Walmart serves as the biggest and topmost retailer in the international retail sector with estimated sales of approximately $482.2 billion by the end of 2015 financial years. The company’s success revolves around various approaches and elements, whereas its effectiveness prevails whereby it managed to serve more than 250 million clients on a weekly basis. It operates more than 1050 retail stores globally in around 26 countries while having over 71 brand identities together with corporate banners. Nonetheless, the most vital fact concerning Walmart revolves around its supply chain as well as distribution approach, which also serves as the basis on the industry. The major reason is the idea that no other corporate organization in the international marketplace possesses a similar business portfolio size in such a differentiated market environment. Research studies also reveal that the distribution strategy that Walmart designs as well as executes serves as its driver to success as well as the major force driving competitive advantage (Walmart.com, 2018) . Thus, the paper discusses Walmart’s overall distribution strategy, distribution channels, why the choice is effective and offers a competitive advantage, and an alternative to the distribution strategy of the company.
Distribution Strategy
For Walmart’s distribution strategy, the organization relies on highly centralized and automated units of distribution that operate 24/7 throughout the year. To ensure that it serves the customers from the different targeted regions are served in an effective manner, the organization has diverse distribution centers in each region where it operates. For example, when it comes to the U.S., it has over 45 units of distribution, which aim at importing goods from diverse parts of the world, hence making sure that every store has the demanded products. The company has an additional 150 distribution centers, which support the 45 distribution units while contacting retail units within the region directly. Additionally, it is vital to realize that every distribution center addresses the requirements of between 75 and 100 retail stores (Pratap, 2018) . For this form of a distribution approach, it can be referred to as a hierarchy, while it functions in a systemized and unique manner to make sure that the products flow without efforts from suppliers to clients.
Delegate your assignment to our experts and they will do the rest.
When looking at the international context of distribution, the company has approximately 158 distribution centers that serve as the major drivers to the success of the company. As opposed to the case of other retailers worldwide, the distribution network of Walmart also serves as the biggest and most effective worldwide when it comes to the retail sector. The logistics activities of the company are carried out with the assistance of more than 54,000 trailers and over 6,459 tractors, which over 7,000 drivers operate. Additionally, Walmart makes sure that every distribution center associate with it has modernized and high-tech systems for moving thousands of cases daily. Moreover, every distribution center caters for an average of between 90 and 100 stores (Bhasin, 2018) . These are located at strategic points to facilitate in offering rapid responses to the retail stores, which are connected to it.
Distribution Channels
Having over 11,695 stores in over 28 nations by March 2018, Walmart has distinct distribution channels, including supercenters, discount stores, neighborhood markets, and Walmart.com. When it comes to the discount stores, they revolve around the provision of general merchandize that features general and value pricing whereas the supercenters are devoted to providing overall general merchandize and grocery lines. A large number of the supercenters usually undertake their operations on a 24-hour basis (Lu, 2014) . The neighborhood markets provide pharmaceuticals, groceries, and general merchandize.
In the case of the Supercenters, Walmart adopted this type of a store model in 1988. These stores encompass an area of around 182,000 square feet while that employ approximately 300 associates. As Walmart stipulates on its website, the supercenters usually offer a one-stop shopping encounter while they merge a grocery store with bakery, fresh produce, dairy products, and deli with apparel, electronics, home furnishings, and toys (Lu, 2014) . Most of the stores remain open on a 24-hour basis while they might also comprise of specialty shops, such as nail and hair salons, banks, vision centers, as well as restaurants.
When it comes to the discount stores, the initial discount store that Walmart opened was based in Rogers, Ark. Presently, there exists hundreds of them, which are spread all over the U.S. In the case of the discount stores, their size is smaller when likened to the supercenters. Every discount store employs approximately 200 associates while it has a variety of items of offer. They occupy an area of around 106,000 square feet. The stores are well arranged, brightly lit, and have shopping spaces that appeal to customers, since they are aimed at maximizing the shopping pleasure of the customers (Walmart.com, 2018) . The diverse products that these stores offer comprise of apparel, electronics, home furnishings, toys, beauty and health aids, as well as health aids among others.
For the neighborhood markets, they reflect Walmart’s goal of ensuring that it addresses the needs of the customers on a broader scale while not comprising on convenience. In the event of the neighborhood markets, they serve as another category of stores selling various kinds of products while they are designed while considering community needs, such as those looking for affordable groceries, pharmacy, as well as merchandise. Every market’s size is around 38,000 square size while it comprises of 95 associates. Whereas they are smaller compared to the prior store formats, the neighborhood markets also address several vital community needs (Lu, 2014) . They provide diverse ranges of meat, fresh produce, dairy products, deli items, bakery, beauty and health aids, household supplies, as well as a pharmacy.
Furthermore, Walmart serves as among the fastest growing e-commerce company globally. It has various websites. The biggest website is Walmart.com. Various sources reveal that the Website witnesses approximately 100 million unique visitors on a monthly basis. Additionally, Walmart has an app referred to as the Walmart app (Lu, 2014) . Here, it is evident that the distribution channels of Walmart are quite dynamic and efficient, thereby allowing the company to offer its customers with a convenient shopping experience.
Why the distribution strategy effective and offers competitive advantage
For Walmart’s distribution strategy is can be said to be effective while at the same time offering a competitive advantage for various reasons. The company has utilized its store mix to ensure that it meets the diverse needs of its customers effectively. These stores are designed in such a manner that they address the needs of clients from distinct classes, ranging from millennials to the middle class. Whereas the major source of competitiveness is attributed to the least pricing approach, the organization has emphasizes on broader product assortment, amazing store models, and increased convenience among customers (Pratap, 2018) . The company’s distribution strategy has allowed it to penetrate deeper markets, hence leading the brands competitive advantage to remain strong.
Alternatives to Distribution Strategy
The alternative distribution strategy that Walmart needs to adopt should revolve around the advancing technology. For instance, the floating distribution center would allow it to reach an increased customer base. This serves as a blimp-like aircraft, which is able to hover from 500 to 1,000 feet from the ground, while sending drones for delivering packages to clients. The vessel might operate autonomously or guided by a human pilot while it would have several stations of launching and send the drones to deliver products (Ryan, 2017) . This approach would save the company considerable amount of time and costs. Drones would be able to deliver products fast since they would bypass traffic while air-based center o f distribution would revolve around demand, which might vary significantly. It would also be able to serve a broad area unlike the case of a fixed distribution center, since the ship would be able to fly between towns while sending drones do deliver customer packages (Bloomberg, 2017) . This kind of a distribution strategy would play an essential role in terms of allowing Walmart to cover a broader area hence increase its market share and profitability.
References
Bhasin, H. (2018). Marketing mix of Walmart. Retrieved from https://www.marketing91.com/marketing-mix-walmart/
Bloomberg. (2017). Walmart wants to take on Amazon with flying warehouses. Retrieved from http://fortune.com/2017/08/20/walmart-amazon-flying-warehouses/
Lu, C. (2014). Walmart's successful supply chain management. Retrieved from https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmart
Pratap, A. (2018). Strategic analysis of Walmart Corporation. Retrieved from https://www.cheshnotes.com/strategic-analysis-of-walmart/
Ryan, K. J. (2017). Walmart hints that its next distribution center could be in the sky. Retrieved from https://www.inc.com/kevin-j-ryan/walmart-amazon-floating-distribution-center.html
Walmart.com. (2018). Our business. Retrieved from https://corporate.walmart.com/our-story/our-business
