Walmart's Competitive Advantage

1001 Words 4 Pages
Looking over Walmart’s financial ratios from 2013 to 2014 has not increased tremendously in certain areas. Walmart’s gross margin profit indicates that Walmart is receiving about 25% of every dollar earned for every goods sold. The company can increase their gross profit margin by increasing prices on products that competitors do not sell, pricing products at the right price, having less discounted items, bargain with manufacturers and vendors to lower prices, and by improving their inventory systems. As the company increases their revenue, this will also improve on Walmart’s return on assets.
Moreover, the current ratio for Walmart is below one, which normally would be at a risk but for big retail industries it is acceptable. Especially for
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There are over 250 million customers that shop at Walmart each week (Walmart CEO…, 2014). Customers’ expectations are always changing. Therefore, it is important for Walmart to implement strategies and act differently to remain the number one retailer in the world. Prices, assortments, experiences, and accesses are Walmart’s four key customer dimensions the company is strategizing to improve on. The President and CEO of Walmart, Doug McMilon, is looking at the worldwide of opportunities that technology has to offer to strategically make these approaches. Walmart’s new approach through technology will allow for the company to better serve their customers to live a better life and understand the many different propositions Walmart shoppers …show more content…
Walmart values their every day low prices and wants to be the only retail store to be known for their low prices. For the company to increase their growth and not let their competitors beat them on prices. It is necessary for Walmart to drive sales growth and strengthen their business in the e-commerce and U.S. sectors by building relationships with customers. Also, controlling Walmart’s supply chain to lower costs will increase their sales growth. Additionally, the company developed a new app for consumers when shopping at Walmart. The app is called, “Savings Catcher” this app allows consumers to compare prices on Walmart’s products with competitors. Walmart will provide the consumers a gift card for any cost differences found in the products they bought. The app has refunded half of the receipts that were processed due to low prices from other competitors (Peterson, 2015). Charles Holley, the executive vice president, and chief financial officer, is carefully outlining and watching Walmart’s financial priorities and growth plans for fiscal year 2017. By actively evaluating Walmart’s portfolio and ensuring that the strategies implemented are aligned and are driving the shareholders value is key in developing seamless customer experience. Also, another strategy in increasing growth for Walmart is to utilize the $20 billion share repurchase program that was authorized by the board of directors. Holley plans only to use the $20 billion for strategic purposes over the

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