Wal Mart 's Business Model

Decent Essays

I chose to do this written assignment about Wal-Mart. Sam Walton founded Walmart on three basic beliefs which are: (1) respect for the individual, (2) service to the customers, and (3) strive for excellence. (Hayden, Lee, McMahon & Pereira, 2002). It is difficult to pinpoint one type of business that Wal-Mart does because it is involved in a myriad of businesses. At its heart, Wal-Mart is what is commonly called in the United States, a big box retailer. This means that the store is divided into various departments such as groceries, clothing, electronics, bank, fast food, nail salon, beauty salon, quick health clinic, and tire centers that include minor vehicle maintenance such as oil changes. Most Wal-Mart stores also have a gas station outside the store. In addition to the retail stores, Wal-Mart also has a members only warehouse called Sam 's Club. This diversification into a myriad of businesses follows Wal-Mart’s business model to dominate all markets. (Hayden et al., 2002). Wal-Mart’s stakeholders are its shareholders, the company executives, its employees, the communities where Wal-Mart is located, the consumers, non-profit organizations, other retailers, labor unions, and politicians. (Hayden et al., 2002). As a result of Wal-Mart’s core drive to dominate every market, it has come under criticism from the majority of its stakeholders. One such criticism has been that local retailers are pushed out wherever Wal-Mart opens up one its retail stores. I have been

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