Abstract

Wal-Mart is the largest retail chain in the world. It is also the world's largest company with a turnover of $245 billion. Each year, roughly 80% of American households make at least one purchase at Wal-Mart. Starting off in a small way, under the leadership of the legendary Sam Walton, Wal-Mart has emerged as a global player with operations in North America, Asia, Europe and South America. According to rough estimates, Wal-Mart has saved an estimated $20 billion of costs for US customers in 2002 alone. The 'Wal-Mart effect' has reduced inflation and improved productivity in the US economy year after year. Analysts feel that the combination of discipline, values and learning has contributed to Wal- Mart's success. This case can be used to discuss strategic management issues in a large company, with a special focus on cost leadership.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 0

Keywords

Wal-Mart, Largest company, Retail chain, Wal-Mart effect, Cost leadership, Cost cutting, The Pentagon, Sam Walton, Hypermart, The United Food and Commercial Workers (UFCW), Stores, Super centres, Vendor management, Retail in detail, Logistics