...Sam’s Club Analysis Zhiyue Huang MKTG 437 Final Paper zhiyue huang Sam’s Club Analysis Zhiyue Huang MKTG 437 Final Paper zhiyue huang Executive Summary Sam’s Club warehouse wholesaler has been selling low priced, bulk items, under their parent corporation of Walmart, since 1983. Sam Walton had the vision of a place where small business owners could go shopping for the items that they need in order to run their company with a low price mark-up and dependable membership service quality. This analysis will separate with seven parts to show the result of the Sam’s club: Executive Summary, Brand/Store background, SWOT Analysis, Company position, Target Market, five mix retail consideration and conclusion. I will combine the customer experience and review with in the internet and people around me to deep find the strategies of the Sam’s club Currently, “nearly 600 locations are not only terrific places to save money, but also destinations for solutions that can help ease a busy schedule. Whether stocking a pantry or a business, selecting new electronics or getting ready for a party, our Members count on Sam’s Club as their source for the products and services they need to keep things running smoothly” (Sam’s Club Inc., 2010). Brand/Store Background Sam’s club is a subsidiary of Wal-Mart that is the largest retail stores chain around the globe. The Sam’s club is member specific and its existence dates back to 1983. Sam’s club’s name is affiliated...
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...Sam’s Clubs GLOBAL INDUSTRY ANALYSIS - CASE STUDY Wal*Mart Stores, Inc. a presentation p 1 Sam Walton Founder of Wal*Mart Stores, , Inc. Performance of Wal*Mart 20-year average return on equity of 33% Compound average sales growth of 35% Market value = $57.5 billion $ Wal*Mart Sales per square foot $300 Industry average $210 WAL MART Background 2 Year 1988 CEO: David Glass COO: Don Soderquist How to sustain the company’s phenomenal performance? 1987 Net sales Net Income Number Of Stores Number Of Stores Discount Stores Sam’s Wholesale Clubs Supercenters 1,114 84 N.A. 1,953 419 68 15,959 628 1993 67,345 2,333 WAL MART Background 3 Number of Stores (1994) 0 500 1000 1500 2000 Hypermarkets Warehouse Clubs Warehouse Outlets Wal*Mart Stores WAL MART Background 4 Where Emerged in the U.S. g When Mid-1950s Top 10 discounters in 1962 Wal*Mart remained only The industry became more concentrated Discount store companies p operated 50 or more stores accounted for 82% CR5 (1986) 38% 62% CR5 (1993) 29% 71% WAL MART 5 Discount Retailing Discount Retailing Industry Sa ales Grow wth 30 20 10 0 25% 9% 11.2% 7% WAL MART 6 Discount Retailing Comparative Pricing Study, 1993 WAL MART 7 Discount Retailing Overall Performance of Discounters WAL MART 8 Discount Retailing Year 1945 Ben Franklin franchise store In 1950s 15 stores Year 1962 Wal*Mart Discount City store Year 1969 18...
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...Harvard Business School 9-794-024 Rev. August 6, 1996 DO Wal*Mart Stores, Inc. In Forbes magazine’s annual ranking of the richest Americans, the heirs of Sam Walton, the founder of Wal*Mart Stores, Inc., held spots five through nine in 1993 with $4.5 billion each. Sam Walton, who died in April 1992, had built Wal*Mart into a phenomenal success, with a 20-year average return on equity of 33%, and compound average sales growth of 35%. At the end of 1993, Wal*Mart had a market value of $57.5 billion, and its sales per square foot were nearly $300, compared to the industry average of $210. It was widely believed that Wal*Mart had revolutionized many aspects of retailing, and its was well known for its heavy investment in information technology. David Glass and Don Soderquist faced the challenge of following in Sam Walton’s footsteps. Glass and Soderquist, CEO and COO, had been running the company since February 1988, when Walton, retaining the chairmanship, turned the job of CEO over to Glass. Their record spoke for itself—the company went from sales of $16 billion in 1987 to $67 billion in 1993, with earnings nearly quadrupling from $628 million to $2.3 billion. At the beginning of 1994, the company operated 1,953 Wal*Mart stores (including 68 supercenters), 419 warehouse clubs (Sam’s Clubs), 81 warehouse outlets (Bud’s), and four hypermarkets. During 1994 Wal*Mart planned to open 110 new Wal*Mart stores, including 5 supercenters, and 20 Sam’s Clubs, and to expand...
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...topic has to go all the way back to the beginning stages of the company. From the birth of the company to present day empire it has created, one question must be answered: corporate giant or corporate beast? Wal-Mart has a long history and they have been around much longer than what most people think. The founder of Wal-Mart was Sam Walton. Sam Walton was born into a farmer’s family in Kingfisher, Oklahoma on March 29, 1918. [31] He had one brother whose name was James Walton. Sam’s father was a farmer until he decided that farming was not producing enough revenue and decided to become a mortgage man. Sam grew up in the great depression where he learned many moral values like working hard. He had many odd jobs so he could help his family out with money. The family then moved to Florida, while there Sam became the youngest Eagle Scout in the state’s history. After graduating from high school Sam decided to further his educations and enrolled at the University of Missouri as an ROTC cadet. Sam graduated in 1940 with a degree in Economics and was named the class president. Wal-Mart was not Sam Walton’s first store that he owned. In 1945 Sam Walton opened the first Ben Franklin franchise in Newport, Arkansas. He started the stores with five-thousand dollar...
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...Background Wal-Mart Stores, Inc. is a public corporation that runs a chain of large discount stores and a chain of membership required warehouse stores. Sam Walton founded the company in 1962, and since then Wal-Mart has become a global company with annual sales of $405 billion for the fiscal year of 2010 (Wal-Mart Corporate). In 1992, Sam Walton passed away and many doubted the future of the company under the leadership of David Glass, CEO and Don Soderquist, COO. The Company suffered in April, 1993 when the growth of the company had fallen under 10% since 1985. At the same time their stock price fell 22-26% destroying nearly 17 billion in market value (Wal-Mart Corporate). Glass and Soderquist had their work cut out for them, they needed to come up with a strategy to keep their competitive advantage in the industry. The following analysis will explain Wal-Mart's competitive advantage in discount retailing, whether they will be able to sustain their position in the discount retailing industry, and the effectiveness of their diversification into the food industry. What is Wal-Mart's competitive advantage and the sources of its competitive advantage in discount retailing? Wal-Mart’s main competitive advantage in discount retailing has always been providing the lowest possible prices on brand name goods to customers (Bradley 4). The “everyday low prices” approach is the biggest reason why Wal-Mart has become the leader in the retail industry. There are a number...
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...Wal-Mart and the Chinese Market Kristen Dawdy International Business Instructor Kip Roddenberry October 18, 2015 Wal-Mart and the Chinese Market Wal-Marts biggest reason for entering the Chinese market is because it was a way to receive products at a cheaper rate, allowing the price of the products to be lower. Wal-Mart is known for having low prices, and the Chinese market is what makes this possible. If they were to purchase their items from a country that charged them more, then the consumers who shop at Wal-Mart would be paying double of what they pay now. It all breaks down to supply and demand. “Wal-Mart has operated in China for 16 years. According to its web site, Wal-Mart “opened its first Supercenter and Sam’s Club in Shenzhen in 1996.” By March 2012, it ran Supercenters, Sam’s Clubs, and Neighborhood Markets in China. Its footprint then included “370 units in 140 cities in 21 provinces and four municipalities.” And Bloomberg reported that as of October 2011, Wal-Mart’s China sales totaled $7.5 billion” (Cohan, 2012). Sixteen years is a long relationship for Wal-Mart and the Chinese market, and it has been proven to be worth it for both of them. Everything Wal-Mart has done has proven to be an advantage for the company. They have over 4,000 stores worldwide, and over 3,000 of those are supercenters. The supercenters bring in the most money because it allows people to shop for multiple categories of items without having to go to another store. This is what...
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...reading as well. The strategic management process and why it is necessary for a company will be the covering elements of this paper (University of Phoenix, 2015). Environment Scanning Environmental scanning is a systematic process that interprets and surveys critical information to identify threats and external opportunities. An organization collects data internally, its competitors and the outer world. A company should then take the collection of data and readjust its strategies when the need is suitable. Gathering information about the world in which the business operates, focusing on competitors, and internally scan the organization is the key steps to conducting an environmental scan (Society for Human Resource Management, 2015). Strategy Formulation Strategy is a roadmap to business success and within that strategy, is strategy formulation. Strategy formulation is the process of developing the actual plan. A series of sequential executable steps have to be in organizing order. The reason that it is important, the steps be in order, is because the steps progress upon one another. The two process, which are on a continuous bases throughout strategy formulation, is environmental scanning and implementation. The order, in which strategy formulation should take place, define the organization, vision, and...
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... was quoted as saying, “Could we be two times larger? Sure. Could we be three times larger? I think so.” The question then becomes, is this healthy for the U.S. business climate as well as for Americans in general? Wal-Mart’s growth is two fold. First is their “Everyday low prices”(EDLP) model combined with their low-wage and little to no benefits model. Through maximizing these models, Wal-Mart has grown into the super giant they are today. This has created a reputation for them as the corporate bully or the wimpy rich kid who owns the bat and ball. Either way they control the game and the output. Which leads to our discussion today, where we will take a look at the company from a variety of angles and viewpoints, some of their key issues, review a SWOT analysis that will guide us to our decision and why we believe this is the best path forward for Wal-Mart. Questions to keep in mind as we go along are: “Does Wal-Mart know what’s best?” and “Do consumers even care?” Whether one is a fanatic of Wal-Mart, or resents the image that they portray, this company and what they are doing can’t be ignored. The Company A few short decades ago, in the early 1960’s a small company was founded in the rural Arkansas that would blossom into one of the most powerful global corporations, Wal-Mart. On July 2, 1962, Sam Walton opened the first of now over 4,900 worldwide stores in Rogers, Arkansas. (Walton and Huey)...
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...500 Component | Industry | Retail | Founded | 1962, Rogers, Arkansas, U.S. | Founder(s) | Sam Walton | Headquarters | Bentonville, Arkansas, U.S. | Number of locations | 11,088 (April 2014) | Area served | Worldwide | Key people | S. Robson Walton (Chairman) Doug McMillon (President & CEO) | Products | Apparel/footwear specialty, cash & carry/warehouse club, discount store,hypermarket/supercenter/superstore,supermarket, eCommerce | Revenue | * * US$ 476.294 billion (2014) * US$ 468.651 billion (2013) | Operating income | * US$ 26.872 billion (2014) * US$ 27.725 billion (2013) | Net income | * US$ 16.022 billion (2014) * US$ 16.999 billion (2013) | Total assets | * US$ 204.751 billion (2014) * US$ 203.105 billion (2013) | Total equity | * US$ 81.339 billion (2014) * US$ 81.738 billion (2013) | Owner(s) | Walton family | Employees | 2.2 million (2013) | Divisions | Walmart Canada | Subsidiaries | Asda, Sam's Club, Seiyu Group,Walmex, @WalmartLabs, Walmart eCommerce | Website | Corporate.Walmart.com Walmart.com | Executive Summary: Wal-Mart has shown continued success in their use of information technology with e-commerce, a system that allows managers to view point-of-sale information, and the possible use of RFID chips in the near future. After reviewing the 2005 Harvard Business School study of Wal-Mart, it is evident that this company has been successful in expanding its...
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...and external structure. The opportunities the company took advantage of and as well as the weaknesses they encounter. Wal-Mart was founded by Sam Walton in 1962. Sam Walton was a former J.C Penney employee who had a vision to sell products at the lowest price possible. He opened up his small store in Bentonville Arkansas in 1962 under the name “Walton’s Five and Dime”, later that year he opened the first store under the Wal-Mart brand. Within five years of business, Wal-Mart expanded outside of its home state to Missouri and Oklahoma. Sales sky rocketed and owner Sam didn’t hesitate to expand even further. By its twenty fifth anniversary there were 1,198 stores. In 2012, “Wal-Mart and the Wal-Mart Foundation gave more than $1 billion in cash and in-kind contributions around the world. This includes $1 billion in cash and in-kind gifts in the United States and $82.2 million in cash and in-kind gifts in international markets. In addition, Wal-Mart, Sam’s Club and Logistics associates volunteered more than 2.2 million hours, generating $18 million to U.S. nonprofits” (Wal-Mart 2012). To give you an idea of what Wal-Mart is all about I plan on breaking it down to a smaller business and not focusing on the business as a whole, but the internal work of it all. Wal-Mart maybe too large and worldwide to talk about in one paper, so I plan to make it smaller and give you an idea of what they are up...
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...AMERICAN CORPORATION ANALYSIS A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-3-american-corporation-analysis Visit Our website: http://hwsoloutions.com/ Product Description ACC 561 Week 3 American Corporation Analysis, American Corporation Analysis The reasoning behind financial analysis is to give a better perspective about the financial structure and profitability position of the corporation. Such corporations as Wal-Mart Incorporated benefit considerably from a financial analysis because it assists in determining the durability in handling sales, assets, and debts. Wal-Mart was established in 1962 by Sam Walton in Rogers, Arkansas; by 1967 24 stores were open with a $12.7 million sales revenue. In 1970, the corporation became a publicly traded company with stocks at $16.50 per share. Ten years later Sam Walton reached $1 billion in sales annually, beating out other major competitors. In 1990, Wal-Mart was the number one retailer nationally, and continued its success by going international. Today, Wal-Mart employs 2.2 million associates in North America and internationally, serving over 200 million customers weekly at more than 11,000 stores. Horizontal Analysis After completing the horizontal analysis of Wal-Mart’s consolidated balance sheets for the years of 2011 and 2012, several elements stand out with significant variances. For example, Wal-Mart’s cash and equivalents decreased by 11% while total assets increased by 7%. Prepaid expenses...
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...thanks to NAFTA, but Wal-Mart had a competitive strategy and they took full advantage of NAFTA’s implementation of lower tariffs. b.) Wal-Mart is a special case because of their competitive strategy; Founder of Wal-Mart, Sam Walton became involved in a joint venture with Mexico’s leading retail store called Cifra. They Opened Sams Club in 1991 to establish their presence there in Mexico, while the Canadian and American free trade negotiations were happening. c.) Wal-Mart purchased enough shares in the company to take over and expand into Central American starting a retail powerhouse. Nafta opened up the gates and Wal-Mart took full advantage. d.) Purchased woolco stores in Canada as well. Implemented same strategy. 4. What do you think of Wal-Marts strategy in Mexico and Central America and how have bilateral agreements and geographic proximity played a role in their success? What challenges do you think Wal-Mart de Mexico e centramerica will face as it continues to expand in Mexico and Central America? a.) The way Wal-Mart conducts their business internationally in nothing short of amazing. They have countless binary agreements with countries since they have a plan of establishing Wal-Mart subsidiaries and eventually expanding their business to fit the culture of whatever country they are in. b.) They have not only giant retail stores but also grocery stores...
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...Walton,the leader (strategy Vector) innovative vision,tech savvy, and observing business practices, keeping one step ahead of the ever-changing technology and methods of today’s fast-paced business environment. Strike a comfortable balance between increasing its profits and recognizing its social and ethical responsibilities. Why is Wal-Mart so Successful? Is it Good Strategy or Good Strategy Implementation? Vector Core Values What ,And why analysis The Wal-Mart Philosophy — Wal-Mart is successful not only because it makes sound strategic management decisions, but also for its innovative implementation of those strategic decisions. Regarded by many as the entrepreneur of the century, Walton had a reputation for caring about his customers, his employees (or “associates” as he referred to them), and the community. In order to maintain its market position in the discount retail business, Wal-Mart executives continue to adhere to the management guidelines Sam developed. Walton was a man of simple tastes and took a keen interest in people. He believed in three guiding principles: 1. Customer value and service; 2. Partnership with its associates; 3. Community involvement (The Story of Wal-Mart, 1995). The Customer — The word “always” can be seen in virtually all of Wal-Mart’s literature. One of Walton’s deepest beliefs was that the customer is always right, and his stores are still driven by this philosophy. When questioned about Wal-Mart’s secrets of success, Walton...
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...Wal-Mart: Strategic Plan [pic] Strategic Plan Saren Thompson BUS 413 TABLE OF CONTENTS Introduction Page 3 Mission Statement Page 4 Macro-Environmental Analysis Economics Page 5 Demographics Page 6 Socio-Culture Page 8 Political/ Regulatory Page 11 Technological Page 13 Micro-Environmental Analysis Industrial Page 14 Markets Page 16 Competition Page 18 Supplier Page 19 Resources Page 20 Preferences Page 22 Opportunities and Threats Strengths and Weaknesses Page 23 Opportunities and Threats Page 25 Opportunity Analysis Page 27 Alternative Strategies Formulation Page 28 Ranking Strategies Page 28 References Page 29 INTRODUCTION Wal-Mart is the top retail company in the United States and has grown from a small customer centered store in Arkansas to an International Retail Store. This company was founded in the 1962 by Sam Walton. Walton and wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas. He traveled abroad to study retail and believed it was the future. His company began a success and the Wal-Mart empire began when it was incorporated October 31, 1969. Wal-Mart stock was first traded over the counter as publicly-held company in 1970. Since Wal-Mart has had eleven 100 percent stock split as of March of 1999. The company has grown to new levels and I hope to introduce and inform throughout this paper. ...
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...Battling Wal-Mart by Neal Peirce The Wal-Mart Watch campaign, a labor-environmental group highly critical of America's mega-mega retailer, recently launched more than 1,000 events nationwide for its "Higher Expectations Week." "Wal-Mart: The High Cost of Low Price," a scathing documentary by independent filmmaker Robert Greenwald with a focus on Wal-Mart's business tactics and treatment of workers, began to play to audiences across the country. Wal-Mart is fighting its critics with waves of television ads celebrating happy workers and the company's gifts to local charities. But the action goes much further. Across state capitals, legislators are into spirited debates over whether Wal-Mart should be forced to pay adequate health benefits or leave it to the states to subsidize its low-paid workers through Medicaid and other public benefits. Scene of the biggest current fight: Maryland, where Gov. Robert Ehrlich vetoed a measure to require any company with more than 10,000 workers -only Wal-Mart qualifies -- to spend at least 8 percent of payroll on health benefits. Or, alternatively, to contribute significantly to the state's health insurance program. An override vote on Ehrlich's veto is set for January. Wal-Mart has deployed at least a dozen lobbyists to Annapolis, offering goodies such as a $10,000 gift to underwrite a conference of black legislators. In one sense, all of this is predictable: With annual sales of $288 billion and 1.6 million employees, Wal-Mart is now the world's...
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