Walmart's Business Core, And Strategy

1763 WordsJul 29, 20158 Pages
In 1962, the Walton brothers opened the first Walmart store in Rogers, Arkansas. Ten years later Walmart was listed on the New York Stock Exchange with revenues of $78 million. In 2002, it had grown to be the world leader in sales revenue. By 2005, Walmart had become a renown world company by Fortune magazine with 5,289 multi type formatted stores (US and nine other countries), 1.6 million employees and revenues of $285 billion. Sam Walton set to conquer the retailing industry by discounting. Walmart’s business core, and strategy was to be the overall low-cost retail leader of supplying a wide selection of products to its customers. They used the strategic access-based positioning for targeting the modest incomes demographic that valued low prices and would locate their stores in areas where their customers lived nearby. Walmarts Competitive Advantages include: Cost leader with “Every Day Low Prices (EDLP). • The vision for Sam Walton was “We’ll lower the cost of living for everyone, not just in America, but we’ll give the world an opportunity to see what it’s like to save and do better” (Farhoomand, pg. 8). • The lowest cost general merchandise with a variety of selection later attracted and grew a greater customer base of customers. Walmart’s superior cost advantages of controlling cost drivers and finding cost efficiencies in its value chain were directly passed to its customers. • Walmart has loyal customers because it meets and exceeds expectations by
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