World Business Giants Wal-Mart's Success

Topics: Retailing, Discount store, Department store Pages: 8 (2154 words) Published: October 25, 2011
World business giants Wal-Mart's success
Mention "Wal-Mart," the name is no stranger to Chinese consumers, it is well-known U.S. retailers. Its founder, Sam. Wal-Mart in the town of Dayton in 1945 and started operation in Bentonville, retail trade, after decades of persistent struggle, and finally establish the Kingdom of the world's largest retail trade. Sam. Walton had been "Forbes" magazine as the nation's first billionaires, but also because of its outstanding entrepreneurial spirit of President George W. Bush in 1991 was awarded the "Presidential Medal of Freedom," which was an American citizen's highest honor.

     Wal-Mart is the nation's highest rate of return on investment companies. Its investment rate of return of 46%, even in times of recession in 1991, up 32%.

     His history is far from the U.S. retail industry a century-old store "Sears" So long. However, in a short period of 30 years time, it will grow to become the nation and the world's largest retailer.

     At present, Wal-Mart's business philosophy, management skills, has become a hot topic in American management circles.

     Competitive strategy of encircling the cities from rural areas

     Wal-Mart's early days, faced with a powerful Sith, Kmart and other retail giants. At that time, these large retail enterprise business is largely concentrated in large and medium cities, but for small towns are ignored. Because they believe that small towns do not offer retail business conditions, more than 25,000 in population only to set up shop in the area, but Sam. Walton, however, seize this aircraft, developed and adopted a "encircling the cities" strategy, the selected small towns serve market segments. Their specific implementation strategy is based on the state as a unit, a county a county filled, until the entire state of market saturation, and then back to another state expansion. By a county to a state, a state to a region, then a regional expansion throughout the country. Sam. Wal-Mart's principle is that as long as the population in the construction of shops between 5000-10000. Wal-Mart's successful use of a small town retailers, this has been forgotten by other segments of the market, rapid development, while avoiding competition from other retailers. And other retailers, aware that time, Wal-Mart's business has become Liaoyuanzhishi, unstoppable, in the National Retail gaining a solid footing.

     In order to ensure their rapid development, not just Wal-Mart to open stores, but also established a Sam's Club: as little as 25 U.S. dollars for each customer you can get a membership in order to obtain a large number of wholesale merchandise. At the same time, Walsh Matthew also used mergers and means, has 112 stores strategic measures to ensure the rapid development of the Wal-Mart.

Wal-Mart's business expansion plans






1.4 million U.S. dollars

36 million U.S. dollars

1.2 billion U.S. dollars

26 billion U.S. dollars


112 thousand U.S. dollars

120 U.S. dollars

41 million U.S. dollars

1 billion U.S. dollars

Number of commercial rub




   Discount sales business strategy

     Wal-Mart is able to quickly develop, in addition to the right strategic positioning, would also benefit from its first "discount marketing" strategy. Wal-Mart stores every quote there is "every day low-cost" big banners. The same kind of goods in Wal-Mart cheaper than other stores. Wal-Mart promoted low-cost, low-cost structure, low-cost business ideas, advocated greater yield benefits to consumers, "for customers to save every dollar," is their goal. Wal-Mart's profits are usually about 30%, while other retailers such as Kmart's margins are about 45%. Manager of the company held on every Saturday morning staff meetings, if there are branches that certain goods in other stores than Wal-Mart's low, immediately decided to drop. Low price, reliable quality is a major...
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