Historical Background of Walmart

This document provides information about the historical background of Walmart, including its formation, founders, and impact on business and society. It discusses Walmart's business philosophy, products and services, community involvement, leadership style, and success factors. The document also covers Walmart's marketing strategy, target market, finances, and future direction.

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29th April 2019

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Historical background of the company
Walmart derives its name from its finder Sam Walton. He was a believer in the service
leadership and wanted to serve his customers by all possible means. He led the foundation of
Walmart on the belief that true leadership depends on willing service. For the last 50 years the
company is trying to follow the policy of constant improvement and trying to satisfy the needs
and demands of its customers with the best quality product and also an affordable price.
Formation
The first store of Walmart was started in the year 1962. The first store of Walmart was
opened on 2nd July, 1962 in Rogers, Arkansas. During the initial days the store starts with 24
different stores. The sales volume was about $12.7 million. However, the company keeps on
working very hard and made sure that they are able to provide all the necessary comforts to their
customers.
Place of formation
The first store of Walmart was started at Arkansas in a place called Rogers.
Founders
Sam Walton was the founder of the Walmart Supermarket store. His full name was
Samuel Moore Walton who was a well known American entrepreneur and businessman who led
the establishment of one of the leading supermarket chains. He has led the foundation of
Walmart based on the view of serving the customers to the fullest (Stryker, Susan and James

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Stryker., 1). He made sure that the customers are able to shop the best quality at the minimum or
the affordable price. This will help them stay fit and live longer.
Products and services
Walmart is a one-stop store that allows the customers to get their day to day retail items
at a very affordable price. Everyday Low Price (EDLP) forms the core aspect of their store
(Noda, Toru, 50). The customers can get the retail or the grocery items like fresh fruits,
vegetables, oil spices and many other such products. It is highly convenient for the customers
because they are able to get all the products at one particular store. This helps in saving their
energy, time and money.
Business philosophy
‘’Giving people access to a better life. One community at a time’’ is the business
philosophy that is followed by this organization. In other words they want to make the lives of
people easier by helping them to live and eat healthily. Walmart believes that it is their
responsibility to help people get a better life by creating a positive impact on society.
Impact on Business/Industry/Society
Walmart is taking many initiatives that will have a positive impact on society. They do it
by undertaking many sustainable approaches. Walmart is following the take-make-dispose
approach in order to recycle and reuse the products and raw materials. They use the chemical
free and the natural eco-friendly technologies of production so that the society can get all the
healthy products (Caraway, Brett, 910).

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They are also trying to use solar cells in order to use solar energy and check unnecessary
energy wastage (Steenkamp, Jan, 79). Walmart makes sure that they are able to provide proper
career opportunities to all their employees (Daft, Richard). On the job training is provided so that
the employees do not face any troubles while working in Walmart. In order to boost up their
business they have opened up many distribution centers as well. They have about 150
distribution centers including the clubs, servicing stores and also the direct delivery to customer
stores.
Business innovations
Walmart is undertaking many technological innovations. They have realized the
importance of going digital. Thus they have created a new digitalized platform that will help then
customers to get rid of making a list of any valuable items. This practice of listing often takes a
lot of time. Thus customers can use this digital app (Spicer, Andrew and David, 120). The app
makes the customers use their natural language to type in the broad category of products that
they want to like coffee, popcorn, pickles. The app identifies the item and brings a list of selected
items for the customers making it easier for them to choose (Peeroo et al.). The store maps area
also brought in a very easy and customer friendly manner so that they face no issues.
Community Involvement
Walmart is involved in protecting the environment by taking all the sustainable means in
all levels of their production process. Walmart takes the active initiative by involving themselves
into the community. VAP or the Volunteerism Always Pays. In order to help the community
grow and develop they make monetary contributions voluntarily to the eligible organizations.

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Disaster Relief and Resiliency is another community development activity undertaken by
Walmart that gives considerable grants during any natural calamities or disasters.
Walmart thrives in reducing the negative environmental impacts by using the eco-
friendly measures (Aivazidou, Eirini et al.,1019) They have taken active steps in reducing the
pollution from cotton textiles (Knutson, Bonnie). Walmart I working with the different cotton
suppliers to get 100 percent more pure and sustainable cotton (Lee, Kyung, 20).
Leadership Style
Walmart mainly works on the principle of service leadership. They value their customer
the most and makes sure that they are able to provide a large number of goods at the most
affordable price. They have always followed a particular leadership style that will help them to
develop customer loyalty.
Success Factors
The idea or philosophy of keeping the customers at the very heart of the organization has
helped them to attain success in the long run (Wells et al., 618). They have also kept an active
eye over the growing digitalization or mobile marketing aspects (Allen, Myria, 140). The R&D
department did in-depth research and analysis has also helped them to reach out to their targeted
customers properly.
Organizational size and structure
Walmart has a hierarchical functional organizational structure. Their organization
operates in about 27 countries. They provide employment to 200,000 people each year. Apart

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from they have about 150 distribution centers with transportation that has a fleet of 6,100
tractors, 61,000 trailers and more than 7,800 drivers. 50 states in the U.S., Washington D.C. and
Puerto Rico, with three primary store formats, as well as digital retail
What types of people are employed by the business/corporation?
Walmart hires people irrespective of their social status, economic background, class,
race, religion and other such aspects. Employees are hired by both indigenous and non-
indigenous backgrounds (Burton, Kelly, 39).
Marketing strategy
Walmart follows a unique marketing strategy. It contains four different aspects they are-
 Price
 Access
 Assortments
 Experience
They follow a very marketing strategy where they try to keep their customers first. They do not
believe in maximizing their profit by placing their products at a very high price (Remy et al., 5).
Target market
The lower middle class and the middle classes of customers are the main targeted
customers of Walmart. They want to sell their products to a mass number of customer belong
from not only the high-income group but the middle and the lower middle income as well.

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Finances
The fiscal year 2016, Walmart had revenue of $482.1 billion and in the fiscal year
2017, they made revenue of $485.9 billion. Currently Walmart is enjoying a good financial
position.
Company’s Future Direction
Walmart has declared that they will be empowering the customers and making them the
center of their decisions. This is because in future the customers will become more aware of the
products and can drive then change in the production and price of the products very easily. They
will have to enter into the digitalized platforms in a deeper and stronger way so that they can
make the shopping experience much easier for the customers.
Conclusion
Thus, it can be concluded that Walmart can surely be successful in future provided that
uses all the modern and scientific technologies in order to give its customers memorable
shopping experience. In future they will face stiff competition but they have to offer many
additional services like pres sales, post ale services and other such aspects.

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Reference
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