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Wal-Mart Analysis

Wal-Mart's Boundary-Less Communications in Retailing

Wal-Mart's success in the United States is due to Sam Walton's aggressiveness in buying in quantity for less, passing the savings on to the consumers, and expanding to other market areas. Walton developed a way to sell things cheaper, change the economy, change the way we shop, outgrow other retailers and make his business while earning a fortune in the United States. Walton's innovation was to keep the prices lower while increasing the customer base. His strategy was to have boundary-less communications with the world. The first Wal-Mart was opened in Rogers, Arkansas in 1962. Walton, seemed to be an unsophisticated man, yet received the nation's highest honor, The Medal of Freedom, from President George W. Bush, Sr. Walton's achievements helped the company as it has expanded around the globe. Walton died in 1992 at the age of 72, and left behind a legend instilled into others for the continued success of the company.

Wal-Mart executives continue Walton's innovations as they intend to change the retailing landscape internationally exactly the same way they changed it domestically. The company utilizes a variety of retail formats, including discount stores, super-centers tha


Wal-Mart has utilized the strategy of chain acquisition, joint venture, and organic development in its global expansion. Wal-Mart executives seek to put their company in first place with a boundary-less retailing business. Wal-Mart started with a joint venture in Mexico with Cifra SA, Mexico's largest retailer. Despite having a partnership in Mexico, blunders were made. Management executives encountered poorly translated signs and a merchandise assortment that included inappropriate items. Some of the inappropriate items were ice-skates, leaf blowers, and riding lawn mowers. To make the matters worse in Mexico, Wal-Mart's information system would automatically re-stock merchandise that local managers tried to close out. The Mexican stores sold American-style packaged meat and vegetables, which many shoppers preferred to purchase fresh from small neighborhood stores. Wal-Mart seemed to lack the control that translated into low prices in the United States. As the director of administrations commented, “The key to this market is distribution.” The retailer who solves that will dominate (Keegan and Green 521).

All of the adaptations for better communication with consumers have bettered Wal-Mart's appeal. However, the major goal of any industry is to build and maintain profits. Wal-Mart purchases in very large quantities and then passes on more savings to consumers while other retailers must purchase in smaller quantities. The size and scale of Wal-Mart's operation give the executives t

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Approximate Word count = 1009
Approximate Pages = 4 (250 words per page double spaced)


  

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