Case Analysis on Walmart

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Wal-Mart Case Analysis

Introduction

Wal-Mart first store was opened in 1962 by Sam Walton and his wife Helen Walton. They had the main idea of opening a discount oriented shopping store all through the rural American. The first store was opened in Rogers, Arkansas from where the stores spread to other regions. The company grew rapidly incorporating Wal-Mart Stores Inc. just after a period of seven years. Within 8 years, the company was able to open the first distribution center in Arkansas and also be valued at the New York stock Exchange. By 1991, the company opened the first international center in Mexico City an achievement that has seen opening of several other stores internationally.

Identification and Analysis of Corporate Strategy

The main strategy that was emphasized by Wal-Mart was that of the control of prices and costs to attract more customers. Walmart had the idea of lowering the prices of its commodities and services to ensure that they attracted more customers as well as retain them too. With opening of retail stores that offered one stop shopping centers, Wal-Mart was able to grow more than its competitors. Consumers for a long period valued one stop shopping centers where they could find a variety of goods at the same time to ensure convenience and minimize time spent during shopping trips. Walmart stores took this strategy to open all purpose stores with grocery, clothing and other commodities available. They combined supermarkets and discount retail stores in the same building. This strategy of providing all purpose shopping centers with as low prices as possible is what drove Wal-Mart to unbelievable growth and expansion during its first years. Within a period of 15 years, Wal-Mart had grown to more than 30 retail stores in small towns of the United States such as Arkansas and…...

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