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Walmart’s Everyday Low Price Strategy

Digital Era EDLP

In the 21st century, EDLP represents a strategy that can help organizations maximize gains through the interface of a balance between market share and brand strength. This strategy became so popular that many brands were forced to ditch discount behaviors in favor of EDLP. Walmart is one of the best examples of successful EDLP strategies. Its stores are known for their massive size and vast selection, but low prices are what really define Walmart. The firm has followed this price plan from its inception and has never veered from it.

A Strategy to Remain Competitive While Gaining Profits

The cornerstone of the company’s founder, Sam Walton’s strategy was to reduce operational expenses to a minimum. Walmart maintains prices by employing a sophisticated and mostly automated supply chain management system, maintaining the store’s basic design, and pushing budget transportation chains. Expanding in adjacent fields can remain Walmart stay competitive in the near future. Walmart is forming a fintech company in collaboration with Ribbit Capital, a venture capital firm. This new company will provide Walmart shoppers with low-cost financial solutions and banking activities such as saving, borrowing, and investing without the requirement for a traditional bank relationship, either online or over the phone.

Walmart’s Strengths

The core strength possessed by Walmart is the actual size of the company, which brings incredible revenues. According to Jindal et al. (2021), the corporate magnitude of Walmart is the exclusive variable that keeps up the company’s competitive spirit. The second crucial strength exercised by Walmart is the development and deployment of supply chain operations that are much more efficient and instant than those of their rival companies (Xie & Cooke, 2019). When it comes to negotiating with its suppliers, Walmart almost never uses brokers. He works directly with the makers of the products he sells.

Walmart’s Opportunities

The first opportunity to be exploited by Walmart is a rational transformation of hiring and firing practices. Consistent with Xie and Cooke (2019), the company could significantly revise its human resource management. Until recently, Walmart was one of the worst companies in terms of wages and working conditions. Walmart has also launched Walmart Plus, a membership delivery service. With no minimum order, Walmart Plus members enjoy unlimited free next-day and two-day shipping. Subscribers also get special discounts and may use several benefits in the stores. In the age of subscriptions, this can be beneficial in the future and increase Walmart’s sales and margins if constantly developed.

Leadership Priorities

There are four essential priorities that I would have to cover in order to lead the team to maintain a strong vision in terms of price and execution:

  • Set clear expectations – this will help in terms of planning and defining the qualities of good execution;
  • Assessments – in line with Jabbar and Hussein (2017), the habit of conducting weekly and monthly assessments of the work done would make it easier to avoid failures;
  • The rise of online marketplaces and general digitalization paved the way for companies such as Amazon to prosper. While Walmart is only adapting its marketplace and Walmart+ initiative, the constant monitoring of rivals’ practices is essential to build development strategies.

During my first six months on the job, the priority should be to assess the databases regarding marketing and market situation while at the same time gathering a strong team whose task would be to increase the company’s competitiveness.


Jabbar, A. A., & Hussein, A. M. (2017). The role of leadership in strategic management. International Journal of Research-Granthaalayah, 5(5), 99-106.

Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy? Journal of Business Research, 122, 270-280.

Xie, Y., & Cooke, F. L. (2019). Quality and cost? The evolution of Walmart’s business strategy and human resource policies and practices in China and their impact (1996–2017). Human Resource Management, 58(5), 521-541.

Zwanka, R. J. (2018). Everyday low pricing: A private brand growth strategy in traditional food retailers. Journal of Food Products Marketing, 24(4), 373-391.

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ApeGrade. 2023. "Walmart’s Everyday Low Price Strategy." March 3, 2023. https://apegrade.com/walmarts-everyday-low-price-strategy/.


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