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Walmart Company’s Business Model Analysis Essay


One could hardly deny the overwhelming role Information Technology plays in the modern world. The blistering rise of digital devices, as well as the software needed to support their spread, resulted in the reconsideration of the majority of approaches used in different spheres of human activity. Their implementation into the functioning of any organization is expected to increase its efficiency and improve outcomes significantly. For this reason, it is not surprising that IT became one of the most powerful tools used in the sphere of business to acquire a significant competitive advantage and enhance different processes trying to attain better results. There are numerous examples when modern companies manage to stimulate their blistering rise by exploring IT, and Walmart is one of them.

In general, the given brand could be described as the embodiment of the innovations usage and new technologies in the sphere of retailing. The company was founded as one among many other firms that observed the tendency towards the increase in peoples demand for products and other goods and wanted to become prosperous due to the expected high incomes. However, unlike its rivals, Walmart managed to obtain a significant competitive advantage by cultivating the evolution of IT sector and its exploration for different purposes. For instance, at the moment the company uses IT to exchange information between its departments situated in different states across the USA and create the efficient model that will take into account the main consumers needs and provide all products and goods needed to satisfy them (Dudovskiy).

The wide implementation of IT into the companys functioning could also be investigated in terms of its competitive strategy that is used at the moment. Trying to guarantee the preservation of its leading position and preserve the level of customers interest at the same level, Walmart adheres to the low-cost leadership strategy that might guarantee numerous advantages. First of all, the cost of all operations is reduced because of the usage of IT to attain improved efficiency along with low costly characteristics.

Besides, being able to introduce the pattern that presupposes significant savings, Walmart is able to spend additional costs to make its competitive advantage even stronger by suggesting the lower price for some products or other services (Nash). The given strategy could be considered rather beneficial because of several important factors. First of all, the company is able to preserve its target audience by comparatively stable prices that come from the enhanced efficiency of different operations crucial for its further rise and functioning. Moreover, the strategy promotes the exploration of IT and contributes to the innovative character of the company which is extremely important for its further rise (Nash).

Altogether, one could hardly imagine the modern business without the wide usage of Information Technologies that provide numerous benefits and help to create a significant competitive advantage. Walmart also uses IT in its functioning. Delving into the companys peculiarities, we could state that the exploration of the given tool helped the brand to decrease the costs of the majority of operations and create efficient patterns that are explored to preserve low costs and satisfy consumers. For this reason, Walmart also uses innovations in its functioning and follows the main tendencies in the sphere of business trying to preserve its leading positions and create the basis for its further rise.

Works Cited

Dudovskiy, John. “Research Methodology.

Nash, Kim. “Wal-Mart Spent $10.5 Billion on Information Technology in 2015.” The Wall Street Journal.

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IvyPanda. (2020, September 6). Walmart Company's Business Model Analysis. Retrieved from https://ivypanda.com/essays/walmart-companys-business-model-analysis/

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"Walmart Company's Business Model Analysis." IvyPanda, 6 Sept. 2020, ivypanda.com/essays/walmart-companys-business-model-analysis/.

1. IvyPanda. "Walmart Company's Business Model Analysis." September 6, 2020. https://ivypanda.com/essays/walmart-companys-business-model-analysis/.


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IvyPanda. "Walmart Company's Business Model Analysis." September 6, 2020. https://ivypanda.com/essays/walmart-companys-business-model-analysis/.

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IvyPanda. 2020. "Walmart Company's Business Model Analysis." September 6, 2020. https://ivypanda.com/essays/walmart-companys-business-model-analysis/.

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IvyPanda. (2020) 'Walmart Company's Business Model Analysis'. 6 September.

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