Walmart as we know, is a large international discount retail chain. It all started in the 1940’s when Sam Walton had a momentous idea. Unlike most retailers who get bargains from employers and pocket the change, Walton decided that he would pass along the savings to his customers and earn greater profits through volume. After franchising a Ben Franklin’s variety store for several years, Walton invested 95% of his capital to open the first ever Walmart store in 1962. Walmart started off selling a variety of mostly non-grocery items, but with time has decided to incorporate more grocery items.
Something that I found extremely interesting when doing research was the fact that Walton was freakishly cheap. He was considered the richest man in America by the 1980’s. That didn’t stop him from getting his $5 hair cut (which he never supplemented with a tip), having everyone in the company flying coach (even the boss), having them share hotel rooms, driving an old truck, and even charging 10 cents for a cup of coffee at the office.
Walmart is the third largest public corporation according to Fortune Global 500’s list of 2012. Walmart has 8,000 stores in 15 countries under 55 different names. Walmart is operting in Mexico as Walmex, the UK as Asda, Japan as Seiyu, and India as Best Price. Walmart is also currently operating in Argentina, China Brazil, and Canada. The only countries in which Walmart remained unsuccessful were Germany and South Korea.
When it comes to the “3 Generic Strategies”, Walmart takes on a “cost leadership” approach. When you walk into Walmart, the first thing people notice is the low prices. This family business strives to compete successfully on low costs. Walmart is known for its amazing prices and best value. As our book states, a corporation such as Walmart has the power to minimize the threats of…