Wal-Mart: The Secrets of Success

Wal-Mart Stores, Inc. has experienced an amazing journey since its incorporation in 1970. The company presently enjoys a top Fortune 50 position, constantly growing sales and net incomes, and numerous other non-financial successes. The original Wal-Mart Discount Store has been complemented with Wal-Mart Supercenters, Sam's Club Discount Centers, and international Wal-Mart Stores. Wal-Mart is the country's largest private employer and has database capabilities second only to the United States government A scare in 1996 resulted in the first drop in net income growth since the incorporation of the hometown company. Since then, sales have grow in double-digit percentages with sales in 1997 exceeding $105 billion, well above founder Sam Walton 's predictions for the company. Wal-Mart accounts for 17% of US. general merchandise, apparel, and furniture sales and commands nearly 40% of the entire US. market in retail sales for branded goods. Meanwhile, Wal-Mart's competition has been left out in the cold. Sears, the closest competitor, completed 1997 with sales less than one third of Wal-Mart's sales for the year. K-Mart's future has been in turmoil over the past few years with management changes and store closings across the US (Hoover's). Wal-Mart is the tlrst retailer to successfully enter international markets. The company is also the pioneer for inventory and information technologies. Wal-Mart has successfully marketed itself through its corporate culture, dedication to the community, and commitment to the environment Financial analyses of the company reveal that Wal-Mart exceeds its competitors in many areas. The company has also exceeded industry standards and been able to lead changes in retailing standards. The secrets of Wal-Mart's success lie in the management of the company and the foresight management has had about the needs of its stakeholders, including employees, the industry, customers, and the environment