Wal-Mart’s Winning Strategy Sam Walton’s philosophy was to make sure he always had a wide variety of goods available to the customer at low prices. When he started his first retail business, he would visit other stores to compare prices and see how they displayed their products…
This was another great idea because store managers were more motivated to succeed and improve their individual stores. Another philosophy Walton had was locating his stores in small towns as opposed to large cities. This allowed him to avoid competition from larger retailers. He also created clusters of stores within a specific region and had giant warehouses built in the middle of these clusters in order to supply the stores in that region (“Wal-Mart,” 2009). These various strategies and management philosophies that Walton employed made Wal-Mart a tremendous success. Wal-Mart continued to expand in the 80s. Walton introduced “Sam’s Club” stores in 1983, which allowed customers to buy consumer goods at bulk-quantity prices. In 1987, Wal-Mart purchased a state of the art networking system that instantly communicated inventory and sales information across their network of stores. This greatly increased efficiency and gave Wal-Mart another edge over its competitors. A year later, Wal-Mart introduced their first “Supercenter” which combined their retail store with a supermarket. They continued to grow in the 90s as they went international in 1995 and introduced the first “Neighborhood Market” stores, which specialize in groceries, in 1998 (“Wal-Mart,” 2009). ...
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This study aims at analyzing the business model of a multinational company which is also in the second position in Fortune 500 list. The company chosen for the study is Wal-Mart, which is regarded as the last retailer or supermarket chain globally. The study would be including an overview of Wal-Mart, further leading to an evaluation of its business model (CNN Money, 2012).
Governmental institutions are limiting the permits Wal-Mart gets to open stores in certain regions. A way for Wal-Mart to eliminate this barrier of entry is by utilizing e-commerce. Wal-Mart utilizes e-commerce to attract customers worldwide. The firm has a very attractive websites that has a vast variety of items available for sale at reasonable prices.
Evaluation Essay on Wal-Mart Introduction: The Wal-Mart has shown the art of retailing. The global retail giant came up with the concept of selling mass products in a discounted rate to the customers. The main concept was to sell in high volume with low price so the volume of the profit goes high.
Furthermore, the organization launched the first super center in the year 1988 whilst initiating the first global unit in Mexico in the year 1991 (Lichtenstein, 2006). By the closure of the 20th century, the company had realized prominent international recognition and won numerous business awards.
Wal-Mart has been growing rapidly in the Canadian market. It faces direct collision with the Target. The two companies have been fierce rivals and have recently celebrated their 50th anniversaries. The two have similarities in the range of merchandize and store sizes.
Dominating global retailing is the US firm Wal-Mart - it dominates North American industry directly and the global industry by example. Wal-Mart having 1.2 million of employees is considered as the world's largest retail stores chain. Every week, 138 million shoppers visit one of Wal-Mart's 4750 US Stores to benefit from their everyday low prices.
3-4, 11). Wal-Mart is ranked as the largest retail company on the Fortune 500 list (Ball et al, 2005, p. 407), with more than 2,700 stores, and 18% annual growth (Wal-Mart Stores, 2006).
Today, Wal-Mart's strong international position in the retail industry is based on effective organizational processes to perform critical activities that have remained unmatched by competition.
These retail stores sells myriad products which includes, among others, apparel, stationery, sporting goods, toys, hard goods, soft goods, electronics and jewelry.
As per its 2006 Annual Report, the firm has recently purchased retail operations of Sonae in Brazil and Seiyu of Japan.
Besides, uncovering the reasons behind the popularity and prominence of Wal-Mart as a customer-oriented super-shop has also taken a significant place in the present study. The study also attempts to erect an entire organogram of Wal-Mart concerning its transaction process dealt between the Stakeholders in the Wal-Mart business Shareholders, Suppliers, Distributors, Dealers, transportation, Bankers, Advertising/Marketing/Market research agencies and impact upon them arising out of its business.
The fact that Wal-Mart today is the biggest retailer speaks of the success of its pricing strategy. “Wal-Mart is not just the worlds largest retailer. Its the worlds largest company--bigger than ExxonMobil, General Motors, and General Electric” (Fishman, 2003). Wal-Mart
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