Analysis

There are two issues that are currently plaguing Walmart: Amazon’s rise as an ecommerce giant, and their inventory management system. As stated earlier in the report, Walmart has been an ideal place to shop due to the low prices of its products, and their many locations which makes them easily accessible to most, if not all Americans. Once Amazon really gained its footing in ecommerce Walmart began to suffer. Like Walmart, Amazon offers many products at low prices, but its advantage over Walmart is that it is an online store.

An improvement Walmart can make is creating a proper inventory management system. To achieve this system, Walmart’s corporate office should look and see how other large retail corporations handle their inventory and model their system in a similar way. After creating their system, Walmart should break the system down to their regional managers and make sure they have a thorough understanding of the new system. Once regional managers have been trained, they should be paired with a corporate employee who helped design the system. The regional manager and corporate employee should then go to each store within their region and train the management staff on inventory management. Once store management has a firm grasp, they should train employees in medium or large sized groups depending on the store. After having trained all staff trained in the new system, Walmart’s corporate office should allow for a two month learning curve, then they should allow for a three month  margin of error when it comes to the inventory system being graded on its efficiency.