Sam Walton once said that “our people make a difference” referring to the associates that he viewed as partners that should share in the profits of the company (Wal-Mart Stores, Inc., 2014). Walmart associates process hundreds of millions transactions every week in their retail stores. However, the retail store is only one component of Walmart’s vast supply chain and logistics network which are largely responsible for their continued success. D... ... middle of paper ... ...p://www.continuityinsights.com/articles/2006/02/walmart-beyond-business-continuity-basics Schuman, E. (2004, 10 13). At Wal-Mart, Worlds Largest Retail Data Warehouse Gets Even Larger.
Wal-Mart Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America? Wal-Mart was conceived and founded by Sam Walton in 1962, at Rogers, Arkansas. Sam Walton started with just a few small variety stores, funded with borrowed money.
The company's core customers, middle income families, were most affected by the recession. Ullman tried to cut some costs but it was not performing well as it's competitors like Macy's, Kohl's, and Dillard's (Guinto, 2011). Revenues were not as much expected and stock prices were going down so he was replaced by Ron Johnson in 2011 as 10th man to lead the company. Ron Johnson, who had lots of success with Apple and Target, was picked to transform the company. He was regarded as an innovative and highly regarded retail experience.
Retail super-giant Wal-Mart has fought its way to becoming the world's largest company. Much of their success can be attributed to providing a vast assortment of products at exceptional prices all under one roof. Wal-Mart began operations in 1964 and has since become the world leader in retail. Today, Wal-Mart is visited by 138 million customers per week at their 4,750 stores. Wal-Mart operates under four basic rules in order to satisfy such a large number of customers: Respect the individual, provide the best service to their customers, strive for excellence, and exceed customer expectations.
Target competes with Discount stores and supercenter shopping formats of Wal-Mart with Target commanding a small premium on prices as it follows fashion trend. Market segment of Target is the high-income customers leading to higher margin realization. ($ 50,000 of target vs. EDLP strategy of Wal-Mart by leveraging purchasing scale has pushed down prices compared to other retailers. Average prices in Kmart and Target is at least 10-15% higher than Wal-Mart and focuses its competition on product variety and quality. Revenue growth of Costco during 2008-2012 (22.64%) is almost doubled that of Wal-Mart (11.86%) during the same period.
The growth of this company is sky rocketing and leaving any room for competition to keep up. Based on the current sales Walmart is ranked as one of the top retail if not best retail store in the world. It roughly brings in 256,329,000 net sales a year and its net profit is around 10,803,000 a year. With the turn around rates, an accurate calculation of current employees is not attainable, however there is a documentation of 1.3 million current associates worldwide. This includes stores, clubs and 10 international countries.
Wal-Mart has become a capability competitor. It continues to improve upon its key business processes, managing them centrally and investing in them heavily for the long-term payback. Based on Wal-Mart's position in 1994, which was considered a year of expansion for the company, (Wal-Mart added 103 new discount stores, 38 "Super-centers", 163 warehouse clubs, and 94,000 new associates) interest debt increased 52.3%. Sam Walton expressed his belief that by the year 2000 Wal-Mart should be able to double the number of stores to about 3,000 and to reach sales of $125 billion annually.
Our Story. Retrieved May 28, 2014, from Wal-Mart: http://corporate.walmart.com/our-story/ Wilking, R. (2007, sep 12). Wal-Mart rolling out new company slogan. Retrieved may 28, 2014, from Reuters: http://www.reuters.com/article/2007/09/12/us-walmart-advertising-idUSWEN091820070912 Wysocki, B. (2009, April).
First, let’s take a look back at how the company got started. Sam Walton opened up the very first Walmart on July 2, 1962 in Rogers, Arkansas. By 1967 the Walton family owned 24 stores ringing up $12.7 million in sales. In 1983 the first Sam’s Club was opened in Oklahoma. If you fast-forward to 1990 then Walmart becomes the world’s number one retailer.
Sam Walton was obsessed with cost cutting and he managed to foster this culture in the business that he started (Frank, n. d). He managed to keep the overheads of the company by controlling his payroll. He did this by framing his frugal nature as a crusade for the low consumers as well as a quest for a favorable lifestyle for Americans. The practices that are found in many Walmart are attributed to Sam Walton who infused them in his employees through charisma and charm. He made his employees feel as if working at the stores was an abyss of opportunities.