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Walmart Stock Market Paper

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Walmart Stock Market Paper

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  • December 2012
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Walmart: Every Day Low Prices
In 1962 the company’s founder, Sam Walton, opened the first Walmart department store. Since then Walmart has grown exponentially and has established itself not only as one of America’s largest corporation, but also as one of the largest public corporations in the world. Walmart’s business model and cookie-cutter store model has allowed the company to gain a tight grip around the average American consumer. Walmart has grown successful in many other countries around the world, having built stores in over 26 countries. Recently Walmart has faced bribery charges, which resulted in huge losses in the value of its shares. However despite the recent allegations, Walmart will always be a successful business and a sound investment because of it’s consistent sales in the US and it’s potential to dominate foreign countries in the years to come.

Within five years of founding the first Walmart, the chain had already grown to 24 stores across Arkansas. Sam Walton had found great success by marking up all of his products slightly less than his competitors. Walmart’s unbeatable prices accelerated its growth immensely. By 1987, after only 25 years, there were 1,198 stores and $15.9 billion dollars in sales. This year also marked the completion of their revolutionary satellite network, which was the largest private network of its time. This network linked every operation of the country and promoted more rapid growth. Now only small pockets of the country are more than 60 miles away from a Walmart. In the 2011 fiscal year, Walmart generated $422 billion dollars in revenue with more than 60% coming from the US alone. Walmart has firmly established itself in America as one of the largest corporations in the country.

Walmart’s current CEO is Michael T. Duke, who came to Walmart in 1995. Michael Duke currently serves on the advisory boards of University of Arkansas and Tsinghua University School of Economics and Management in Beijing, China. Since...