Walmart Case Study

Wal-Mart Case Study

September 20, 2014

Lyle E. Allamon

MNGT 5650

Webster University

Introduction:

Wal-Mart is the largest retailer in the world. It has the highest gross profits of any company in the world as well as the highest net profits. Anyone can walk into a Wal-Mart and buy groceries, toys for your kids, electronics, computers, firearms, fishing equipment, get a haircut, go to the bank, and have your car’s oil changed all in one visit under one roof. Wal-Mart’s new slogan is “Saving people money so they can live better.” (Wal-Mart Our Story) Every week, more than 245 million customers and members visit their nearly 11,000 retail units under 71 banners in 27 countries and e-commerce websites in 10 different countries. Wal-Mart employs 2.2 million associates around the world with 1.3 million in the U.S. alone. (Wal-Mart Our Story) Wal-Mart strives to provide their services and products at better prices than their competitors. This paper will attempt to provide an analysis of Wal-Marts business practices and challenges that come with being the world’s largest retailer.

Company History:

In 1962, Sam Walton, founder of Wal-Mart, opened the first Wal-Mart store in Rogers, Arkansas. He created a low price approach to retail that would soon become a model all of its stores would follow, which was to sell brand name merchandise at lower prices.(Wikipedia, 2014) Within the first five years of business, Wal-Mart expanded to 24 stores across Arkansas and reached $12.6 million in sales. Wal-Mart continued to grow at an alarming rate since their inception and by its 25th anniversary in 1987 there were 1,198 stores with sales of $15.9 billion. The first Wal-Mart Supercenter opened in 1988 stocking everything the original Wal-Mart stores did but also included a full-service supermarket, tire and lube express, optical center, garden center, and numerous alcove shops such as hair and nail salons, local bank branches, and fast food chains. (Wikipedia, 2014) In 2008,...