Walmart

Wal-Mart was started in 1962 when the discount retail industry was in the growth stages. Sam Walton, founder of Wal-Mart wanted to take advantage of the opportunity and establish a discount retail company. In the beginning the stores were started in the small towns in the south. During that time, it was considered as the least successful; however it has outgrown most of its competition. Sam’s mission was to have an everyday low price discount retail store. Five years into founding Wal-Mart, Sam felt that he needs to expand before his competitors out run him. As a result he opened 19 stores with sales of $9 million dollars. Although Wal-Mart was under financed, it managed to have 30 stores in the 8 years. In order to sell the merchandise at a low rate, Wal-Mart’s purchasing cost must also be at a low rate. However, suppliers and vendors were not willing to supply at the rate Wal-Mart was asking for. As result of this he built a warehouse so that merchandise can be bought at cheaper price and in large volumes. At the same time Wal-Mart needed to expand, but did not have enough capital. Sam decided to go public to raise capital. Over all, while his competitors were under the impression that Wal-Mart’s