Wal-Mart Business Concept
In 1962, Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. He understood what it was to be a businessman. Before opening his first Wal-Mart store, Sam traveled the country studying everything he could about discount retailing. This was a smart business practice to measure the competition and understand what people wanted. He believed in three guiding principles: Customer value and service, partnership with associates, and community involvement. He knew he could save money like other retailers by making deals with suppliers. He understood that buying in bulk and then selling items. By doing this, he could have the customer experience the savings directly allowing customers to get more for their dollar and it would increase the sales volume and he would still make a profit. Wal-Mart is conveniently open seven days a week, 364 days a year which is appealing in any retail market. The stores are big enough that many could spend a day just wandering around the store. Sam Walton had a reputation for caring about his customers, his employees, and the community. He ensured that there was an employee associate at each entrance of his stores to greet the customers. By doing this, it made the customers feel welcomed but it also served as a deterrent for shoplifters. The attention to detail is what makes this company so successful.
Wal-Mart invests in technology which helps with the profit margin. For instance, they have a unique cross-docking inventory system which reduces the