STRATEGY 411 Lecture Notes - Lecture 7: Walmart, Electronic Funds Transfer, Electronic Data Interchange
Document Summary
Well known for its heavy investment in information technology. Sam walton- founder, had a 20 year average return on equity of 33% and compound average sales growth of 35% for wal- David glass ceo and don soderquist coo have been running the company since feb. 1988 and took sales from. Main issue they faced was how to sustain the company"s phenomenal performance. Discount stores sold food and general merchandise at lower prices by cutting costs to the bone. Discounters" timing was just right, as consumers had become increasingly better informed since wwii. Sales grew at a compound annual rate of 25% from -9b. Of the top 10 discounters operating in 1962- the year wm opened for business, not one remained in 1993. By 1970, walton expanded his chain to 30 discount stores, with continuous growth, cost of goods sold increased. Alternative was to build their own warehouse so they could buy in volume at attractive prices and store the merchandise.
