Wal-Mart Essay

3262 WordsJun 2, 201314 Pages
Introduction On July 2nd, 1962, Sam Walton opened the first Wal-Mart store located at 719 Walnut Ave. in Rogers, Arkansas. On October 31st, 1969, the company incorporated as Wal-Mart Stores, Inc. One year after the incorporation, the first distribution center and home office was opened in Bentonville, Arkansas and the company went public on the New York Stock Exchange. Currently Wal-Mart Stores, Inc. is the largest retailer in the world, the world’s second-largest company, after ExxonMobil, and the largest nongovernmental employer in the United States. The key to their success is their "Every Day Low Price" philosophy because they masters at controlling expenses. In 1991, the first international Wal-Mart store was opened in Mexico City. Now Wal-Mart operates internationally in Canada, Mexico, Argentina, Brazil, United Kingdom, and Puerto Rico including joint ventures in China. The goal of this analysis is to examine Wal-Mart Stores, Inc. and its mission to dominate the international market. Wal-Mart has proven to bea success throughout the United States; however, internationally they seem to have several challenges that need to be addressed if Wal-Mart wants to be competitive. Why Going Global? Wal-Mart decided to go globally and expand internationally to attain its growth objectives. Like any business, Wal-Mart wants to assure its long term profitability and increased sales to increase market share. Going internationally can diverse Wal-Mart market, being independent of the domestic market can reduce the risk against sudden changes in the economy and poor market conditions. Having other market shares to grasp can avoid such risks especially in times of recession where consumers choose to cut spending. Another reason is catch up with competition, other competitors might operate in same area Wal-Mart operates on and penetrate through the business,

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