Walmart Business Model Study

3993 WordsApr 30, 201316 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…show more content…
Key resources The key resources of Walmart classified in 3 categories. First, the physical resources which are owned by it like stores and logistics. Second its human resources, experienced managers and stores managers, and finally the company culture. Walmart culture is based on restless effort at constant self-improvement, discipline and loyalty (Fishman, 2006). Key partnership Key partnership is a strong buyer-supplier relationship in which suppliers were considered as close partners of Walmart. They also are part of the value chain of each other and it provides suppliers the chance of accessing to a large market. However it made suppliers, who wish to take advantages of its broad market, to keep their prices and costs low and therefore, suppliers give the control of their own business and negotiation advantage to Walmart (Parnell and Lester, 2008). Walmart also creates economies of scale that optimizes its cost structure. Revenue stream Walmart Revenue Streams that generated from its customer segments are basically come from retail sale, such as music downloading with fixed menu pricing. Walmart also drive revenue from selling its own brand, produces by others to cover a segment not cover by other suppliers. Moreover, it takes advantage of selling goods before paying to its suppliers. Cost

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