Wal-Mart Business Model

Case Study
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A business model concretizes the nature and ideas of a business and defines its goals. It identifies the products and services that the business will provide as well as those that it needs to operate. It firms up the plan on what the business will do and how it will work.


It set-up giant all-in-one stores in small towns which quickly gained patronage because of the service that Wal-Mart associates provide and customers are able to buy the products they need in one convenient place. Today, Wal-Mart is the world's largest retailer with $345 billion in sales, with more than 176 million customers per week visiting its more than 6,500 stores worldwide, 61,000 suppliers and providing more than 3 million American jobs. (walmartstores.com 2008)
Wal-Mart's continuing success may be attributed to Sam Walton's foresight in including information technology in its business model to facilitate organizational innovation. As early as 1966, Walton was recruiting IT professionals from IBM to help him wire his company. This led to innovations in just-in-time inventory, choreographed logistics and warehousing. (Beckham 2002)
Wal-Mart's business model mandates that it provides the products and services that customers would want to buy. With the company's enormous data warehouse which includes customers' purchases, Wal-Mart knows what its customer wants and "it provides merchandise and designs its stores according to customer preferences." (Felgner 2006) In support of its objective of customer satisfaction, through technology, Wal-Mart is able to process more than 20 million customers per day, with credit card approvals done in less than a second. ...
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