INTRODUCTION TO WALMART 

INTRODUCTION
If we work together, we'll lower the cost of living for everyone...we'll
give the world an opportunity to see what it's like to save and have a
better life.
“​CEO OF WALMART​”

Introduction Walmart Stores Inc. is synonymous with low prices and name brand quality
products. The company basis of success and foundations cannot be credited to the current
CEO Lee Scott but famed Sam Walton. Walmart formula for success simply put is their
relationship with customers,employees, and technology that assists in forming relationships
with their suppliersplaces Walmart Stores Inc. as the top discount retailer.
History,Development, and Growth Sam Walton led Walmart to become the top discount
retailer. The mega corporation has eliminated top competitors such as Kmart and Sears to
reign supreme over the discount retailing market. Following World War Two, discount
retailing evolved due to frugality during the war. Walton opened the first Walmart in
Rogers,Arkansas in 1962. The philosophy Walton acquired to start Walmart began with his
earlier experience at JC Penny. The philosophy is based on delivering products based on
quality and value combined with superb customer service. Walmart initially set out by
expanding in small towns and gained not just a reputation for low prices but a family friendly
company. The departments were wide and varied to includefamily apparel, toys,lawn and
garden,health and beauty,household goods,crafts, fabrics,jewelry and most recently
pharmacies,electronics,tire and lube and the latest gas stations. Sam Walton strategy was to
gain dominance by deep discounting,listening and forming relationships with employees and
customers and assuring the consumer quality product.
HISTORY OF WALMART 
 HISTORY
Walmart as we know it today evolved from Sam Walton’s goals for great value and great
customer service. “Mr. Sam,” as he was known, believed in leadership through service. This
belief that true leadership depends on willing service was the principle on which Walmart
was built, and drove the decisions the company has made for the past 50 years. So much of
Walmart’s history is tied to the story of Sam Walton himself, and so much of our future will
be rooted in Mr. Sam’s principles.

Important Features of Walmart’s History:

Sam Walton's strategy was built on an unshakeable foundation: The Lowest Prices Anytime,
Anywhere​.

❖ 1962
On July 2, 1962, Sam Walton opened the first Walmart store in Rogers, Ark.

❖ 1967
The Walton family owned 24 stores, ringing up $12.7 million in sales.
❖ 1969
The company officially incorporated as Wal-Mart Stores, Inc
❖ 1970
Walmart became a publicly traded company. The first stock was sold at $16.50 per
share​.
❖ 1972
Walmart was listed on the New York Stock Exchange (WMT). With 51 stores,
Walmart recorded sales of $78 million.
❖ 1980
In the 1980s, the first Sam's Club opened, serving small businesses and individuals,
and the first Walmart Supercenter opened, combining a supermarket with general
merchandise. ​Walmart reached $1 billion in annual sales, faster than any other
company at that time. Walmart had 276 stores and employed 21,000 associates.

❖ 1987
The company installed the largest private satellite communication system in the U.S.,
linking the company's operations through voice, data and video communication.
❖ 1993
 Walmart celebrated its first $1 billion sales week​.
❖ 1996
Walmart opened its first stores in China.
❖ 1997
The company celebrated its first $100 billion sales year.
❖ 2002
For the first time, Walmart topped the Fortune 500 ranking of America's largest
companies.
❖ 2007
Walmart.com launched Site to Store service, enabling customers to make a purchase
online and pick up merchandise in stores.
❖ 2014
Doug McMillon succeeded Mike Duke as CEO. The company employs 2.3 million
associates worldwide and serves more than 200 million customers each week at more
than 11,000 stores in 27 countries.
COMPANY’S BACKGROUND 
 Company Background

Key Facts

Name Wal-Mart Stores, Inc.

Logo

Industries
Retail (Discount department stores and warehouse stores)
served

Geographic
Worldwide (11,528 stores in 28 countries)
areas served

Headquarters Bentonville, Arkansas, U.S.

Current CEO C. Douglas McMillon

Revenue US$482.130 billion (2016) 0.7% decrease over US$485.651 billion (2015)
 Profit US$14.694 billion (2016) 1.7% decrease over US$16.182 billion (2015)

Employees 2.3 million (2016)

Costco Wholesale Corporation, Dollar General Corporation, Dollar Tree, Inc.,

Main
Kohl's Corporation, Macy's Inc, Sears Holdings Corporation, Target
Competitors
Corporation and many other retailers/wholesale companies.
 STATEMENTS OF 
MISSION, VISION & GOALS 

MISSION STATEMENT
Walmart's mission statement is ​“Saving people money so they can live better.”
This statement is synonymous to the company's slogan, ​“Save money. Live better.”

VISION STATEMENT

These ideals are emphasized in Walmart’s vision statement: “​To be the best retailer in the
hearts and minds of consumers and employees.​” The company aims to achieve a top
position in the retail industry.

GOAL STATEMENT

Walmart’s goal statement is ​"saving people money so they can live better"​ is the driving
force behind everything we do.
SWOT ANALYSIS OF WALMART 
 SWOT ANALYSIS OF WALMART

STRENGTHS:
In this part of the SWOT analysis, Walmart’s strengths are all related to the size of its
business. These strengths enable the company to withstand threats despite its weaknesses.
Walmart’s strengths for further global​ growth are:

● Global organization size

● Global supply chain
● High efficiency of supply chain
● High level of adaptability
● Efficient management of human resources
● Effective information system

WEAKNESSESS:

● High Employee Turnover:​ Most Walmart’s employees earn minimum wage or lack
basic benefit. Thus, Walmart lack employee loyalty.
● Negative publicity:​ In recent years, ​criticized for its questionable practices such as
bribery of authorities or poor work conditions.
● Little differentiation:​ Walmart is now only one of many major retailers which carry
the same products. Walmart now has to compete with stores such as Target, Amazon,
Kmart, etc…

​ ince Wal-Mart sell products across many sectors (such as clothing,

● Less flexibility: S
food, or stationary), it may not have the flexibility of some of its more focused
competitors.
● Large span of control: ​Wal-Mart is the World’s largest grocery retailer and control of
its empire, despite its IT advantages, could leave it weak in some areas due to the
huge span of control.

OPPORTUNITIES:

● Global Growth:​ Enter new markets and form and cooperate with other business
in Europe or the Greater China Region.
● Online shopping growth:​ Walmart offers a sophisticated online store which provides
the shoppers the convience of shopping from the comfort of their homes.
● Organic Products:​ The growing demand for healthy and organic food options opened
a new avenue for Walmart to explore and grow their presence.
● Business in other countries:​The stores are currently only trade in a relatively small
number of countries. Therefore there are tremendous opportunities for future business
in expanding consumer markets.
THREATS:

● Political problems: A ​ s a global retailer, walmart is exposed to political problems in

the countries and regions where it is currently operational.
● Production issues: I​ ntense price competition is a threat to Walmart. Low cost of
products is driven by the low cost of maufacturing. This means that Walmart is
forced to shift it’s production overseas and compete with other retailer to maintain
low cost production from providers overseas.
● Huge competition: B ​ eing number one means that you are the target of competition,
locally and globally.