Case analysis: Walmart’s Sustainability Strategy
Why Walmart announces sustainability strategy?
There is no need to introduce its background anymore; I think everyone knows the super supermarket leader’s name which is called Walmart. Here is the point that in this case why the CEO of Walmart Scott announced to do the business sustainability strategy in 2005. The sustainability will be the most focused in the 21century when the environment get worse every day. This strategy seems that Walmart will increase its cost and make a great contribution to the world. There is no doubt that the sustainability is quite good for the world environment we live. On the other side, as the Scott said “being a good steward of the environment and being profitable are not mutually exclusive. They are one and the same.” In a word, Walmart will make more money due to this sustainability strategy. Maybe the time is not the right now because they have invested lots of money at the beginning but it must be profitable in the long run.
NEXT: How to make money from the sustainability?
1. Building its good reputation in the costumer
There is no doubt that costumer is one of the key factor to Walmart. It is easy to find out its importance when they are asking the feedback of costumer very frequently and carefully. (e.g. exhibit 7) On the other side the huge company Walmart has a long and mature supply chain which also makes a huge environmental impact. In the study of the case shows that Walmart was the biggest private user of electricity in the U.S.A and emitted more than 19.1 million metric tons of carbon dioxide annually an amount equal to the pollution created by roughly 2.8 million households. (P3) It is just a part of the Walmart’s environmental impact but it is easy to think how serious it is. So Walmart’s reputation deteriorates in the costumers. That means their market share is reducing which can make a serious damage to their mature supply chain. It will cause more...
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