Walmart is one of the major and more important retailers around the globe operating in more than 11,000 stores in over 25 nations (Hunt, Watts & Bryant, 2018). The company was inaugurated in 1962 and has achieved significant progress due to its succesful business strategy (Hunt, Watts & Bryant, 2018). Walmart operates both physical and online stores to enhance convenience for its global consumers.
Don’t waste time! Our writers will create an original "Walmart negotiation strategies" essay for you whith a 15% discount.Create order
The company realized annual revenue of $500 billion in the fiscal year, of 2017 and boasts over 2.1 million employees from different parts of the world (Hunt, Watts & Bryant, 2018). Although Walmart is a leading company, it operates in a highly competitive market and shares its customers with competitors such as Tesco, Costco, Woolworths, Carrefour, IKEA, Amazon, and Target (Hunt, Watts & Bryant, 2018). In any case, Walmart has possessed the capacity to keep up its cost authority procedure that enables the organization to hold clients by offering quality merchandise at moderate costs.Walmart’s slogan, “Everyday low prices,” gives the company a competitive advantage in the retail industry. This low-price strategy allows Walmart to capitalize on its size to realize economies of scale. The company has depended heavily on cost leadership to become a household name across the globe. Walmart’s business strategies have also been centered on sustainability to conserve the environment and minimize indirect costs. In addition, Walmart’s business strategies aimed at establishing a one-stop shopping by providing a broad assortment ranging from grocery to household wares. Walmart has over 60,000 diverse suppliers and it incorporates different negotiation strategies to bargain. Walmart aims at empowering its suppliers thereby establishing great partnership to guarantee the quality of goods.
Walmart has maintained its traditional mission statement,” We save people money, so they can live better” (Hunt, Watts & Bryant, 2018). This mission statement is geared towards lowering the cost of living to enable people to make extra savings to enhance their lives. Walmart’s mission statement appeals mostly to the middle-class consumers who make up a large percentage of the overall customers in the retail industry. Walmart’s vision statement aims at provided quality products at low costs while maintaining sustainable production.
In order to maintain its cost leadership strategy, “Everyday Low Prices,” Walmart is compelled to incorporate various negotiation strategies with its suppliers to purchase large quantities of products at lower prices. The bargaining power of suppliers in the retail industry is relatively lower due to the existence of numerous suppliers (Lianos & Lombardi, 2016). These suppliers also engage each other in stiff competition in order to win the tenders and supply their goods to the retailers. Some of the suppliers are compelled to offer their products on a discount to attract retailers (Lianos & Lombardi, 2016). Thus, this means that a retail company such as Walmart has an advantage over the suppliers and can influence their decisions significantly including their prices.
We will send an essay sample to you in 2 Hours. If you need help faster you can always use our custom writing service.Get help with my paper