Diversification

Walmart invest in business units that are related to their core business and provide value to the company. Using a related constrained diversification strategy, Walmart divided the company into 3 main divisions Walmart US, Wal-Mart International, and Sam's club . The 2009 Annual Report shows that Walmart US consist of about 63 % of the total revenue for the company. Walmart US is composed of discount stores neighbor markets, and Supercenters. Wal-Mart International is the second largest division with about 25% of the revenue. Currently, Walmart operates in fifteen different markets, which have a global focus of providing low cost products to customers. With 26.9 Billion in sales,Sam's Club, a deep discount wholesale provider, only makes up 12% of the company's total revenue.

I was surprised to find out that Walmart had their own realty company. Walmart Realty was designed to find businesses to move into their old Walmart stores or sell property near their current store locations. In 2002, they opened Walmart transportation to handle the flow of goods. Since Walmart uses a cost leadership strategy, the ability to manage the incoming and outgoing logistics is a great factor in their success