Wal- Mart is recognized as the biggest retailer in the United States Wal-Mart is one of the biggest multinational companies in the whole world. The reason for its popularity is because of its cost structure, its stability through hard economic states and its response to market instability. Walmart after years of hard work have established itself as a giant retailer (Walmart, 2015). The major factors that have helped the company rise are the structures that the retail store operates on, in this paper three distinct organizational dimensions will be analyzed namely, the generic business strategy, organizational culture and the formal organizational culture.
Retail industry
It is evident that the retail industry is like a red ocean- there are too many players in the market leading to a sales slowdown. Also economic crisis in the United states caused many consumers to reduce their spending (Walmart, 2015). Many retailers have been forced to close some of their stores as a result of the declining customer levels, the stores that have not closed have been forced to reduce the price of their commodities. Despite the challenges that many of the retailers might be facing in the U.S, not all the retailers are in crisis, Wal-mart is able to maintain high
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H., 2010). Low pricing strategy has enabled the company to get more and more customers, this has resulted in volume sales. When the company was started the main focus was placed on the small towns in the U.S, the towns had low populations and for this purpose the major competitors did not see any need to concentrate on them (Kreitner & Kinicki, 2012). Sam Walton concentrated on these small towns with his Mantra of everyday low prices. This mantra has assisted many consumers to get their products in the branded and the unbranded categories. Most of the products at Wal-Mart have are 15-20% percent lower than in the other stores (Nuemark, Zhang, & Ciccarella,