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Walmart Case Study

Essay by   •  August 15, 2011  •  Thesis  •  763 Words (4 Pages)  •  1,895 Views

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Wal-Mart is a very successful business being that it is one of the largest retailers

in the world and also leads in sales year after year. Wal-Mart employs over 2

million employees and serves over 176 million customers in a year. I honestly

believe every smart entrepreneur should take notes from this organization. The

company was started by one man with a dream and has overcome the changes in

trends and times and the challenging economic conditions.


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 gage 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 this 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 associate at each entrance of

his stores to greet the customers. By doing this, it made the customers feel

welcome 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 costs because goods are continuously

delivered to stores within 48 hours and they don't have to inventory them. This

allows Wal-Mart to replenish the shelves up to four times faster than the

competition. Wal-Mart buys goods directly and distributes them which save time

and money. Once again, this practice passes the



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