WalMart

1
Topic 5

• Wal-Mart
• The Worlds Largest Retailer

2
History and background

• 1962,Sam Walton and his brother opened the first
  Wal-Mart discount store in small-town Rogers,
  Arkansas.
• It was a big, flat warehouse-like store that sold
  everything from apparel to automotive suppliers
  to small appliances at very low prices.
• http//www.walmart.com/

3
Strategy

• Experts gave the retailer little chance
• ---conventional (usual) wisdom suggested that
  discount stores could succeed only in large
  cities.
• The company has taken its winning formula (rule)
  into new growth areas.
• For example, the company is now well established
  in larger cities and is expanding rapidly into
  international markets.

4
Global market

• Within only a few years of entering the grocery
  business with its super-centers---and more
  recently with its small Neighborhood Market
  stores---Wal-Mart will soon become the nations
  largest grocery retailer.
• ?Wal-Mart will be number one land and online.?

5
Key point

• What are the secrets behind this success ?
• Wal-Mart listens to and takes care of its
  customers, treats employees as partners, and
  keeps a tight rein (control) on costs.

6
Listening to and Taking Care of Customers

• Wal-Mart positioned itself strongly in a
  well-chosen target market.
• The chain built a strong everyday low-price
  position long before it became fashionable in
  retailing.
• It grew rapidly by bringing the lowest possible
  prices to towns ignored by national discounts.

7
Listening to and Taking Care of Customers

• Wal-Mart knows its customers and takes good care
  of them.
• As one analyst puts it, ?The company gospel
  truth)is relatively simple Be an agent for
  customers, find out what they want, and sell it
  to them for the lowest possible prices. ?Thus,
  the company listens carefully.

8
Listening to and Taking Care of Customers

• For example, each topic Wal-Mart executive spends
  at least two days a week visiting stores, talking
  directly with customers and getting a firsthand
  look at operations.
• Then, Wal-Mart delivers what customers want a
  broad selection of carefully selected goods at
  unbeatable prices.
• Concludes Wal-Marts current president and chief
  executive, ?Were obsessed with delivering value
  to customers. ?