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Foundation of Wal-Mart - Essay Example
Established in Arkansas in1962 by Sam Walton ,during the last four decades , Wal-Mart has grown rapidly to become the largest retailer of the world with 2003 sales of $256 billion,1.5 million employees and more than 4500 stores. In 1990, Walmart realized that its opportunities for further growth within the United States was becoming more limited…
Hence the company decided to expand globally It also wanted to get ahead of other retailers who were also heading in the same direction. In addition to greater growth, by gaining international reach, Wal-Mart has been able to demand deeper discounts from the local operations of its global suppliers thus increasing its potential to lower customer prices , gaining market share and ultimately earning greater profits.(Charles W.L.Hill,2006).
Walmart is arguably as american a company as it can get.So when the decision was made to expand globally,there was plenty of skepticism to go around.Some of the major management decisions involved questions concerning where to begin , how to go about it and how to customize their products to a foreign clientele. While its retailing practices thrived in America ,there were a multitude of challenges it would have to face in other countries where infrastructure is different, government policies vary, and customer tastes and preferences are "foreign". ...