We all know Walmart, the American multinational retail corporation, especially if you have been to the US. The immensity of the store, the feeling you get when you are inside and see products ranging from toys, to laundry detergents to guns. When I was a kid it felt like a day out, I was fascinated by all the different products they offer. You can surely say that there is something for everyone. Being there physically and enjoying the vast amount of area you can cover is a great experience.
Walmart is a family-owned business, headquartered in Betonville, Arkansas, and is controlled by the Walton family. It is the largest grocery retailer in the US. Walmart extended operations overseas. Operations were successful in the United Kingdom, South America, China and Canada whereas operations in Germany and South Korea failed.
Sam Walton, the founder of Walmart said the following “The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.” This statement describes exactly how I experienced Walmart in the past.
Walmart wants to change its course by spending more on e-commerce while slowing down on opening new stores. The reason why they are doing this is to catch up with Amazon and thus become a more significant competitor. CEO of Walmart, Doug McMillon, said that the company will look more like an e-commerce company in the future. Walmart made a serious start with this by closing a 3.3 billion dollar purchase for Jet.com, an online retail startup, and it also doubled the investment in JD.com, the 2nd biggest e-commerce player in China.
Walmart has weaknesses that it needs to attend to in order to compete with their biggest competitor, Amazon. Walmart needs to expand their warehouses or increase the quantity owned. They should also be looking for ways to reduce shipping costs, this can be accomplished by working with Jet.
E-commerce has many advantages to organizations, consumers and society, many to which I agree. For me personally, I would prefer going to an actual store where you actually have a feel of products. The experience of going to Walmart and looking around, even though you are not looking for something specifically, is great and will be lost if you shop online. That is why I will always be a fervent supporter of shopping in actual stores.