Introduction to Wal Mart
Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue and is founded by Sam Walton in 1962. It is the largest private employer in the world and the fourth largest utility or commercial employer. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U.S. It also owns and operates the North American Company, Sam's Club. History
1962 – Wal-Mart begins
Before opening Wal-Mart, Sam traveled the country studying everything he could about discount retailing. He became convinced American consumers …show more content…
According to the Wal-Mart Annual Report 2008, the net sales in 2008 are about $374.5 billions dollar, and the operating income is $22 billions. Both values are increased comparing to the past result. Also the earning per share is $3.16, the increased value in earning per share means that the business performance of Wal-Mart is improved. And became more mature.
Also, according to the Annual Report, the free cash flow in Wal-Mart is increased 25% compared to last year at the same time. So it provided more capital to Wal-Mart to further develop the business.
Critical Success Factor
The Customers Caring Policy
Wal-Mart cares the customer service level. They believed that a good quality service could make customer stay, and attract more customers. Also they adopted come policies, which put customers at the first priority. The policy likes Every Day Low Prices (EDLP) aim to provide a very low price of products to customers. These kinds of customers caring policy further attracts customers, and it also increase the total sale and the profitability.
Developing a world class logistics program
In the early Wal-Mart strategy in America, all the Wal-Mart stores are built around the small towns. A perfect logistic network is built on each