History and Development Over Time
Wal-Mart, founded by Sam Walton in 1962, has become the most profitable corporation on Earth. In 2002, Wal-Mart topped the Fortune 500, which was the first time a non-manufacturing firm has done so. Sam Walton built his business on three basic principles: 1) respect for the individual, 2) service to the customer, and 3) striving for excellence (Mikeman, A., Floyd, W.).
Capitalizing on those founding principles, Wal-Mart has become the largest retail company in the world, earning over 244.5 Billion dollars per year. Wal-Mart offers low prices on everything from groceries to electronics. From its humble beginnings, the company is now a force to be reckoned with in both national and international markets. It now has stores in more than ten different countries with more on the way. As a result of its size and consistently low prices, Wal-Mart is driving smaller companies out of business.
With over four thousand stores and 1.3 million employees worldwide, the company serves more than 100 million customers weekly, in all fifty states, Puerto Rico, and several nations around the globe (www.walmart.com, Fact-Sheet – Wal-Mart at a glance, 2002).
Relevant Issues Delineated in the Case Study
Wal-Mart domestic sales have flattened and the discount market is saturated. This is the primary reason why the company is seeking opportunities for further expansion and growth. In its effort to dominate the retail market everywhere, Wal-Mart is breaching out into new sectors of retailing such as grocery sales, automotive repair, pharmacies, and home improvement (www.fortune.com).
Internationally its expansion strategy has been very aggressive and powerful. Wal-Mar ...