Essay on Wal-Mart

690 Words 3 Pages
Case Analysis: Wal-Mart

Sam Walton founded wal-Mart in 1962. Much of Wal-Mart’s success can be attributed to him. He was very simple and ran his company that way. He emphasized hard work and ambition. When the company was in its earlier stages he made it a point to visit every Wal-Mart once a year. He didn’t just visit each Wal-Mart and talk with management. He would lead a cheer with the associates. The term associates, which he picked up from his experience working for JC Penney’s. He also ran a Ben Franklin franchise with his brother that became extremely profitable. He eventually lost the lease on the store and founded Wal-Mart. They originally started off with 15 stores in the state of Arkansas. David
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The same culture that Mr. Sam himself had emulated. Along these same lines, they emphasized a high value for associates, which is what they call their employees. As well as being more service oriented. They also found the delicate balance between having low prices and appearing too cheap.

External Environment
During the 80’s and early 90’s retailers when through some difficult times. There was a large increase in competitive pressure, which resulted in much lower margins. At the time most households did not have much discretionary spending. Therefore consumer spending was very limited. There was only enough money for the “essentials.” The entire economy was in a recession. Around 1998, unemployment was at an all-time low. Total household income was up and inflation was very low. All of a sudden buying power was higher and consumers were willing to buy. The United States is still experiencing one of the longest periods of economic expansion in its history.

Strengths·     Distribution centers·     Culture·     Inventory System·     Bargaining      Weaknesses
Opportunities·     More stores·     Incorporate grocery items·     Buy out remaining competition     Threats·     Competition

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