Synopsis
Sam Walton the founder of Walmart passed away in 1992. He had founded Walmart Stores with the concept of discount stores in small towns and brought the concept to the lofty stature of the biggest retailer in the US and then the world. In 2001, Walmart knocked off ExxonMobil to become the world’s biggest firm in revenues, with sales of $217.8 billion to ExxonMobil’s $187.5 billion. Walmart continued an aggressive expansion worldwide but some of its effort were not very successful. More than 80% of its revenue came from Canada, Mexico, and the U.K.
The ingredients of success of Walmart were the management style and employee orientation. Mr. Walton cultivated a management style that emphasized individual initiative and autonomy over close supervision. To controlling costs and always keep the sticker price down, the corporation uses the state-of-the-art technology in its warehouses and distribution centers.
Their attempt to expand to the banking business has encountered opposition from the banking industry, unions and consumer groups. However, the pharmaceutical side was a blast of success. The $4 drug program has forced all competitors to cut down on their price too. They achieve quickly what the US governments have striven for decades to accomplish unsuccessfully. That is a significant benefit to consumers.
Questions
1.a – I would have diverse my stocks by selling different brands and having all kinds of items available. I would negotiate discounts with the manufacturers and suppliers and give promotional discounts to the consumer periodically in order to keep them coming. I would distribute flyers mentioning my sales, the specials and the variety of brands that are available in my hardware stores.
1.b – In this case, it seems easy to compete with Walmart because it sells just a few brands in the men’s clothing lines. But the big issue is to attract