The History of Walmart Essays
Wal-Mart customers say low prices as the number one reason for shopping there, reflecting the “Low prices, always” advertising motto that Wal-Mart used from 1962 until 2006. The average US Wal-Mart customer’s income is below the national average, and analysts recently estimated that more than one-fifth of them lack a bank account. A Wal-Mart money report in 2006 also indicated that Wal-Mart customers are sensitive to higher utility costs and gas prices. In 2006, Wal-Mart expands its US consumer base, by introducing a change in its US stores from a “one-size-fits-all” selling strategy to one designed to “reflect each of six demographic groups African-Americans, Hispanics, suburbanites and rural residents.” Six months later, its new slogan read: “Saving people money so they can live better lives”. This reflects the three groups into which Wal-Mart groups its 200 million consumers: “People with low incomes love name brands, richer shoppers who love good deals, and people who like low prices.” They’ve also making steps to attract more liberal consumers.
Wal-Mart evolved from Sam Walton’s purpose for great price and great consumer service. “Mr. Sam,” as he was known, believed in management through service. The principle that true leadership depends on willing service was the standard on which Wal-Mart was built, and drove the choices the business has made for the past 50 years. So much of Wal-Mart’s past is attached to the story of Sam Walton himself, and so much of our future will be deep-rooted in Mr. Sam’s principles. Sam’s rivals thought his plan for a thriving business couldn’t be built around low prices and great service. As it happened, the company’s achievement went beyond even Sam’s hopes. The company went public in 1970, and the profits funded a steady growth of the business. Sam recognized the rapid increase of Wal-Mart not just to the low prices that fascinated consumers, but also to his staff of workers. He depended on them to give customers the great buying experience that would keep them coming back. Sam shared his dream for the corporation with employees in a way that was almost unheard of in the manufacturing.