Phase 1 Discussion Board Part 2
MGM465-1404B-02 Business Strategy
Professor Ryan Tipton
November 19, 2014
Walmart, who would have known that they are the largest retail business in the world blowing their competitors out of the water. Revenue of $442 billion each year compared to $70 billion that Target brought in is truly amazing. With over four thousand four hundred stores across the world Walmart is the largest private employer (Time Inc., 2014). Do you know who or what country employs the most people at their Walmart? U.S. Department of Defense and China’s People’s Liberation Army employ 2.1 million. This size exceeds 15 states and the District of Columbia (Time Inc., 2014).
How does Walmart do it? Sam Walton’s philosophy was to have the lowest prices. So, if you could give everyone the lowest prices on everyday goods then you are going to be successful. By doing this they did away with intermittent sales that are very common in the retail world. I remember when Walmart came to my area in Minnesota, because the smaller retail stores closed their doors. Employees from other smaller retail stores went to work at Walmart which caused them to shut down. What kind of retail stores are affected by this giant of a retail business? Well, you can buy anything from toilet paper, potting soil, food, electronics, house hold cleaning supplies, gaming systems and even Timex watches.
So, lowest pricing, convent store hours and a guarantee on all of their products is the way that Walmart is dominating the market. Another example of low pricing is Walmart’s newest price cut on generic prescription drugs giving you a price of $4 per drug (Linkedin Corporation, 2014). Are they truly giving people what they want or are they getting rid of the competition by underpricing them and forcing them to close their doors? This all depends on who you ask! I feel that they knew how to control the market by giving to the people and...
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