Walmart is known for its ability to continuously reduce its costs, creating value for their customers. Walmart’s ability to stay on top makes competitors like Target hesitate to compete against them strictly on the basis of costs and prices that will affect customers buying habits. Walmart has used the cost leadership strategy since they opened their business. It all started with a simple philosophy from Walmart founder, Sam Walton who believed the key was to offer shoppers lower prices than any of his competitors. That basic strategy has shaped Walmart’s culture and has driven the company’s growth. Some wonder how Walmart has been able to keep its prices so low; it’s simple, by cutting-edge technology, a frugal corporate culture and pushing suppliers to lower their prices. Mr. Walton’s vision was to keep prices low even if he had to endure a lower profit margin than many of his competitors. His vision of having a frugal corporate culture still exists even after his death, more than 10 years ago.
Walmart (formerly Wal-Mart changed its name in 2008), is governed by a Board of Directors made up of 15 members, elected annually by shareholders: Robson Walton (eldest son of Sam Walton), serves as Chairman of the Board and Michael Duke is the CEO of Walmart. Walmart’s operations are organized into four main divisions: Walmart Stores U.S., Sam’s Club, Walmart international and Walmart.com.
Walmart uses an intensive strategy is in place for human resource management and growth. People are essential to Walmart’s business and they invest plenty of time and money into training their employees. All new Walmart associates go through an in-depth orientation that lets them know what it means to be part of the Walmart family. Training and development is not a one-time occurrence when you start, like most companies instead, it’s an ongoing part of an associate’s life working for the company. Walmart did away with the Lay-a-Way program claiming people weren’t...