How did WalMart Become So successful?
Hate them, or love them you can’t deny how successful WalMart is. This topic does interest me quite a bit and I have wondered myself how this company has created so many stores and keeps such lower prices compared to any of their competitors.
How does Walmart offer lower prices is a good question to start out at, and the answer to this is that, they have an extremely large buying power. Because of this they have the power to buy a very, very large amount of an item and get it at a very low price per unit. This is why you seen that new blender you’ve wanted on “Roll Back”. And because of this whether you like Walmart or not you almost have no other option of getting an item at a similar or lower price at any or most other competitors. May I also state that they also have their own supply chains.
A second thing that makes Walmart such a strong company is their powerful logistics and distribution networks. Having a strong distribution & logistic network is a very important thing for any business, and Walmart does a very good job with theirs. And because of this when an item runs out of stock at a Walmart location more stock can be brought to that location very quickly and efficiently saving Walmart time and money.
Walmart also provides great customer service. Interactions with customers if they end up positive they are more likely to come back, so Walmart employees are trained to be polite and helpful to all customers. With all of these things Walmart has succeeded greatly in and out of tough times since the early 1960′s.
But what keeps them opening more stores, when most companies are going out of business. Well, this is because Walmart effectively cuts costs at distribution centers, Offices, fleets, and other operations. Walmart managers are also not shy to lower their own hours to save money. Walmart thinks every penny and dollar matters in their business, and because of this they are a very successful company.