Walmart strategy

Author: Michael Porter (USA)
Publisher:
Publish Date: 2006-01-01
Features: In Africa, every morning when a gazelle wakes up, it knows it must run faster than a lion to survive. Every morning when a lion wakes up, it also knows it must surpass the slowest gazelle to avoid starving to death. Whether you are a lion or a gazelle, it doesn’t matter. What matters is that every time the sun rises, you must start running! – The competitive philosophy of David Glass, former CEO of Walmart.
"Operate specialty products, provide high-quality services, and don’t compete with Walmart on price." – Pricing Strategy
"Walmart’s success lies in its ability to implement plans seamlessly while maintaining high standards." – Operational Strategy
"Decentralization makes Walmart’s corporate culture competitive, and collaboration helps the company unlock its full potential." – Corporate Culture Strategy
"Sam Walton infused a sense of ownership into the company, giving every employee a collective mindset, regardless of their role." – Main Product Strategy
"Walmart has revolutionized traditional cost control standards, elevating them to an unprecedented level. Walmart’s example shows that businesses can thrive by saving costs." – Cost Control Strategy
"Walmart hires average candidates but manages to get outstanding performance from them." – Talent Strategy
"Walmart’s customer service standards remind me of the famous quote from The Three Musketeers – ‘All for one, and one for all.’" – Service Strategy
The retail industry is ruthless. Every sales plan, pricing, and promotional decision you make is watched by competitors, but Walmart achieved unprecedented success: its daily shopping receipt paper tape can be as long as 2,700 miles; in 2004, it opened a new store every day; it is the world’s largest employer. The author, who was once a senior executive at Walmart and worked under Sam Walton for many years, systematically summarizes Walmart’s seven successful strategies: pricing strategy, operational strategy, corporate culture strategy, main product strategy, cost control strategy, talent strategy, and service strategy. Walmart, which has stood the test of time in the brutal retail industry, remains a model for businesses to learn from.