Walmart is a leading retailer in North America. Walmart Canada Corp. is the Canadian division of Walmart which is headquartered in Mississauga, Ontario. It was founded on March 17, 1994 with the purchase of the Woolco Canada chain from the F. W. Woolworth Company. Walmart incorporated in 1969 and became a publicly traded company a year later. So, Wal-Mart is not family owned, but rather owned by its stockholders.
Each commodity’s price tag is displayed openly to allow easy and smooth shopping. Products are also shelved according to type to enhance fast identification of any product that a customer needs. The key principle of offering the best value at lowest prices is also achieved since the inception of Wal-Mart stores. This culture has been maintained from the beginning and it does not seem to dwindle even in the future. By offering customers best quality products at the lowest prices ensures constant customer visits to the stores as well as strengthened customer
This made manufacturers responsible for managing their stocks in Walmart’s warehouses and stores. This resulted in, Walmart being able to expect almost a 100% order fulfilment on merchandise. Walmart was so aggressive on these supply chain techniques that it drove down its distribution costs to a mere 1.7% of its cost of sales which was better than its competitors like Kmart (3.5%) and Sears (5%). (LU, 2014) Establishing Strategic Vendor Partnerships Walmart focused on strategic sourcing to find products at the best and lowest price from suppliers who are have the capacity to manage the demand requirements. Walmart then establishes strategic partnerships with these vendors by offering them commitments of long term high volume purchase in exchange to the lowest possible prices streamlining the unwanted links in between.
Walmart cooperated with T-Mobile to offer wireless phone services providing customers with a family plan for unlimited text, and voice calls. (Tashia Washington, Bizflent,2017). 4 The recognized mission statement of Wal-Mart is ‘Saving people money so they can live better” consumers save money through Wal-Mart’s low price. Yet, it’s not clear if the company is clear with “live better” there is a criticism on Wal-Mart’s very low price, employees at the end of the day are not sure if they are making commissions or bonuses because of the low price of the products. (Lawler, E. E. (2014) The company’s goal is to achieve a high position in the retail industry with its known vision statement “To be the best in the hearts and minds of consumers and employees”.
In the economy, Walmart takes over a large amount of customers who wants to buy products due to their low price. This makes all the small business goes down due to price structure. For example, if Walmart and a small store is all around the corner, any customer would still choose to go to Walmart because it is larger, it has a variety of choices to choose from, it has more lanes to pay which saves less time, it has a huge parking lot, and it is cost in a cheaper price. All of these are reasons of why people should choose Walmart rather than small businesses. Another cons about Walmart is that it’s been too diverse.
• Domestic markets moving towards saturation • Domestic market (US) accounts for a small percentage of world’s population. • Walmart perception was discount retailing is essential for the developing economies and hence they achieve the double digit growth rates Advantages • Leverage local buying power with US based MNC’s. • Utilize competencies of efficient store management, technology & logistics. When Walmart expanded
Wal-Mart Stores Inc. has been chosen for discussing the major organizational behavior issues which has significant importance on the business activities of the company. This section will focus on providing a brief overview of the organization. Wal-Mart is an USA based multinational retail chain which operates through huge discount departmental stores. The organization was established by Sam Walton in the year of 1962. Headquarter of Wal-Mart is located at Bentonville, Arkansas.
It has been able to identify the dynamic wants of customers and compete with physical store rivals as well as its E-Commerce rivals such as Amazon. This is well showcased from Wal-Mart’s newest strategy of keeping its online prices almost on par to that of Amazon’s. It was seen that Wal-Mart kept its products priced just 0.3% higher than Amazon's listings, clearly exhibiting the company's endeavors to gain a significant market share during the festival