Effective and Efficient Control Systems of Wal-Mart

Wal - Mart 's effective and efficient control system Wal - Mart' s first operational year is 1962. At the moment, Sam Walton stores in Arkansas and Kansas faces competition with regional discount chains such as K-Mart and Target. Sam visited the country to study this radical new retail concept and was convinced that it is the future. Today, Sam Walton is a global company with more than 8 million people worldwide and developing about 6,500 stores and wholesale clubs in 14 countries.

In order to effectively use the cost leadership strategy, Wal-Mart has started e-commerce service. It is transforming its structure from real stores to efficient and cost-effective online retailing. Wal-Mart acquired Internet retailer Kosmix and established an online business (Wal-Mart Inc, 2011). Wal-Mart has acquired an international business based on online retail. Online presence does not require a large footprint, but it is essential for expansion. In contrast to Wal-Mart, Tesco plc thinks that product differentiation is not a price lead but a marketing strategy. It has developed a wide product category to provide more choice to customers. Tesco specializes in foods other than foodstuffs. As part of the customer loyalty program, we established a club membership card promotion program in more than 11 countries (Market Line, 2011).

Our identification strategy is driven by a system model where Wal-Mart stores are open. Wal-Mart founder Sam Walton opened its first Wal-Mart store in Rogers, Arkansas in Benton County in 1962. Five years later, Wal-Mart has 18 stores, with annual sales of 9 million dollars. Wal-Mart initially grew into a local chain in the northwestern part of Arkansas. It then spreads to neighboring states like Oklahoma, Missouri and Louisiana. From there, after the market was basically saturated, it continued to expand to other parts of the country (Slater, 2003, pp. 28-29). The relationship between the opening date of the Wal-Mart store and the distance from the headquarters is mainly the result of Wal-Mart's "saturation" growth strategy, which is based on store management, distribution and word of mouth advertisement. In his autobiography, Sam Walton states the motivation for control and distribution as follows.