Walmart Case Analysis : Walmart

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Walmart revolutionised the department store structure by drawing consumers away from the classical approach into an urban utopia. Walmart has a high distribution footprint, on average, since 1962 Walmart has acquired 125 stores each year, making them a monumental player in the department store industry. Walmart started as a monopoly occupying the entire market as the original mass commercial outlet. For some time, Walmart was considered a hypercompetitive environment because of new threats flooded the market. Since the competition was direct and fervent, gaining competitive advantage was temporary, until the company introduced five retail divisions and five specialty division. By doing this they deviated themselves
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Walton founded the Managerial philosophy based on three basic beliefs; “respect for the individual, service to our customer, and striving for excellence” the philosophy connects key goal analogous issues to collaboration issues creating a universal way of approaching affairs. The philosophy then encompasses an emphasis on the lowest possible prices available along with preeminent service to all customers.

The management functions of planning and controlling is immensely important to the growth of the company. Walmart began expanding into new markets capitalizing on their niche market; Low income families, low quality, and low price. Walmart enter into emerging markets as a globalization strategy; the acquisition of Canadian company Woolco enabled Walmart to begin their transition to the Canadian market. This purchase move is known as related diversification since Walmart gained exponential growth from acquiring a business that was related to the market Walmart was capitalizing from. Woolco was a particularly pivotal move on Walmart’s end, the company gained entry to the Canadian market which was an attractive industry considering they bought out their largest competitor; therefore, there is minimal treats. They also acquired premium space and locations. Walmart continues to use a globalization strategy to expand into new markets around the world, to date there are

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