustainability. The best practices known by Wal-Mart should be shared with government and employees to reduce carbon footprints. Also Wal-Mart should abide by the regulations of the government pertaining to sustainability and also Wal-Mart should voluntarily adopt best practices which lead to greater sustainability. The employees should be trained for reducing carbon footprints resulting from their actions and should be rewarded to encourage them to continue addressing sustainability issues.

The generic strategy that Wal-Mart employs is mainly a low-cost leader. This is evident by the company’s purpose: “saving people money so they can live better”. Wal-Mart believes that having a lower price matters to their customers. They continuously seek to reduce costs throughout their company, which will in turn reduce costs for

Wal-mart may be a topic of controversy but they also have a huge effect on the scale of global social responsibility.

Yes, I think that Wal-Mart is exceeding to become more sustainable. Wal-Mart is one of the top corporations and it is continuing to grow exponentially. There are three sustainability goals that Wal-Mart has put out to the public, and currently they are meeting every one of them. Among Wal-Mart’s sustainability goals are its intentions to be supplied entirely by renewable energy, create no waste, and sell products that sustain people and the environment (Ferrell, Fraedrich, Ferrell). At the end of 2013 Wal-Mart had more than 300 energy projects which provided more than 2.2

Wal-Mart stores serve millions of customers globally each day – and they do their best to make certain that the products on their shelves are a sign of the diverse needs and wants of their customers. Wal-Mart states they are focused on four strategies and the top one is becoming truly global. (Wal-Mart Stores Factsheets). In 2010, Wal-Mart reduced the plastic bag waste across their global operations by 47.95 million pounds, or approximately 3.5 billion bags. This represents a 21 percent reduction from our 2007 baseline. In Chine in 2010 reduced the waste by 84percent using 2007 as a baseline. Wal-Mart wants to stay on top globally where economics

Wal-Mart should project a community friendly, environment caring and employee welfare seeking brand image to combat. Emerging threats. Investment in sustainability initiatives like solar energy and recycling could be possible opportunities.

Wal-Mart also has a green goal. It claims that their environmental goal is to be supplied 100 percent by renewable energy, to create zero waste and to sell products that sustain our natural resources and the environment(Wal-Mart website 2008).

Perhaps this is giving Walmart a free ride in the media/marketing as being sustainable without any parties doing their due diligence to verify the actual numbers. As Senge explained, perhaps “Walmart is using going green to offset negative press for treatment of its employees” due their recent lawsuit losses and settlements (Senge, 2010, p. 114). Although Walmart should be commended for its sustainability portfolio, I believe the results of their goals need to be looked at from proportional aspect as well as how/where Walmart sources their products.

Wal-Mart now has to rebuild their images, procedures on how they conduct business nationwide and how the use ethical business practices. The New York time article reported, “Wal-Mart announces new ethical and environmental principles complete by 2012”. (Robinson, 2008)