When you mention Wal-Mart, the word itself makes the competitors of the company from all over the world fear (Vance 1994). Historically, the retail chain has been able to expand its business globally, and in every place or market the retail chain opens a store, it manages to compete, survive and even thrive (Brunn 2006).
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The success of the retail chain has been achieved due to its business strategy known as ‘pockets’. The retailing has been able to compete effectively because it has been able to manage and identify its niche or unique market (Fishman 2006).
At the Wal-Mart, every employee is required to think, and behave like a retail trader, whether working in human resources department, information technology department, or accounting department. Every employee or worker is expected to focus on how he/she can improve the services at the store chain (Fishman 2006).
Even workers from headquarters are required to visit their chain’s stores, so that they can get a clear view on problems affecting the company (Vance 1994). Wal-Mart has realized that supplying its stores with the right goods would be a benefit for the company as these products would sell well. Thus, providing a satisfactory service to their customers is an important business strategy that has helped the retail chain to gain its loyal customers (Vance 1994).
Additionally, Wal-Mart business strategy has created an exciting shopping environment or experience for the customers or shoppers (Brunn 2006). Both the store managers and the workers of this retail trade system have been seen to work very hard in making the company to be the destination of choice for shopping for the value-driven customers.
Wal-Mart products (goods) and services are tailored or customized to meet the needs of the local consumers, while the price points are sharp. These tailored or customized products (goods) and services give local customers or consumers the feeling of satisfaction, so they do not “shop anywhere else except at Wal-Mart” (Fishman 2006).
Wal-Mart retail chain has many stores in different parts of the world, and this has helped the company in negotiating better prices with its suppliers and manufacturers (Vance 1994).
And because of its purchasing power, Wal-Mart stores have been able to sell their products (goods) at a price that customers or shoppers can afford. For this reasons, other retail businesses around the world often buy Wal-Mart products to re-sale at their own shops. That is why, it is so difficult for other competitors to sell the same products as Wal-Mart do (Fishman 2006).
Wal-Mart headquarters located in Bentonville, Arkansas, had been the original Wal-Mart general warehouse before this location was converted to become the company’s main office in the early 80’s (Vance 1994). Wal-Mart has increased its expansion to the other countries, and now, it operates in about fifteen states and has more than 10,000 associates (employees).
In today’s global market, cultural difference is the strength for most businesses or companies. Nowhere in the world, this difference in strength can be more harnessed or integrated than in Bentonville, Arkansas, which is a home to more than 100,000 people from different cultural backgrounds who have their own ethics (Fishman 2006).
Immigration from various places of the world has assured the cultural diversity of the location, changing it in the way it is now (Brunn 2006). If Wal-Mart headquarters were relocated to another place, New York City would be a good location. New York is a cosmopolitan city with a larger population coming from different parts of the world as compared to Bentonville, Arkansas. This means that people can act as a power for running and turning around a retail chain or a market share (Brunn 2006).
Brunn, S. (2006). Wal-Mart world: the world’s biggest corporation in the global economy. New York: Routledge Publisher.
Fishman, C. (2006). The Wal-Mart Effect: How the World’s Most Powerful Company Really Works– and how It’s Transforming the American Economy. New York: Penguin Press.
Vance, S. (1994). Wal-Mart: a history of Sam Walton’s retail phenomenon. New York: Twayne Publishers.