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Walmart

To help people save money and live better by becoming the most trusted omnichannel retailer



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Align the strategy

Walmart SWOT Analysis

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To help people save money and live better by becoming the most trusted omnichannel retailer

Strengths

  • SCALE: Unmatched retail footprint with 10,500+ stores globally
  • LOGISTICS: Advanced supply chain serving 90% of US population
  • PRICING: Continued leadership in everyday low price positioning
  • OMNICHANNEL: Seamless integration of physical/digital channels
  • DATA: Vast customer insights from 220M weekly global shoppers

Weaknesses

  • LABOR: High turnover rates impact operational consistency
  • TECH: Significant tech debt in legacy systems still exists
  • EXPERIENCE: Inconsistent in-store customer experience ratings
  • INNOVATION: Slower innovation cycle compared to pure e-tailers
  • MARGIN: Thin profit margins vulnerable to cost fluctuations

Opportunities

  • HEALTHCARE: Expand healthcare services and pharmacy offerings
  • FULFILLMENT: Scale automated micro-fulfillment capabilities
  • ADVERTISING: Grow high-margin retail media network business
  • MEMBERSHIP: Expand Walmart+ subscriber base and benefits
  • SUSTAINABILITY: Lead in sustainable retail practices for value

Threats

  • AMAZON: Accelerating competition in same-day delivery space
  • LABOR: Rising wage pressures and unionization efforts growing
  • INFLATION: Persistent inflation impacting consumer spending
  • DIGITAL: Pure-play e-commerce competitors gaining market share
  • REGULATION: Increasing regulatory scrutiny of large retailers

Key Priorities

  • OMNICHANNEL: Accelerate seamless physical-digital integration
  • AUTOMATION: Scale fulfillment automation to improve efficiency
  • MEMBERSHIP: Expand Walmart+ value proposition and subscriber base
  • HEALTHCARE: Develop comprehensive affordable healthcare offering
Walmart logo
Align the plan

Walmart OKR Plan

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To help people save money and live better by becoming the most trusted omnichannel retailer

OMNI-EXCELLENCE

Create the world's most seamless shopping experience

  • INTEGRATION: Connect 100% of inventory systems for real-time visibility across all 4,700 U.S. stores by Q3
  • DELIVERY: Scale same-day delivery to reach 75% of U.S. population, improving delivery time by 20% by year-end
  • APP: Increase mobile app engagement by 35% through enhanced personalization and simplified checkout experience
  • UNIFIED: Implement unified cross-channel customer profiles for 90% of repeat customers to enable seamless service
SUPPLY MASTERY

Build the most responsive supply chain in retail

  • AUTOMATION: Deploy AI-powered forecasting in 85% of stores, reducing out-of-stocks by 18% while optimizing inventory
  • MICRO-FULFILLMENT: Implement 50 new automated micro-fulfillment centers, reducing picking costs by 30% and time by 40%
  • VISIBILITY: Achieve end-to-end supply chain visibility for 95% of SKUs from supplier to shelf with real-time tracking
  • SUSTAINABILITY: Reduce supply chain carbon emissions by 15% through route optimization and alternative fuel adoption
MEMBERSHIP VALUE

Make Walmart+ indispensable to American families

  • GROWTH: Increase Walmart+ membership to 30M subscribers, representing 40% growth YoY through enhanced value proposition
  • RETENTION: Improve Walmart+ annual retention rate to 85% by expanding benefits in health, entertainment, and services
  • ENGAGEMENT: Increase average monthly active use of Walmart+ benefits by 35% through simplified access and awareness
  • SPEND: Drive 25% higher average annual spend from Walmart+ members compared to non-members through exclusive offerings
HEALTH LEADERSHIP

Democratize access to affordable healthcare

  • CLINICS: Expand Walmart Health locations to 250 centers across 35 states, serving 2M+ patients annually
  • TELEHEALTH: Scale virtual care services to handle 500,000 monthly consultations at 40% below market rates
  • PHARMACY: Increase prescription volume by 20% while maintaining industry-leading customer satisfaction scores of 87%+
  • INTEGRATION: Launch integrated health records platform connecting 70% of health services with retail purchasing data
METRICS
  • Total Revenue Growth: +4.5% YoY
  • E-commerce Growth: +30% YoY
  • Comparable Store Sales: +3.5% YoY
VALUES
  • Service to the Customer
  • Respect for the Individual
  • Strive for Excellence
  • Act with Integrity
Walmart logo
Align the learnings

Walmart Retrospective

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To help people save money and live better by becoming the most trusted omnichannel retailer

What Went Well

  • ECOMMERCE: Online sales growth exceeded 28% YoY expectations
  • GROCERY: Market share gains in grocery category continue
  • WALMART+: Membership growth accelerated to 25M+ subscribers
  • INTERNATIONAL: Strong performance in Mexico and India markets
  • ADVERTISING: Walmart Connect ad revenue grew 30% YoY

Not So Well

  • MARGINS: Gross margin pressure from increased markdowns
  • INVENTORY: Higher than targeted inventory levels in apparel
  • GENERAL: General merchandise sales underperformed forecasts
  • HEALTHCARE: Healthcare initiative expansion slower than planned
  • ACQUISITION: Integration challenges with recent acquisitions

Learnings

  • DIGITAL: Digital-first customers spend 2.5x more than store-only
  • AUTOMATION: Automated fulfillment shows 40% efficiency gains
  • PRICING: Surgical price investments yield better returns
  • PRIVATE: Private brand penetration increases in inflationary env
  • LOCAL: Localized assortment drives higher conversion rates

Action Items

  • INVENTORY: Implement enhanced inventory management systems
  • AUTOMATION: Accelerate fulfillment automation implementations
  • PRICING: Refine dynamic pricing capabilities across categories
  • RECRUITMENT: Enhance frontline worker recruitment and retention
  • HEALTHCARE: Realign healthcare expansion strategy and timeline
Walmart logo
Overview

Walmart Market

  • Founded: Founded by Sam Walton in 1962
  • Market Share: ~22% of US grocery retail market
  • Customer Base: 220 million weekly customers globally
  • Category:
    Retail
  • Location: Bentonville, Arkansas
  • Zip Code: 72716
  • Employees: 2.1 million associates worldwide
Competitors
Amazon logo
Amazon
Target logo
Target
Kroger logo
Kroger
Costco logo
Costco
Dollar General logo
Dollar General
Products & Services
No products or services data available
Distribution Channels
Walmart logo
Align the business model

Walmart Business Model Canvas

Problem

  • High retail prices for everyday essentials
  • Fragmented shopping journey across channels
  • Limited access to quality products in rural areas
  • Time-consuming shopping experiences

Solution

  • Everyday low price (EDLP) business model
  • Integrated omnichannel shopping experience
  • Extensive retail footprint and delivery network
  • One-stop shopping across multiple categories

Key Metrics

  • Comparable store sales growth
  • E-commerce sales growth
  • Market share by category
  • Walmart+ membership growth

Unique

  • Unmatched scale and cost structure
  • Physical proximity to 90% of US population
  • Integrated online-offline capabilities
  • Supply chain and logistics expertise

Advantage

  • Purchasing power with suppliers
  • Data from billions of customer transactions
  • Last-mile delivery and pickup infrastructure
  • Brand trust developed over 60+ years

Channels

  • Supercenters (4,600+ in US)
  • Neighborhood Markets (800+ in US)
  • E-commerce platforms (walmart.com)
  • Marketplace third-party sellers
  • Mobile app with 120M+ monthly users

Customer Segments

  • Value-conscious families
  • Rural and suburban households
  • Small businesses through Sam's Club
  • Middle-income omnichannel shoppers
  • Convenience-seeking urban consumers

Costs

  • Cost of goods sold (75% of revenue)
  • Labor costs (15% of revenue)
  • Supply chain and logistics
  • Technology and digital infrastructure
  • Store operations and maintenance
Walmart logo
Overview

Walmart Product Market Fit

1

Everyday low prices

2

Convenient one-stop shopping

3

Seamless omnichannel experience



Before State

  • High prices for everyday essentials
  • Fragmented shopping experiences
  • Time-consuming shopping trips
  • Limited product selection

After State

  • Affordable one-stop shopping
  • Seamless omnichannel experience
  • Time-saving convenience
  • Broad product accessibility

Negative Impacts

  • Budget strain for families
  • Retail inefficiency
  • Wasted time and resources
  • Limited access to necessities

Positive Outcomes

  • Increased household savings
  • Enhanced shopping efficiency
  • Improved quality of life
  • Greater product access

Key Metrics

Comparable sales +6.4%
eCommerce growth +28%
Store traffic +4.8%
Customer retention 85%
NPS 42

Requirements

  • Price leadership
  • Omnichannel integration
  • Supply chain excellence
  • Store/digital footprint

Why Walmart

  • EDLP strategy
  • Frictionless shopping experience
  • Advanced distribution network
  • Tech-enabled operations

Walmart Competitive Advantage

  • Scale efficiency
  • Supply chain optimization
  • Data-driven decisions
  • Physical/digital integration

Proof Points

  • $1.5B+ customer savings annually
  • 10M+ daily online orders
  • 90% US population within 10 miles of store
  • 3-day delivery to 95% of US
Walmart logo
Overview

Walmart Market Positioning

What You Do

  • Provide affordable goods through omnichannel retail

Target Market

  • Value-conscious consumers across demographics

Differentiation

  • Everyday low prices
  • Vast physical footprint
  • One-stop shopping
  • Scale advantages

Revenue Streams

  • Merchandise sales
  • Membership fees
  • Financial services
  • Advertising
  • Marketplace fees
Walmart logo
Overview

Walmart Operations and Technology

Company Operations
  • Organizational Structure: Divisional by geography and format
  • Supply Chain: 11,000+ suppliers, 210+ distribution centers
  • Tech Patents: 700+ patents in retail tech & logistics
  • Website: https://www.walmart.com
Top Clients
Walmart logo
Competitive forces

Walmart Porter's Five Forces

Threat of New Entry

Low due to massive capital requirements, complex supply chains, and economies of scale needed to compete effectively

Supplier Power

Low-moderate as Walmart's scale gives it significant leverage with most suppliers, accounting for >20% of revenue for many CPGs

Buyer Power

Low-moderate as consumers have alternatives but Walmart's low prices and convenience create switching costs and loyalty

Threat of Substitution

Moderate and growing from specialty retailers, direct-to-consumer brands, and new retail models targeting niche segments

Competitive Rivalry

High rivalry with Amazon, Target, Kroger, and dollar stores intensifying competition in grocery and general merchandise

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Drive AI transformation

Walmart AI Strategy SWOT Analysis

To help people save money and live better by becoming the most trusted omnichannel retailer

Strengths

  • DATA: Massive customer dataset from billions of transactions
  • INFRASTRUCTURE: Strong cloud computing partnership with Microsoft
  • RESOURCES: Substantial capital for AI investment initiatives
  • TALENT: Growing tech talent pool in Bentonville and tech hubs
  • TESTING: Extensive retail footprint for AI implementation testing

Weaknesses

  • LEGACY: Legacy systems integration slowing AI implementation
  • CULTURE: Traditional retail culture adapting to tech innovation
  • TALENT: Competition for top AI talent with tech companies
  • ADOPTION: Varying levels of AI readiness across global operations
  • SILOS: Data siloes limiting full AI potential across business

Opportunities

  • PERSONALIZATION: Hyper-personalized shopping recommendations
  • FORECASTING: Enhanced demand forecasting reducing waste
  • AUTOMATION: Store and warehouse process automation at scale
  • PRICING: Dynamic pricing optimization balancing margins and value
  • SERVICE: AI-assisted customer service improving satisfaction

Threats

  • COMPETITION: Amazon's advanced AI capabilities in retail
  • PRIVACY: Increasing regulations around data usage and privacy
  • ETHICS: AI ethics concerns affecting customer trust in retail
  • INVESTMENT: High investment requirements with uncertain ROI
  • ADOPTION: Customer resistance to certain AI implementations

Key Priorities

  • FORECASTING: Implement next-gen AI demand forecasting systems
  • PERSONALIZATION: Scale AI-driven personalization capabilities
  • AUTOMATION: Accelerate store and fulfillment center automation
  • TALENT: Develop specialized retail AI talent acquisition strategy
Walmart logo

Walmart Financial Performance

Profit: $14.9 billion (FY 2023)
Market Cap: $405 billion
Stock Symbol: WMT
Annual Report: Available on Walmart Investor Relations website
Debt: $54.6 billion long-term debt
ROI Impact: Operating margin and comparable store sales

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