Walmart is perhaps the most popular retail store chain all over the world. Ever since they have entered the market, they have become a huge political as well as economical power in a lot of regions of the world. But how did this happen? The answer to that will be a carefully planned business model and its strict implication in all the stores working under their banners.
The following are some elements of their business model that has made them successful-
- Minimizing the costs of products as well as business operations
Walmart has always provided their customers with cheap goods and that is due to the fact that their owners have always controlled expenses related to business. Their owner used to share hotels with co-workers during business meetings and used to drive a normal pick-up truck even though Walmart was successful and he had acquired a lot of wealth. He continued this philosophy in business and tried to minimize operation cost by building their warehouses and investing on other business plan and Walmart cutting prices to ensure better expenditure from customers. Walmart always kept their prices lower than their competitors. This helped them gain trust and the best thing is, unlike most of the company, they maintained their cheap price tag even after they succeeded.
- Strategic store layout and location
One of the best things that Walmart did was to strategically build their chain and now, nearly every American lives within 15miles of atleast 1 Walmart. They developed their infrastructure in a way that the stores can cover as much area as they can in minimum cost. Apart from that, the stores were properly organized with a uniform strategy in all the stores which is a lot easier and convenient for the customers who can get into any Walmart they see and get what they need without being lost or confused.