Walmart – a Brief History

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Walmart – A Brief History

•In 1962 Sam Walton open his first Wal-Mart in Rogers, Arkansas. His low price approach to retail soon became a model that all Wal-Mart stores would follow. "Sell brand merchandise at low prices."

•By the 1980's Wal-Mart had over 300 stores and had accumulated over 1 billion dollars in sales.

USP OF WalMart Stores

•Wide variety, Low prices
Other features
•Efficient supply chain network
–Central buying & Promotion
–Distribution Warehouse
•Cooperative employees

Winning Formula

"BUY IT LOW, STACK IT HIGH, SELL IT CHEAP"

Strategic Intent

•To operate and expand in the international market-acquired ASDA in the UK.

Tactics

•Customer delight
•Leveraging technology
•Respect for individual employees
•Better services

Sam Walton preached that "extraordinary results can come from empowering ordinary people" and hence displayed a Participative leadership style as per the case. Walton spent much time in stores with his associates freely exchanging ideas.

ENVIRONMENTAL ANALYSIS-WALMART.

•Potential competitors:
Sears, Roebuck & Co., Kmart. E.J.Korvette, W.T.Grant, Atlantic Mills, Arlans, Federals, Zayre, Heck's, Ames, Home Depot, Local Merchants, Regional Discount Stores.

•Rivalry:
Several formerly successful firms like, E.J.Korvette, W.T.Grant, Atlantic Mills, Arlans, Federals, Zayre, Heck's and Ames, reorganized.
Superstores of drug and foodchains rapidly discounted.
Several new retail formats had emerged in the marketplace to challenge the discount department store format. Outlets known as "Malls without walls" opened up.

•Suppliers:
Grocery & General Merchandise- Pepsico, Kimberly Clark, Rickett Benkiser, Kraft, Danone, Mattel etc.

MACRO-ENVIRONMENTAL FACTORS

•Economic Environment:

1980s & early 1990s- eras of economic uncertainty for retailers, many retailers negatively affected. Increased competitive pressures, sluggish consumer spending,...
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