Walmart’s Sustainability Strategy

“WALMART’S SUSTAINABILITY STRATEGY”

Wal-Mart developed a new sustainability strategy to deal with the environmental issues the company caused. The strategy based on the efforts to develop and implement goals of zero waste, selling sustainable products and using 100 percent renewable energy. With this strategy the company not only aimed to resolve the problem of paying fines to state and federal regulators for its environmental damage but also change its bad reputation among customers. The company also realized its sustainability strategy creates cost advantages and this should turn out an opportunity to maintain its lower price strategy. Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track.

Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain, coordinate manufacturers and compete with the rivals. Company should find new ways to get greener supply chain with less capital, lower the operating costs and catch more competitive advantages in the market. Even though they identified some primary areas such as energy, waste and products, and decided to set environmental goals for reducing Walmart’s impact on the environment, they still need strong ideas more to reach those goals. They have to develop the green product lines, distribution channels; educate customers about importance of using these products; and create public awareness and reliability about Walmart’s sustainability strategy with having local, national and global level partnerships.

Walmart takes advantage of its efficient supply chain and keeps the products prices low. (cite!pg2-3) The company should find solutions to maintain this efficiency while applying its green mission to supply chain management in the future. Having energy efficient and environmentally friendly truck fleet can help to achieve this goal. Also, the company could establish partnerships with the manufacturers and retailers which aim the same efficient and environmentally friendly supply chain targets. For example, shared transportation, warehouses and infrastructure idea can open to discussion. This might provide to lower the costs including supply chain costs and serve the purpose of company’s sustainability