The Inexorable Rise of Walmart 1988 to 2016 Case Solution

2. VRIO Analysis

i. Value

Walmart’s large scale of operations and massive revenue generation is a highly valuable core competency that the company possesses. The highly profitable company can take advantage of economies of scale and provide products and services to its customers at cheaper rates than its most of its rivals, as Walmart can share its fixed costs over many different products in order to reduce prices and make shopping more affordable for its customers. Due to Walmart’s unrivalled profitability, the company has extended its services to 24 countries located in different areas of the world since the last 3 decades and is capable of further global expansion to boost its revenue generation to new heights. Very importantly, the corporation’s tendency to acquire goods from its suppliers in bulk quantities is supported by its supply chain, which is affordable due to its huge profitability and operational budget. Being a market leader in terms of revenue and a well-recognized brand, Walmart takes advantage of its brand image to enhance its bargaining power with its suppliers. 

ii. Rarity

Walmart’s control over global retail and wholesale is quite rare and uncontested. The company has monopolized the retail industry to a certain extent due to its unrivalled revenue worth $482 billion, particularly within America and Mexico.