Business Model & Ownership Structure

Overview: Walmart, is an American multinational retail corporation that operates a chain of discount department stores and warehouse stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It has over 11,000 stores in 27 countries, under a total 71 different brands. The company operates under the Walmart name in the US and Puerto Rico, It operates in many different countries with different names. . The revenue was reportedly US$ 476.294billion in 2013 which makes Walmart one of the most successful and truly and American giant.Business Model: Wal-Mart stresses primarily on their Everyday Low prices (EDLP) pricing philosophy, in which their price items at a low price every day that builds & maintains customers trust in their pricing. Since they employ both the clicks and bricks and bricks and mortar methods to market their products, consumers get to choose their products either the traditional way or online anytime of the day. Though Wal-Mart has not advertised in Advertising, as many of its competitors do, the trust people have built on the Wal-Mart brand has taken them far from their competitors. The reason of Wal-Mart success is its massive network and strong logistics and channel management, Wal-Mart also uses the most enhanced and smart inventory management system that runs on the most expensive and powerful system named MPP (Massively Parallel Processor) with also the first one to use the RFID system in inventory management makes Wal-Mart stand out against others.B2B Single firm network Business Model: SAMS CLUB segment of Wal-Mart supports small businesses. Its main focus in this segment is to create its own network of trusted partners to coordinate supply chains and provide exceptional value on brand-name merchandise at Members Only prices. B2C E-Tailor Business Model: Wal-Mart uses clicks and bricks methodology to provide millions of its customers online version of its retail store,Walmart combines a Cost-Leadership and Differentiation strategies because: I. Allowed to achieve a large scale and an efficient supply chain. II. Has its own low-cost brands, like Great Value.III. A unique cost structure that allows Walmart to establish the lowest prices and achieve competitive advantage. (Best value/price combination)IV. Present in many different industries and markets with efficient distribution channels.V. Very difficult strategy to imitate by offering a broad quantity of products at a low price.BroadDifferentiationCost Leadership

DifferentiationCostSCOPENarrowDifferentiation FocusCost Focus

Sources of Competetive Advantage

Ownership StructureWalmart was founded by Sam Walton and who owned the major stake in the company, despite his death in 1992 the Walton family still owns the Walmart at large and is wealthier than the Top billionaire like Bill Gates. The percentage of Waltons ownership is above 50%. As of Today three family members serve on Walmart's board of directors; Rob is the chair, and sits on the board with his brother Jim and his son-in-law, Greg Penner, whereas the current CEO and President is Doug McMillon.

Direct Shareholders

Institutional ShareholdersVanguard, SSC and Berkshire Hathway hold the most part of the institutional stocks.

Source: Business Management, Wikipedia, SlideShare, Google, Yahoo Finance, Walmart Inc.