Walmart: A New Era of Growth

Name: Walmart: A New Era of Growth (English version)
SKU: CCW080408

Meier, Stephan; Oberholzer-Gee, Felix

Product #:CCW080408

Supplier:Columbia Business School

Discipline:General Management

Setting:2024

Details:Case (PDF) • 26 pages • 2008-07-30 (Rev: 2024-08-27)

Subjects:

Corporate strategy Competitive advantage Marketing strategy Strategy Competitive strategy Marketing Leadership and managing people Management

Industries:

Goods, trade, and consumer services

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$9.71

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In early 2020 Walmart Stores, Inc., the world's largest retailer, faced several strategic challenges. The company had just been ranked number one on the Fortune 500 list, but its growth rate lagged its competition. International expansion had turned out to yield uneven results, and Walmart lagged in online sales. To foster continued growth, the company was considering a strategic shift: looking outside the store's traditional customer base to attract more upscale consumers. Walmart's past efforts to move upscale had not been successful. What are the strategic risks and benefits of the company's latest efforts to improve sales?

Learning Objectives

The case allows students to understand how Wal-Mart implements its low-cost strategy. The discussion focuses on economies of scale and density, the link between sunk cost and market structure, as well as the role of diversification in explaining the company's financial success. Students will also consider the extent to which the strong alignment of activities poses a barrier to future growth.