Question: Introduction In 2 0 2 1 , Wal - Mart was the largest firm in the world by revenues, with sales of over $ 5

Introduction
In 2021, Wal-Mart was the largest firm in the world by revenues, with sales of over $500 billion,
more than 10,500 stores in 27 countries worldwide, and employing 2.2 million people. In the
United States. Wal-Mart was bigger than the next four retailers combined. It is the largest
grocer in America accounting for 26.2% of the food retail market in the United States. More
than 96% of the U.S. population lived within 20 miles of a Wal-Mart store.
From the outset, Wal-Marts founder Sam Walton focused relentlessly on reducing prices,
cutting costs, and making a living on slim margins. His overarching philosophy was to sell items
that people need every day just a little cheaper than everyone else, and to sell it at that low
price all the time. To make this strategy work, you had to control costs better than the next guy.
By all accounts, Walton made a religion out of frugality, tightly controlling expenses. By keeping
costs as low as possible, he quickly discovered that his promise of everyday low prices attracted
many customers without the need to spend much on advertising.
However, all was not well in Bentonville, Wal-Marts Arkansas headquarters. While the
company continued to perform well, the strong growth of an earlier era was no longer evident.
Not only was the core U.S. market saturated, Wal-Mart was also facing increasing competition
from online retailers, particularly Amazon.com. As of 2021, Amazon was generating $280 billion
in online sales, far more than Wal-Marts $60 billion.
Information Systems and Logistics
Sam Walton was a numbers man. He wanted data on everything, and Wal-Marts information
systems gave him that. In turn, the data gave him and his managers the raw material required
to control his ever-expanding empire, to manage its merchandise offering, inventory turns,
stores and employees.
Wal-Marts growth strategy wadescribe the bussdescribe the business

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!