Marketing Project 3
August 9, 2010
The Innovative Impact of Wal-Mart
In the past two decades, Wal-Mart has been the leading domestic retailer. Its success has come from its excellence in customer service, supply chain management, and the ability to keep prices low. The problem facing Wal-Mart, is trying to find ways to sustain its dominance in the industry. The factors affecting this problem are the U.S. retail market becoming very saturated and the company’s ability to make a profit globally.
I have organized my paper, to provide an account of, “What has made Wal-Mart successful, the company’s target market and I will discuss Wal-Mart’s pricing policies and their distribution system. I will also discuss Wal-Mart’s use of technology and Wal-Mart ads. I will end my paper discussing Wal-Mart’s long term strategies globally and domestically.
In the early 1960’s Sam Walton took what he had learned from studying merchandising around the country and began to make his mark in the retail market. He decided that small town populations would welcome, and make profitable, large discount shopping stores. Sam and his brother, J.L. (Bud) Walton, opened their first Wal-Mart store in Rogers, Arkansas in 1962. By the end of the 1960’s, the brothers had opened 18 Wal-Mart stores. The stores became very successful and soon these ventures became Wal-Mart stores, Inc.
What has made Wal-Mart so successful? Wal-Mart has used many innovative ideas that have made the company successful. The retail giant implemented a new warehouse distribution strategy, where as the company built its own warehouses, so it could buy in volume and store the merchandise. Wal-Mart then proceeded to build stores throughout the 200 – square mile area around the distribution points. Wal-Mart’s merchandise could now be restocked as quickly as it is sold. As Wal-Mart became successful, The Company started... [continues]
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