Walmart's Intended Strategy Essay

Strategic Evolution

Intended Strategies Since the inception of the company, Wal-Mart’s primary intended strategy has always been to be the lowest-cost provider. Sam Walton saw to this before he had ever opened his own discount store, “He decided that small-town populations would welcome, and make profitable, large discount shopping stores” (“Wal-Mart Stores, Inc. (2); International Directory…” para 4). Walton knew not only would his stores be welcome, but also that he would be “able to keep prices low and still turn a profit through sales volume” (“Wal-Mart Stores, Inc. (2); International Directory…” para 5). The low prices Walton offered were able to be transferred directly to his consumers on the basis that the goods Walton sold were purchased

This strategy involved Wal-Mart building its own warehouses where merchandise could be stored after it had been purchased in large or bulk quantities. The company then opted to build stores around these distribution points which lead lower costs as the company had more control over operations because the merchandise and goods could be restocked just as quickly as it had sold. This also allowed for advertising costs to be cut as marketing was now specific for smaller regions which meant it cost less to produce and distribute (“Wal-Mart Stores, Inc. (2); International Directory…” para 7). As costs were cut, savings were then able to be passed on to

This was a brand focused primarily in the beverage industry. Wal-Mart’s branding of their own products was a strategy that they had not pursued previously however, the brand matched the quality of other national brands in the beverage industry but these products were offered at lower prices which coincided with their intended strategy of being the lowest-cost provider (“Wal-Mart Stores, Inc. (2); International Directory…” para 21). Sam’s American Choice was later joined by the addition of the Great Value brand in 1993 (“Wal-Mart Stores, Inc. (2); International Directory…” para 26). The Great Value brand was originally intended for packaged food items however this brand has grown to encompass a wide variety of products to ensure that Wal-Mart remains the lowest-cost