Wal-Mart The Big Box
Building business to be known worldwide is multi-tasking and requires special skills and strategies. Most world re-known business brands in retail chain stores, motor industry and commercial products rise from sole proprietors who expand to the extend of global recognition and brands. Wal-mart has been on such business success that was build by Mr. Sam Walton in 1960s. This research will focus on the analysis of success and challenges wal-mart is encountering by examining historical background of wal-mart, looking at key competitors, product mix, strategies for promoting wal-mart and finally look at its the financial position.
This will serve as a case study for Industry Analysis against current changing trends in managing chain stores business. Introduction This paper provides an analysis of the company Wal-Mart in terms of all the major aspects of the company. The paper begins with an analysis of the industry besides presenting a history of the company. The paper then looks at the competitors of the organization, its financial strength as well as how the company is currently operating in the industry.
The paper equally looks into the promotional strategies of the company, as well as the product mix the company can use. The paper then gives a final summary on the possible way forwards with regards to the future of the company. Industry analysis: The Big Box Wal-mart is a household name in most cities across the globe. It is ranked as the most successful retail stores operator. Current retail in form of discount stores, markets and supercentres number over 6,000, with US alone has 4,000 while the rest are distributed in 13 cities across the continent (Research and Markets).
There is rich and diverse history behind wal-mart stores. The business operations scopes of wal-mart are in three segments as follows, Sam club, stores and international segment. In addition, it has registered brand names like Great value, Equate, Athletic works, HomeTrends, Sams Choice and others licensed in operations of various sectors including McDonalds, General Electric, Mary-Kate and Kate, Disney and Starter. Industry analysis figures indicate that by January of 2007, wal-mart was running 4,022 businesses in US alone (Research and Markets).
Wal-Mart History Sam Walton started wal-mart in 1962 based on a unique business strategy. Walton was a retailer who bought goods at bargained price from wholesalers but did not adjust prices instead he preferred to earn profits from business volume unlike most retailers would have done. Walton established the Wal-mart culture of being cheap by employing cost-cuts, for example, sharing hotel rooms and flying in the same coach all executives and boss during business trips.
One cannot belief the cost-cut extensions even to the office coffee where 10-cent has to have been contributed on the tin (Frank, Washington monthly). Walton legacy is to factor on the cheapness, which is passed to the lowest consumer in order to improve livelihood of all Americans. Mr Walton dreaded workers unions since his cost cuts affected his employee’s salaries; however, most of his employees appreciated his policies.
He was termed lowly employees his associates and even when the wal-mart widened business scope he would always find time to interact with them. Waltons’ campaign in 1985 for branding made in America goods was genuine to keep his employees happy. Trade deficits had threatened the Americas Manufacturing sector due to competition from foreign products at that time and possibility of job losses was looming(Frank, Washington monthly).
Mr Walton had unique business strategy to retain employees; one truck driver was quoted commending on how Walton encouraged his workers to buy wal-mart subsidized stock. One such example was “If an employee would stay for a period of 20 years it is possible for the employee to have a share of wal-mart profits close to $ 100,000”. Walton past away in 1992, and the post-Sam regime has proven challenging to the present executives whether to maintain set habits and principles against shifting fate on company perception (Frank, Washington monthly). Key Competitors