Walmart refers to a multinational retailing company that works through hypermarkets, grocery stores and department stores. The corporation was established in the year 1962 by a person named Sam Walton. Today, Walmart has an approximately 11695 stores. Besides, Walmart has opened several branches in various countries around the globe. In Canada and the US, it operates under the name Walmart while in Mexico it is known as “Walmart de Mexico centroamerica”. In the United Kingdom, it runs under the name Asda. The “Sam’s Club retail warehouses “are owned and operated by Walmart. Moreover, Walmart is recognized as the world’s leading earner in terms of revenue. The firm offers more employment opportunities than any other private company around the world. The company is owned by the Walton family who oversees and controls its operations. Similarly, Walton enjoys a lot of recognition around the globe for being one of the firms that has the highest value. The descendants of Sam Walton own above fifty percent of the business’s share.
To begin with, the company entered the New York Stock Exchange in the year 1972 for the first time. After 16 years the company grew in status to be the leading profit retail shop earner in the United States of America. However, the company has been successful in some countries but its operations have proved fruitless in other nations. For instance, its performance in Germany and China has been poor. On the contrary, its performance in the US has been admirable. In the US, the company is recognized as the leading distributor of retail products. The business is involved in the selling of the following commodities; home furniture, electronics, movies and music among others. The head offices of the firm are located in Bentonville in the United States of America. A branch of Walmart was opened in New York in the year 1990.
The classification scheme that is represented in the way items are arranged in Walmart is the taxonomy type of classification. The arrangement is described by a grouping of commodities that are related. It is important for the grocery stores to apply this kind of arrangement because it has several advantages. One of the benefits of this display is that it helps the customers to identify an individual commodity quickly. Besides, it facilitates the identification of items that are similar. Therefore, this approach is a win- win situation to both the supermarket and the consumers. A quick identification of the products implies that the organization makes fast sales that lead to more profits. The diagrams below indicate how the products are arranged in Walmart retail stores. Right after the entrance into the supermarket, the goods that are in the store are food products that are well arranged so that they can create a tempting atmosphere for individuals to purchase the items.
The shoppers in Walmart behave in a different way towards the various products that they want to purchase. It is mainly determined by the price of the commodity or the quality of the good. In most cases, both the factors are put into an account before one buys an item. The items that are well parked and eye-catching attract more customers than those that are poorly-parked. Similarly, the goods that have a combination of low prices and high quality have a higher demand than those commodities that do not have the aforementioned features. The majority of the purchases in the Walmart retail stores are unplanned. It happens in situations whereby a customer falls in love with a good in the first sight and this has a compelling effect that acts as a catalyst in forcing the customer to buy the product. The shoppers use trolleys that are used for the carrying of the commodities. The trolleys are efficient because they are easy to use and they require simple pushing in for them to transport the goods. The commodities are arranged in shelves and people can move the trolleys from one shelf to another as they select the items of their choices. After the choosing of the goods, the clients take them to the counters where there is a group of cashiers waiting to receive the payments.
The shoppers apply the knowledge of Walmart retail store to their benefits. It is accomplished through the understanding of the map of the supermarket which enables them to have the information of which commodity is parked in which area. The mastery of this knowledge is important because it enables the shopper to organize his shopping in a manner that he can purchase what he intends to buy in the supermarket using the shortest possible time. Besides, it is also imperative because it enables the shopper to navigate in an organized way. For instance, after picking of the foodstuffs in one store, the shopper knows which route to follow so that he can access other commodities such as the electronics.
I have also observed that Walmart has opened a bakery in its supermarkets. The objective of having bakeries in the supermarkets is to ensure that the company has fresh foodstuffs that act as a catalyst for attracting more customers to enter the supermarket and engage in the purchases of , “unplanned purchases” which increase the number of the sales by the supermarket. This approach is important to Walmart because it is the channel through which the retail store raises its revenue. Similarly, the supermarkets have employed the application of modern technology. It has been applied in the use of computers for the making of payments for the products purchased by all the customers. Equally, clients can place their orders through an online platform. It is specifically for the foodstuffs such as groceries. After the placement of the orders, the consumers are given a date to go and pick the products. It is important for the corporation to utilize this strategy because it favors their clients through ensuring that they do not go and queue in lines that which so hectic and time consuming.
Equally, another observation that I have made in Walmart Supermarkets is that the company has a well-planned procedure of avoiding imitation from its rivals. It has accomplished this mission through an application of lower costs that makes customers to prefer to buy goods from the Walmart retail stores. To that end, the supermarket has been in a position to capture the lion share of the market. The competitors are not in a position to copy the way Massmart carries out its operations because it is costly. For instance, in a situation whereby a competitor imitates the manner in which Walmart supermarket carries out its operations, if follows that it will have to sell its commodities at a lower cost than the management had planned. Such a scenario may make the organization to be operating under smaller margins of profits which may translate to massive problems to the firm. For example, such a practice is detrimental to the imitating company because it may be put in a position whereby it cannot meet some of its expenses. To that end, the firm maybe closed down because of bankruptcy issues.
Similarly, I have figured out that Walmart has a core competence in its physical location. It has opened its stores in some areas where there are no other businesses that are engaged in the selling of foodstuffs. To that end, the company enjoys monopoly powers in that particular town or city. It is costly for the rivals to imitate this situation because high initial costs may be required to start several groceries in various places.