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Walmart Case Study

659 words - 3 pages

Joyce Layne
Wal-Mart a Case Study
Managerial Accounting
February 4, 2015

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History
Walmart was originally founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962. His original vision was to bring everyday low prices to more rural areas by building large discount stores in small towns. While other competitors focused on populations greater than 500,000 this gave Walmart a chance to grow in smaller markets without much competition.
Walton also introduced a process using what he called “Best Yesterday” ledgers which takes ledgers for a specific date and compares the information with the same date from the previous ...view middle of the document...

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Strategy and Competitive Advantage
Sam Walton’s original strategy to bring everyday low prices has been revamped not only to serve rural areas but to spread the business throughout the United States and beyond. Linking up with suppliers and being sure not to become solely dependent upon any particular process or supplier Wal-Mart has been able to become a staple in any city in the US were you can visit and receive the same commitment and quality as you would at home in your own town.
The competitive advantage that has supported Wal-Mart are the uplinks that they have with their supplier which has not only allowed them to keep their stores adequately stocked but also has helped to drastically reduce the cost of storing additional inventory. Linking with suppliers and having their own private trucking company Wal-Mart is able to keep their cost of shipping product from one place to another at a rate that is half the cost of its competitors in turn keeping prices “low”.
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