Walmart Case Study

Walmart, a discount retailer, was started by Sam Walton in the small town of Rogers, Arkansas, in 1962. By 2014, Walmart had become the worlds largest retailer, with more than $476 billion in revenues and 10,000 stores. As the new century began, Walmart faced new competitors and new challenges. Walmarts success in the future would require responding effectively to the growing trend toward online purchases and the emergence of Amazon.com as a major competitor.

This case will explore Walmart’s evolution and how its unique approach to retail and operations management has enabled it to be successful, even as new challenges come its way.

As you read the case below, consider how you’d answer the following questions:

1. Why has Walmart been successful? What is the single most important factor that has contributed to Walmarts phenomenal success?
2. Why exactly are Walmarts costs lower than its competitors? Examine each element of the cost structure (e.g., Cost of Goods Sold (COGS), labor, rent, advertising, distribution, technology, etc. as a percentage of total sales) and assess where Walmarts costs are lower than competitorsand why.
3. What should Walmart do to respond to the emerging trend of online purchases, and more specifically to the threat of Amazon.com as the dominant competitor?

To Receive Full Points:

• AI Guidelines: You are welcome to use AI tools (such as ChatGPT, Bard, or other platforms) to support brainstorming, outlining, or fact-checking. However, you must disclose how you used AI in a short note at the end of your paper (e.g., I used ChatGPT to help organize my outline and suggest additional references). Failure to disclose AI use will result in a deduction.
• References: Use at least 5 credible references (academic journals, company reports, business press such as The Wall Street Journal, Harvard Business Review, Bloomberg, or government/industry data sources). In-text citations and a reference list in APA format are required.
• Dataset Requirement: Incorporate at least one dataset or chart (e.g., Walmart vs. Amazon revenue growth, cost structure comparison, or e-commerce adoption rates). You may use Statista, IBISWorld, U.S. Census Bureau, or other reliable data repositories. Be sure to explain how the dataset supports your argument.