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What is the business model of Walmart

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Walmart business model




Walmart Inc. is one of the biggest branded multinational retail chain. It is an American branded company which works or operates in different countries giving the service of department stores, grocery stores and supermarkets in a very discounted pricing. It has spread it's services in over 27 countries. It has also acquired Flipkart in $16 billion and this deal is considered as the biggest deal in the field of e-commerce in the whole world.


Walmart works on a interesting unique selling proposition (USP) i.e. providing products at a cheaper and the best rate to the consumer than what is available in the markets in the retailer shops. Walmart is able to sell the products on such an interesting price as they excludes or in other words eliminates the middle man from in all the distribution chain i.e. all the distribution channels in business and so is able to provides benefits to their consumers by providing them the products and other commodities  and services with the lowest and best prices, which makes them best in their business.

Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Walmart, leader in retail market segment sell almost everything, it has a revenue of   $485 billion in year 2015.

Even if you wish to buy some used furniture you can find many amazing deals and offer in Walmart.

Walmart was recently in news as it has made deal with Flipkart and acquired it, which was one of the biggest acquisition of that year.

All over the world Walmart has around 11000 stores in 27 countries with about 2.2 millions employees and that make Walmart one of the biggest employer in the world.

Walmart operate through 3 business segments which include Walmart U.S., Walmart International and Sam's club .

The company has different types of retail format through which it made their products available to the customers.

Walmart has basically 3 pillars on which it lead the retail segment market, further its EDLC and EDLP strategy gives a tough challenge to its competitors.

  1. If we talk about first pillar which is Lead on Price strategy as the name suggest the company tries to lead on price, they focus on supplies which proves to be the big cost reduction for them.
  2. The next strategy or pillar is they make investment to make their customers satisfied and happy.
  3. They try to match the demand of the local market needs, and that a reason why they have a large varieties across physical and digital channels.

Walmart earn through two methods one is through product and other is through the services provided by it, if we look at the product part Walmart sells products related to grocery, Health and wellness, Entertainment, etc.

Services through which they generate revenue is:

  • Financial services.
  • Mobile streaming services.
  • Clinical services.
  • Health insurance services.