Top 5 Case Study of Walmart - Business Insane

Case Study of Walmart

     You must be aware that today’s era that is richest men is Jeff Bezos and earlier it was Bill Gates. But do you know who was the Richest man before Bill Gates that too for many years?

Case Study of Walmart
Case Study of Walmart

     Well from 1982 onwards the man who was at the position of World’s Richest Man was Sam Walton. When Sam Walton died in 1992 only after that Bill Gates became the world’s richest man. Sam Walton was so rich and successful because he formed a Company Walmart who brought Revolution in Retail Industry.
Even today, Walmart is the biggest Revenue Generating The company, it’s in the number one position. In 2017, Walmart generated $486 billion revenue whereas Apple generated $255 billion in revenue. In today’s time, Walmart has 11277 stores and clubs worldwide. Walmart has more than 2.3 million workers, employees more than any private company. In fact, the Canada population is less than the people who visit Walmart just one day. Jeff Bezos also follow Sam Walton and his book Made in America.

Also Read: Daily Habits of Every Successful Entrepreneur. 

     In 1985, when Forbes listed Sam Walton as World’s Richest man at that time all media people were stressed about who is Sam Walton, never heard about him, never seen him, etc. All were in thinking who is Sam Walton? How exactly he is? With the hope to know Sam Walton, all media people went to Bentonville where Walton used to reside, they were assuming that Walton will be relaxing in the money pool, who will be smoking $100 as a cigar, the girl will be around him. But their assumption broke, when they came to know instead of driving a Sports Car. 

     SamWalton used to drive an Old Truck which has Cages for his dogs, they came to know instead of doing his haircut from a fancy salon, he prefers to go to the small roadside salon, instead of wearing designer clothes, he used to wear his own store simple clothes and a ball cap. He was a person who prefers living a simple life, this doesn’t mean that he was miser, no obviously not but the actual reason was that he always understands the Value of Money.

      In his lifetime, he bought 18 planes all were second hand, he didn't buy those planes for showoff, he bought the planes to save his time. Sam who belongs to a very normal life, his parents were very hard-working people. They all respected money, when Sam Walton was growing old at that time a huge recession was going on and there were huge money problems that were going on. Hence, Sam Walton's parents used to use money with proper calculation and the same thing Sam learned from his Parents.

     Today, child work is considered as a Sin. But Sam Walton since childhood was a contributor to his family, not a taker, which means he since childhood learned to earn money. Since childhood, he used to sell Rabbits, Pigeon or Magazines or Newspaper by going door-to-door. Since childhood, he worked hard and earned money. Therefore, he learned to value money a lot. If Sam would have wanted then he would have easily lived a very lavishing life by buying yacht or islands, but no, he chooses a very simple life because he uses to believe that if I spend a lot then directly it will be like I am spending money from the customer pocket.

     See the maximum company fail to become huge because of those companies owners after getting small success start taking and spending a lot of money from the company's profit, because of which their life grows but the company's growth stops because of lack/less of money.  

     However, Sam Walton used to invest his maximum income again in his business and companies. He used to re-invest his money by opening new shops and stores, therefore be able to create a huge empire. Hence, the very first lesson we must learn from Sam Walton.

Here is the Top 5 Case Study of Walmart:

1] Value of Making Money

     Many people say that they don’t have money to start a business well even Sam didn’t have, but if you learn to work hard and to earn money and to learn value your money. Then slowly and gradually even you will do something great and huge like Sam Walton.

     Since childhood, Sam Walton’s mother taught him one thing, that “Son Be Best At Whatever You Do Always Set High Goals For Yourself And Always Be Ambitious.” Therefore, since childhood, Sam always work to become the best,

     Example: As I said earlier Sam used to sell Magazines and Subscription to earn money, that time a competition happened where they were asked who will sell maximum subscription in one day and the price of the competition was $10. Now, obviously, you can understand who won that competition obviously Sam Walton. Many parents stop their kids from playing and ask them to study all the time, let me tell them Sam Walton used to play baseball, basketball and used to swim in summer season and he was good in all these games and sports.

     An amazing fact, whichever game Sam played during his childhood, he won all those matches and whether say it luck or anything, whichever match Sam’s team used to lose. In those matches, Sam fails to appear or wasn’t present in those matches for some reason like he was ill or was injured, etc. No matter whats the reason, but this thing made Sam believe that Winning is his right, he can never lose and this belief made him grow in his life.

Related: Value Creation & How to Deliver Value to Customer 

     At the age of 12, he challenged one boy that he will be the first boy to win in boy scout eagle match and guess what just at the of 13 he became the youngest eagle of his time. Now, don’t take it wrong, he wasn’t a talented kid or god has gifted him talent or luck or anything. But the actual reason was he was very hardworking he used to work hard to always stay at the top. He always believed in action, therefore in whatever he used to participate, he used to emerge as a winner.

      Example: Sam Walton’s team was State level champion in football and basketball. He was president of many clubs and organizations in his childhood.

     Charlie Baum early Walmart Partner says, in many ways money wasn’t that important for Sam, but the thing which was the reason for his motivation was to stay at the top always.

     Now the second lesson which we must learn about is Competitive and Best.

2] Competitive and Best

     Whenever you do, be best in that by being competitive this attitude will move you forward in life just like Sam Walton.
Sam Walton was a very influencing and motivating person, people used to admire him and like him because of his humble nature. Now, as he always wants to stay at the top, once when there was a competition going on his university for president, therefore Sam Walton participated in it.

Case Study of Walmart
Case Study of Walmart

     In that competition he learned a simple but great secret or lesson of Great Leadership Skill secret was, whoever used to come to meet him or used to walk near him, Sam used to be the first person to Approach, he used to talk first before that opposite person. If Sam knows the opposite person, then he used to talk to them by saying their names and even if he didn’t know the person still he used to talk to them, even if people are just passing around him. Now with this habit what happened people start recognizing him and consider him as a friend and as a result, he won the President Election.

     There was an article where it was written that Sam was one of the rare people who used to call and was aware of his company‘s employee names, he knew from Janitor till CEO by their names and this same nature was very beneficial for his shop. It played a great role in bringing customers to the shop because he used to Greet People with respect, he used to greet people walking outside his shop. He used to remember people’s names used to make feel important and special always.

     In short, he was very great with people’s skill and because of playing many games he understood the importance & power of teamwork from a young age. He used all this knowledge and learning for Walmart Success.

Also Read: The Intelligent Investor Book - Quick Summary and It's Core Fundamentals

3] Improve your People Skill and Learn Team Work

     How to win friend and influence people is an amazing book which will for sure improve your people’s skills.

     With a competitive and confident nature and paying his education fees by himself, he somehow completed his studies and then he did his first job in JCPenny Store which was a retail shop. Sam's handwriting was very bad and was hardly understandable, managers used to face issues. But still no one was removing Sam from that job, Why? Because Sam was a great salesman and used to do a lot of selling and profit for the company.

     As he always wanted to be at the top, therefore, he too $k from his father in law and started his own shop which was basically Ben Franklin Shop’s Franchise at New Port. Sam bought that shop in Excitement but later he came to know that his shop rent is more compare to other shops that are 5% of total sale income and people who gave that shop in rent to him were basically fooling Sam.

     Now instead of focusing on how he got fooled, how bad people are, how he got tricked, He decided and aimed to make that loss going Store to be the most profitable store in New Port.

     Example: Before Sam took that shop of rent, that shop used to do the selling of $72k per year and the shop opposite Sam Walton’s shop used to do selling of $150k per year. Now to be at the top, he started doing a lot of research that how he can move above his competition.

     He read all retail publication books, he attended Ben Franklin Program, which was teaching how to handle stores and most importantly, he used to focus what all things going inside his competitor's shop, like what exactly the competitor is doing and by learning through all those things, he used to apply in his store and he used to do another experiment also which wasn’t done by others.

     Example: He opened the Ice-cream and Popcorn machine in front of his store, which became the reason for him getting more profit and attention of the people and this way that store slowly and gradually started getting successful.

4] Learn Experiment and Focus to Win

     Instead of focusing on negative, focus on positive by focusing on learning & by doing experiments. Now, by doing many experiments and by breaking many rules he started running his store.

     Example: There was a Rule of  Taking Ben Franklin franchise is that Sam has to buy 80% of stuff/products from Ben Franklin directly, but Sam used to buy only 70% or less than that from Ben Franklin and remaining stuff he used to buy from outside so that he can sell in less amount to the customers.

     Now, I will share a store which will teach the key lesson of the success of Walmart success, Ben Franklin used to sell underwear’s in $2.5 dozen to Sam used to sell 3 underwear’s in $1 to the customers. But, when Sam came to know that same underwear’s he can buy from Harry in just $2 dozen, then Sam started buying underwears from Harry and instead of selling 1 dollar 3 unit, he started selling 1 dollar 4 unit with this his profit for 1 unit decreases. But because many people started taking it from Sam, because that same underwears were expensive in other shops, Hence the total profit of Sam increased.

     Example: He sells the stuff to the customer is $1 which was bought by him in 80 cents and was normally sold by others in $1.20, then with this his profit use to decrease by 20 cents from one unit but with this idea normally three times more people used to start buying that same stuff by finding it cheap, which eventually increase his total profit this is known as Profit from Volume and this is the real essence of discounting, which is followed by many big companies including Amazon is doing it by learning from Sam Walton.

     Now this experiment and rule-breaking wasn’t liked by Ben Franklin heads, but again they failed to do anything against Sam because of Sam made that loss giving store. A very profitable store, which started selling $250k kinds of stuff in a year which was earlier selling only $75k per year, which was giving a lot of profit to Ben Franklin see this is the Power of Creating Results.

5] Break Rules But Create Results

     In the end, what matters most is the result not other factors like time or anything. Therefore, if you focus on creating results even after breaking rules just like Sam, then no one can do anything against you.

     Now with a lot of hard work and experiment, that store became the biggest and profitable store of the sixth state region, the way Sam always wanted it to be. But, later a very huge problem arises due to his small mistake when he created an agreement while taking the Ben shop in that agreement he failed to mention the term which says that he can increase or can buy the store after its completion of 5 years leased period. By not doing it what happened that the owner of that shop became greedy and instead of giving it to Sam, he kept that shop  for himself because that store has become very popular with this Sam’s entire hard work efforts were going to the ground, Sam says that this was his life the biggest low point.

Case Study of Walmart - Business Insane
Walmart - Sam Walton 

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