Barnes and Noble How Walmart Became The World's Largest Retailer And Critical Success Factors Behind Walmart's | Hamilton Place (2024)

This essay sheds light on how Amazon became the world's largest retailer, identifies the critical success factors behind Walmart's success as the world's largest retailer, demystifies Walmart's growth strategies for long term revenue growth, and reveals the future outlook of Walmart in the digital era. Amid the early 1990s, Walmart achieved the ineffably stupendous feat of becoming the world's largest retailer. Walmart was able to become the world's largest retailer for a multitude of reasons. Walmart's success as the world's largest retailer in the digital era is attributed to Walmart offering a broad range of products, Walmart having ample competitive advantages, Walmart offering an exorbitant amount of products at competitive prices, Walmart offering a convenient shopping experience, Walmart having significant market share in an exorbitant amount of international retail markets, and Walmart offering a generous return policy. Customers are inclined to shop at Walmart in order to be able to procure items for low prices and in order to be able to conveniently buy all the items they need and want for the week during a single shopping session at Walmart. Walmart has also been able to streamline their business operations by installing self-checkout lanes at their stores, by ushering in self-driving floor scrubber into their stores, by providing a streamlined online shopping experience, by leveraging highly efficient supply chain management systems, by leveraging "electronically backed vendor managed inventory (VMI) systems", by leveraging a retail cross-docking strategy, and by having their employees leverage the my productivity application which allows their employees to access inventory management data and sales trends in real time so that they can more efficiently manage their inventory. The efficacious implementation of Walmart's supply chain management strategy have allowed Walmart to significantly reduce its inventory ordering costs and inventory carrying costs which allows Walmart to be able to offer their products at highly competitive prices since they can afford to sell them at lower profit margins then competitors. Walmart has also been able to minimize their overheads costs and labor costs which has allowed them to be able to operate their stores extremely profitably. Walmart became the world's largest retailer for a multitude of reasons. Walmart became the world's largest retailer primarily because they were able to offer a broad range of products, were able to efficaciously leverage their ample potent competitive advantages, were able to rapidly expand into an exorbitant amount of international retail markets, were able to offer an exorbitant amount of products at competitive prices, were able to provide a convenient shopping experience, were able to remain open for long business hours, were able to efficaciously leverage highly efficient supply chain management systems, and were able to efficaciously leverage "electronically backed vendor managed inventory (VMI) systems". Walmart became the world's largest retailer also because it had achieved unparalleled brand recognition, strong brand loyalty, and robust brand equity. Customers relish shopping at Walmart and are inclined to splurge on buying products when they enter Walmart stores partially as a result of these retail stores have strategic retail store layouts to entice sales. For instance, when customers enter Walmart to purchase essential frozen foods, such as frozen vegetables, they often have to travel to the very back of the store in order to be able to buy frozen foods in which they pass by a myriad of other isles that are replete with enticing merchandise when they are traveling on the walkway to the very back of the store to retrieve frozen foods. The end caps of the isles are also often replete with merchandise and the merchandise on the end caps is often within arm's reach when traveling traveling on the walkways. Customers are often inclined to take a detour on their journey to getting frozen foods by perusing through nearby isles that are replete with merchandise in case they stumble upon any products that they feel inclined to impetuously buy. Although retail store layouts may vary from Walmart to Walmart, merchandise is strategically laid out to entice sales. When strategic store layouts provide the store layouts for retail stores then it can culminate in significantly prolonging the shopping experience, especially if you have to go all the way to the back of the store to buy essential items, such as frozen vegetables. Companies prefers if the customers shopping experience can be prolonged for as long as viably possible since customers are all the more inclined to buy more items and make impetuous purchasing decisions, the longer that they remain shopping at a retail store. Walmart knows how to efficaciously merchandise their products in order to be able to generate high sales volume.