Research conducted in the United States shows that 90% of people living in the country live near at least one Walmart store. In other words, there are so many Walmart stores in America that people can find a Walmart shopping center anytime, anywhere, within a short period of time. This fact shows how popular Walmart is in the United States. Now let's go back in time and see how the Walmart company was founded for the first time.
and the secrets of its success. Walmart was founded in 1962 by the famous businessman Sam Walton in the state of Arkansas in the USA. What inspired Sam Walton to take such an important step in his own business was the income from his small store that he opened back in the 1950s.
Thus, from the end of the 1960s, the name Walmart gradually became known more and more in America. Over time, Walmart expanded its scope and became an international company. To put it more clearly, Walmart branches began to open in different parts of the world, and thus the reputation of the company increased not only in America but also in several other countries.
So what made Walmart different from its competitors? Why do customers choose Walmart over thousands of retailers? The Walmart company has been using a strategy that its competitors often think is impossible in business.
This strategy was the low-price, high-service and quality strategy. From the first day of its operation, the company began to sell its goods at a cheaper price than that of its competitors. At first, competitors thought that this strategy would lead the company to bankruptcy. However, this strategy produced an unexpected result.
So, aside from the rapid increase in the number of customers of Walmart, at the same time, the customers of competing companies also began to decrease. Thus, Walmart became famous all over the world, especially in the United States of America. for its low prices.
It's not by accident that the company's slogan is everyday low prices. So how did Walmart not go bankrupt by keeping prices so low? According to research, when the company was first established, the overall average revenue from sales was low because of the overall price of the product. As a result, Walmart paid its employees lower than competing companies.
However, over time, the popularity of Walmart has increased many times compared to previous years. After that, the company slightly increased the wages of its employees. One feature that makes Walmart different from competing companies is that the cheap product strategy for other companies means discounts on certain products for a temporary period.
For example, the famous company Amazon lowers the prices of various products, such as food, clothes, etc., when using the cheap product strategy. However, in the case of Walmart, this strategy is continuously implemented. Additionally, according to 2018 statistics, Walmart products are 34% cheaper than Amazon products.
When we look at the given examples, we better understand the success of the retail company Walmart. Because in our everyday shopping, when we buy bread on our way home, we compare the prices in different stores in our minds and then come to a final decision. If we consider that this is the case for most customers, We'll better understand the reason for the popularity of the retail company Walmart in the world. Low prices and high quality. On the other hand, as mentioned by Sam Walton, another reason for the success of the company is the support given to it by its partners in different parts of the world.
Walton also mentions in his interviews that the low-price strategy would not be so effective if there was no cooperation with other companies. These words of Walton indicate how important cooperation and partnerships are in business. According to 2021 statistics, Walmart's annual revenue was $559 billion. 2.2 million people from different parts of the world work in Walmart companies and shopping centers.
Currently, more than 10,500 shopping centers of the Walmart retail company are operating internationally. Currently, the Walmart brand has branches in 24 countries of the world, and this number continues to grow. Thus, the retail company Walmart successfully tested a strategy of selling at a low price that competitors thought would never succeed.
And this step taken by Walmart once again proves that risk in business can be useful as well as dangerous. Finally, let's compare the two images you see on the screen. The first picture is the first store that Sam Walton opened back in the 1950s.
The second picture is just one of the Walton Walmart shopping centers, which has thousands of branches. As a result, The Walmart retail company is a prime example of how a business can grow as a result of risk and the right marketing strategy. But what companies do you know that have successfully developed as a result of the right business strategy?
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