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Wal-Mart in China

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Wal-Mart in China

Executive Summary

Wal-Mart Stores Inc. is the largest retail company in the United States and is larger than any other retail chain in the world. Wal-Mart is more than just the world's largest retailer. It all started with a simple philosophy from founder Sam Walton: Offer shoppers lower prices than they get anywhere else. That basic philosophy has shaped Wal-Mart's culture and driven the company's growth in the United States. This culture is most prevalent at the company's headquarters in Bentonville, Arkansas. Wal-Mart has had phenomenal success in the US due to a few key factors. First, a model based on cost control was centered around offering the lowest prices in the market, with an emphasis on beating any competitors’ price by an average of around 20%. Second, it targeted a niche by focusing on the customers that everyone else seemed to neglect, the small town shoppers. Wal-Mart started by concentrating on opening stores in small towns and introduced innovative concepts such as self-service. Their strong customer demand in small towns led to the rapid growth of Wal-Mart. The main reason for Wal-Mart's success in smaller towns was that it offered low prices and catered to the specific needs of the targeted consumer. The strategy was especially successful as it achieved instant market saturation leading to very strong loyalty. This strategy also helped Wal-Mart stay below the leading competitor’s radar while building up their competitive advantages (distribution centers, etc.) that allowed them to grow larger into the mainstream. Third, Wal-Mart’s supplier partnership allowed it to be able to build a win-win partnership with their suppliers while still acting as a very strong negotiator. Insisting on lower prices, Wal-Mart was also working with suppliers to help them achieve those prices by providing them with support and

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