Walmart is one of the largest retailers in the world in terms of revenues and number of employees. With millions of employees worldwide, the company is an example of effective human resource management. From its beginnings in Arkansas in 1962, the company developed its retail business with sound financial strategies to achieve its current global position in the industry. The slogan of Walmart – “Save Money. Live Better.” is absolutely accurate. Walmart has also taken up projects to reduce the healthcare cost of the people. “Walmart Health is proof that the private sector can deliver high-quality, transparently priced health care services without government intervention,” says Elise Amez-Droz, a health care policy associate at the Mercatus Center. “The best way to cater to our varying needs is to let patients have the final say in their health care decisions, shopping for better value and reaping the benefits in the form of better care and savings.”
ABOUT HEALTHCARE IN UNITED STATES
The US healthcare system is complicated and regulated by a web of state and federal laws. It is extremely overpriced and the results are worse than most developed countries. The United States pays two and a half times the OECD average costs of healthcare. Australia spends about half as much for what is universally considered to be a better healthcare system than the U.S. The Republican idea to fix this is simple: let the free market handle the healthcare economy. “What’s wrong with the U.S. system is that people are tied to providers and/or insurers,” they argue. “What we really need is a completely open market, with more choice — this system would drive healthcare costs down!” Thus, Walmart wants to enter Healthcare.
WHY PEOPLE CHOOSE WALMART?
Walmart has worked to reduce health-care costs — for its customers in addition to its employees — as the nation’s largest employer and retailer making it a top priority. Walmart has made health-care more affordable, accessible, personalized and transparent. Walmart’s decision in 2006 to slash the price of some generic drugs to $4 was indeed great. This helped people without insurance afford prescription medications. Thus, Walmart wants to enter Healthcare
Rising health costs are also cutting into its potential sales because customers have to spend more of their income on medicine and doctor’s visits than on backpacks and home goods. When consumers spend more of their paychecks on health care, they have less money to spend at Walmart. And when people use Walmart with pharmacy or healthcare services, she said, they tend to shop for other items in stores, too.
GROWTH OF WALMART
The world’s largest brick-and-mortar retailer, Walmart, is also one of the fastest-growing and most dynamic e-commerce organizations. Led by Marc Lore, founder and former chief executive officer of Jet.com, they have created an experience that let customers shop anytime, anywhere — delivering exactly what they want, when they want it. Being the largest website, Walmart.com, sees up to 100 million unique visitors a month, according to ComScore, and is growing every year. With innovations like Online Grocery Pickup, NextDay shipping and a whole host of apps, we’re providing customers with more ways to save time and money while reimagining how digital and physical shopping work together. Thus, Walmart wants to enter Healthcare.
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Retailers are searching for ways to differentiate their stores as consumers increasingly shop online. Some of them are teaming up with pharmacy companies, adding health clinics and expanding drug aisles to draw more customers into the stores. Thus, Walmart wants to enter Healthcare.
At present, Walmart operates approximately 11,500 stores under 56 banners in 27 countries and E-Commerce websites in 10 countries. With the fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide — 1.5 million in the U.S. alone. Tapping into the Healthcare industry, therefore, will not be that much of an issue for Walmart.
COMPETITORS OF WALMART IN HEALTHCARE
Although being the greatest store, Walmart faces numerous competitions. Healthcare will be no less for Walmart when it comes to competition. Amazon is seen as one of Walmart’s top competitors. Like Walmart, Amazon also works within the Retail Distributors industry. Moreover, Amazon generates 53% of Walmart’s revenue. The second great rival is Costco. Costco also works within the Retail Distributors field and has 2,051,000 fewer employees than Walmart. Kroger is Walmart’s third rival. Kroger is a Public that competes in the Food Processing industry. Compared to Walmart, Kroger has 1,747,000 fewer employees.
Further Apart from these top three competitors, there are other competitors too which includes The Walgreens, The Home Depot, Tesco, Carrefour, Target, CVS Health Corp, and so on.
EXPANSION OPPORTUNITY OF WALMART INTO HEALTHCARE
Above all, Walmart has reportedly been mulling some sort of expanded play for a while. In 2018, the company was said to be considering two major acquisitions in the space — of online pharmacy site PillPack and health insurance giant Humana, though neither transpired. Therefore, Walmart wants to enter Healthcare
Also, Amazon ultimately grabbed PillPack. But Senior Vice President of Health and Wellness Sean Slovenski did join Walmart from Humana last summer and is leading the current changes, according to CNBC’s report. With the mixed record of the eight-year-old Affordable Care Act and recent efforts to dismantle even that attempt at health care reform, American consumers are increasingly faced with insurance and care options that are ever more expensive and difficult. The entry of Walmart into healthcare is game-changing.
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Further, That kind of market is also poised for disruption, and disruption means opportunity. “The U.S. healthcare industry, including insurers, has never been particularly customer-centric,” notes GlobalData Retail Managing Director Neil Saunders for walmart. “The tendency to overcomplicate options and plans has led to confusion, low satisfaction, and a lack of trust. On top of this poor experience, the industry is riddled with inefficiencies. These things are an anathema to most retailers, particularly so to Walmart.”