Even while still operating the Ben Franklin’s store, he would purchase products from wholesalers and minimally markup the price. Where most retailers would rely on markup prices to gain profit, Walton would rely on pure volume in order to make up for the low prices (Frank, 2006). This was a smart decision on his part because it makes sense that if a consumer can get the same product for a lower price then they will purchase the cheaper product. It was not until 1962 that Sam Walton opened the first Wal-Mart store, also in Arkan... ... middle of paper ... ...Mart attempts 'made in America' push.
Student’s Name: Professor’s Name: Course Code: Date: SCM 4385: Optimization Tools Wal-Mart’s Background The retail industry is one of the most promising industries, as more retailers continue venturing into the global market. According to Blanchard, Comm, and Mathaisel, Wal-Mart is the largest retailer in the world as a result of its efficient supply chain (166). Wal-Mart deals with groceries, apparel, and music among other retailer goods. Since Wal-Mart is a giant retailer, it deals with products manufactured or processed by other business. On the same note, the e-commerce is becoming an attractive avenue for retailers as they continue expanding their operations.
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.
1. Nature of the Business Environment Wal-Mart delivers a wide variety of goods at competitive prices to add value and low cost its costs, making it the strongest company in the retail sector. Over the years, Wal-Mart has attracted the attention of many analysts because of its huge international success and its ability to target a wide demographic of shoppers. Wal-Mart is a discount retailor founded by Sam Walton in 1962. This Company has grown to be a retail giant with over 11,000 stores worldwide from Canada, Brazil, Argentina, UK, and China.
This happens through a creative vision, with many partnerships that combined to form an enormous conglomerate. Business Model Wal-Mart business model hinges on a simply notion, to provide product and service to customers when and where they want them. This way of thinking defines the company as an innovator, searching for ways that will not only perpetuate their firm grasp on the retail industry, but also provide their consumers with low-cost options for products and supplies. The Wal-Marts supply chain is a global dynasty, it is known for being effective and efficient, technologically advanced, and logistically sound. These principles are some of the reasons Wal-mart is regarded as the top supply chain in the retail industry.
It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. Wal-Mart’s new slogan is “save money, live better” (Wal-Mart Stores, n.d., p. 1). According to the company’s website, “saving money is a means of helping our customers live better. By offering the best possible prices on the products our customers need, we can help them afford a little something extra” (Wal-Mart Stores, n.d., p. 1). For each strategy that Wal-Mart promotes in flyer ads or television commercials, they measure the return on investment from these promotional strategies.
Wal-Mart provides one-stop shopping where customers could buy a wide variety of quality merchandise at discount prices. Their mission correlates with their growth and stability because Wal-Mart generally operates in smaller communities, offering name-brand merchandise at low prices and friendly service. Corporate-Level Strategies In recent years, Wal-Mart has implemented specific strategies to facilitate growth and stability. In accordance with their mission statement, “We save people money so they can live better”, Wal-Mart has aggressively included new plans to open new stores, open ... ... middle of paper ... ...ble events. Lastly, Wal-Mart has an anti-unionization policy and allow its employee to decide if they would like form a union.
Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one.
1. Wal-mart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution and logistics system adopted by Wal-Mart. Wal-Mart is known to beone of the best supply chain companies in the world. Throughout the years Wal-Mart has adapted strategies that keep up to their name.