Dominating the Retail Market :
A key strategy of Wal-Mart is to dominate the retail market. Company founder Sam Walton put in place a retail philosophy the company still follows. Wal-Mart is primarily a discount retailer because they sell their products at the lowest possible prices. By selling at the "lowest price." Walton outlines that the essence of successful discount retailing to cut the price on an item as much as possible, lowering the markup, and earn profit on the increased volume of sales.
Another subset of this strategy is the competitiveness of every unit. Each store is encouraged to ferociously compete against all other stores in its customer base until the Wal-Mart store gains dominance over its local competitors .Wal-Mart is currently ranked as the world's number one retailer and the number one company in the world in terms of sales (over $200 billion) on the Fortune 500 list. The key strategy is to dominate a market. Using its size and volume buying power, the company effectively implements its strategy.
The way Wal-Mart developed:
Wal-Mart capitalized on its rural locations to establish important competitive advantages during its infancy. Many rural markets were characterized by populations that were scratching a subsistence level of living with very few employment alternatives. But from 2003 Wal-Mart started its operation in the major cities. The rural network was still intact and the company had stores in all 50 states in the United States. All stores were quite uniform, both in their external and internal appearance. A substantial part of the real estate was leased and custom-built by the property owners. Given the fact that many of the smaller communities had been blanketed with stores, the company started driving into suburbs. It was, however, not met with quite the same enthusiasm that it received in the rural settings. Local community activists in various parts of the country were banding together to use zoning laws to keep...