WALL MART : BIGGEST DISCOUNT RETAILERS OF THE WORLD

Wall mart is the biggest discount retailers of the world after amazon . It is founded by SAM WALTON (co-founder of wall mart store chains).

First wall mart discount retailer stores started in the year 1962 Roger, Arksans in united states (US).

Today we going to tell you about the business model of wall mart and how you will apply these given levers to your retail business so that in upcoming years you will scale up your business to next level.

These are the reports and analysis based on complete research from various sources which is 100% applicable (sources: Harvard business school).

ORIGIN OF WALL MART:

Wall mart originate by a small fight between Sam Walton and his brother Bud Walton .Sam wanted that the discount retail stores are firstly opened in rural or sub-urban areas, but Bud Walton shows there disagreeableness.

so from there Sam Walton decided to open there first retail store in rogers, arkasans.

basically the idea of SAM was that he wanted to scale up there business from lower level to upper level.

so for implementation of his idea he started there business in sub-urban areas.

PILLARS OF BUSINESS MODEL OF WALL MART:

Before stated the levers/pillars of business model on which whole business model formed , you have to made commitment with yourself that you will definitely apply these levers in your retail business .

so, here your levers of Wall Mart:

PRICING: Wall mart under the leadership of Sam Walton adopted the EDLP (every day low prices) ,this scheme will help wall mart to boost there sales in the market, and wall mart also created there image of getting product in low prices.This enables to fetch the biggest share in discount retail business.Now, the question arises how you will adopt this strategy in your business? so the answer is simple if you want to capture big share in the market then you have to show less price then original price of a product , this will not only increase your market share in long run but also provide recurring customers to visit regularly to your store.
PRESSURE ON VENDORS : We all know that wall mart shows hard bargaining process to there vendors which will help them to minimize there cost and increase there efficiency and by this way major vendors (whole sale items sellers) sell there whole-sum products to wall mart discount retailers stores at cheaper rate. And later on wall mart increases the price of these individual products as per there profit margin. So, if you already apply this technique to your business then you are on the right direction.
INVESTMENT IN TECHNOLOGY : This is the very important levers of wall mart success which you will definitely apply in your business .In recent times there are high level advancement in technology which changes the way of doing business .In 1962 when wall mart first retail store established they give more emphasizes to technology improvement, and over the time they improve the way of doing business by set up first wall mart satellite system which cost them 20 $ million, in 1983. Now, in today’s changing world you will analyse your business model that you made changes in technology or you are using old technology.
HUMAN RESOURCES PRACTICES : Wall Mart always taken care of there employees ,one famous quote of SAM WALTON “If you want the people in the stores to take care of the customers,you have to make sure you’re taking care of the people in the stores”.This famous quote completed the picture of any organisations, that what’s the reason behind there success story.So you have to taken care of your employees or workers in the business and provide some incentives to them so they are well motivated towards there work .
EXPANSION POLICIES : This is the key pillar after well set up the business , then what next? so the next thing which you have to keep in your mind that you have to expand your business in various locations which will give you more chances of generating revenue.You will use many promotional tools or you will distribute as a franchise to people who are interested in your business this will give you royalty or profit share from each franchise revenue generated every year.So this levers you have to follow in your business.
PRODUCT SELECTION : Wall mart always gives more emphasizes to there selection of product in there store , they kept both private brand product or local brand product ,this was happened because they want that each and every customers who visit there store should buy something from there store as per there financial status. Now, many retailers kept always high branded product which will effect the sales of there business because lower middle class customer didn’t buy the product from there retailer shops , so you will kept both type of products for just sake of customers satisfaction.
COST CONSCIOUSNESS : This is one of the pillar of Wall Mart success they always kept the price of there product low for which they will uses various techniques some of the time there managers including Sam Walton spend there night in hotel rooms ,they didn’t take taxies and prefer to walk ,only for cost reduction of product. So ,this is very important factor you have to follow that, in what ways you will minimizes your cost so that you will achieve your desired sales every quarter.
CUSTOMER SERVICES : Wall mart always taken care of there customers in there store so that there customers will retain in the business.They are treating there customers as a part of there family ,wall mart sought to project an image “as the competitive one stop shopping center for the entire family where customer satisfaction is always guaranteed” .It also provide customers various coupons which will help them to purchase more products at lesser price,it also uses various promotional tools,they charge very less fees for parking ,and there are hassle free parking so that customer satisfaction remain always high.

above given business model remain same in the journey of wall mart from 1962 – in recent (2020) and in upcoming years also remain same, however they also made changes in there business time to time but the core business model of wall mart remain same.

Now ,these are the highly precise details of wall mart biggest discount retail after amazon .

Now,it depends on you how will you going to apply these things in your business and scale up your business to the next level.

CONCLUSIONS:

THESE CORE ELEMENTS OF WALL MART BUSINESS MODEL WILL DEFINITELY GOING TO HELP IN YOUR BUSINESS.
AFTER READING THE BLOG YOU EASILY UNDERSTAND THAT HOW BUSINESS MODEL OR LEVERS CREATED IN THE BIG ORGANIZATIONS.

WILL YOU BE APPLY ANY LEVER IN YOUR BUSINESS? REPLY IN COMMENT SECTION.