World’s largest discount retailer shows
the importance of ‘Standing for something’…
Sam Walton, founder of Wal-Mart, grew up in a farm community in rural Missouri during the Great Depression. The poverty he experienced while growing up taught him the value of money early in his life. Sam Walton opened the first store in 1962 in Rogers, Arkansas. Today Walmart has 8,500 stores in 15 countries, under 55 different names. It is also the biggest private employer in the world with over two million employees, and is the largest retailer in the word and also one of the largest globall companies with an annual revenue of over US$446 Billions.
Many companies have tried to replicate the model of Walmart but none of them have succeeded in coming close to it. There is something about Walmart that makes it unique. Walmart started with a simple philosophy by Sam Walton: Offer shoppers lower prices than they get anywhere else. This basic strategy has shaped Wal-Mart's strategy and drove the company's growth, making it a phenomenal success..
Sam Walton, founder of Wal-Mart, grew up in a farm community in rural Missouri during the Great Depression. The poverty he experienced while growing up taught him the value of money early in his life. Sam Walton opened the first store in 1962 in Rogers, Arkansas. Today Walmart has 8,500 stores in 15 countries, under 55 different names. It is also the biggest private employer in the world with over two million employees, and is the largest retailer in the word and also one of the largest globall companies with an annual revenue of over US$446 Billions.
Many companies have tried to replicate the model of Walmart but none of them have succeeded in coming close to it. There is something about Walmart that makes it unique. Walmart started with a simple philosophy by Sam Walton: Offer shoppers lower prices than they get anywhere else. This basic strategy has shaped Wal-Mart's strategy and drove the company's growth, making it a phenomenal success..
WalMart’s
slogan “our people make the difference” depicts the importance of an individual
worker. Their philosophy of
maintaining the highest customer service is shown with their three critical
elements of the “sundown rule,” the “ten-foot rule,” and the “everyday low
prices” rule.
Offering the lowest prices everyday, will increase the volume of
sales, as well as bring added value for the consumers. With huge volumes of sales across the categories. Walmart is in a position to bargain for tremendous concessions from the vendors, which help it to offer the lowest yet profitable prices to all its customers, thus making it win-win for everyone.
Sam Walton's followed simple values focused on providing best service to its customers at lowest prices. They are:
i) Treat the customer right.
ii) Take care of your people.
iii) Be honest in your
dealings.
iv) Pass savings along to the customer.
vI) Keep things simple, think small,
control costs and
vi) Continuously improve operations.
Some of the key principles
that enable Walmart to beat its competitors and succeed are:
- Commit to your business.
- Share your profits with your associates, treat them as partners.
- Excellent Inventory Management.
- Powerful Distribution Network.
- Focus on low cost to the customers.
- Operate at least margins.
- Focus on Volume of trade.
- Striving for excellence in all operations.
- Leverage Technology to gain the edge.
- Plan and control to stay ahead of competition.
- Rich Customer Experience.
Today Walmart has achieved a sense of invincibility among the organizations globally and yet continuously strives to be the best in its business.
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