"[the case analysis] wal-mart success brings us what apocalypse?

Everyday parity

We are all in for customer service, you might think you are in for your supervisor or manager work, but the fact that he and you are same, outside our organization, there is a big boss, that is the customer, the customer is supreme.

-wal-mart founder Sam Walton, (SamuelMooreWalton)

The 1996 summer to shenzhen people is hot, but television and newspapers and a take turns to appear more let the heart of the news of the hot: the global retail giant wal-mart PengCheng land! At that time, the whole of the shenzhen as a sensation, their people, to go to wal-mart in shenzhen two anchor point--and new west east honghu, see the king of world retail presence.

And one hundred years Sears (Sears), compared to wal-mart (Wal-Mart) can only be regarded as a young man, only 30 years of history, however, is in the short of 30 years, wal-mart painstaking management, from country to city, from North America to go global, and finally become the world's largest retail stores. In 1996, wal-mart in global sales of more than $100 billion, is three times the sears. Of the fortune 500 list 11, 1997 years up to eight. Wal-mart founder Sam Walton, (SamuelMooreWalton) had been "Forbes" magazine's first American, in recognition of its outstanding entrepreneur spirit, President bush was awarded in 1992 "in the President's medal of freedom", this is a citizen of the United States the highest honor.

Segments of the market

Wal-mart at startup, is facing the powerful sears, kay matt (K-Mart), and other retail giant. At the time, these big retail enterprise network are concentrated in the big cities, has no intention of into small towns and villages. In their eyes, small towns don't have to open retail conditions, their principle is, only more than 25000 city to consider a shop. But Sam says, it is a potential of small towns, and is the foundation of the development of retail in the future. Sam adopted a "rural surround city" strategy, as he will be small towns development retail market segment. Sam by the state as a unit, a county a county building point, until this state basic saturated, then look to the next state. The state expands to regions, by the district extension to the country.

Wal-mart business expansion method, in addition to open new stores outside, still opened a Sam's club, each customer as long as pay $25, and can become members of the club, enjoy the wholesale price treatment. In addition, Sam is the way through mergers, the scale of the chain extraordinary development. In 1987, wal-mart stores total to 1000 home, has more than 1800 companies in 1998, more than 400000 employees.

In the business strategies, and wal-mart initiative "price sales" law, in the retail store hit "parity" every day of the advertisement, the same kind of goods in the wal-mart than the other shop much cheaper. The company every Saturday morning meeting held managers, if there is a goods in other enterprise report than wal-mart stores cheap, then immediately decided to depreciate, wal-mart's slogan is "for the customer to save every dollar". In fact, wal-mart advocates low cost, low cost structure, low price management thought, general retailers of the profit at around 45%, and wal-mart as long as 30%.

In 1970, wal-mart stock market, Walton I have wal-mart stores 20% of the company stock, 1985 value at $2.8 billion, the Forbes 400 list of the richest man in the top. In 1992 was awarded the medal of freedom "walden" soon after, died of cancer, when his property has reached 28 billion us dollars. The staff working at wal-mart for enterprise of red imported fire and fortunes, through the profit sharing program, many managers at retirement has become a millionaire, according to a report in the company 24 years of cashier, retirement account of 26. 20000 dollars.

Advanced management method

In order to reduce the cost, wal-mart directly from the factory stock, try to reduce the intermediate of circulation. The general retail is the branch to the factory orders, again by the goods sent to each branch factory. And wal-mart implements is "centralized ordering, unified distribution". Each branch of the first order are collected from the headquarters, and then by the headquarters to plan as a whole the order. Due to the large order is, can enjoy more than other retailers cheap wholesale price. The order after clinching a deal, the company's team will be sent to the company's goods distribution center. Wal-mart has in the nation and a huge distribution center, the distribution center is responsible for the goods to different stores. The location of the distribution center through careful research, product from the distribution center to the branch of time can't more than one day.

Wal-mart distribution centre in the United States is very famous. Each distribution center floor slab allegedly area to add has 20 several of a football pitch, the loading platform for 30 truck and loading, unloading platform has 135 unloading location. Wal-mart has the largest team-" wal-mart are ", there are 2000 cars, trucks trailer 11000 cars. No wonder people exclaimed: where is the chain, it is a "wal-mart empire"!

And other established the shop in the center of distribution, compared the efficiency of wal-mart distribution centers may be said to be very high. Wal-mart stores have more than 80000 goods, 85% of the goods by the distribution center is the supply, the other competitors can only 50%-60%. Wal-mart's retailers in the computer from open order to goods shelves, average only need in two days' time, and other competitors requires 5 days.

Wal-mart distribution system efficiency is largely due to its advanced management method. In 1983, wal-mart and the United States hughes cooperation, spent $24 million launched a commercial satellite, based on this, and $700 million into a huge sum of money, established the computer and satellite interactive communication system. With this system, the company headquarters, and retail distribution center between the conversation can be very convenient, also can undertake new product demonstration.

In the wal-mart headquarters, have a high-speed computer, with the nation 24 distribution centers and more than 2000 chain stores connected, through the store cashier scanner sold every a commodity, stored in the computer will automatically inside, when a commodity reduced inventory amount to, computers would be sent a signal for help, ask the headquarters arrangement source, and will be delivered to the recent distribution center, then the distribution center of information system arrange delivery time and route, the whole process not more than 48 hours. This inventory management, so that the company can quickly grasp sales, supplements the shortage of inventory, do neither and not DuanDang backlog.

"In the retail trade may not use a computer to control fresh, but use satellite means in the world can say is unique, perhaps only wal-mart can do get. But it is this efficient distribution and the internal management system, make the cost of wal-mart is greatly reduced and accelerated the capital turnover, reduce inventory cost. Says, wal-mart's goods shipped to stores accounts for only 3% of the cost, and other competitors are need 4. 5%-5%, it ensures that the wal-mart at low price to sell their goods. This is wal-mart success.

Parity view

To provide customers with parity service is the biggest characteristic of wal-mart. Mention parity service, people often thinks of above all is the price is low, but wal-mart more on the quality of the service. Wal-mart think, low prices is the important content of the parity, but lower the price at the same time, can't reduce service. To provide customers with value-added services, is the quintessence of parity, in the customer spend certain conditions, such as can enjoy satisfied service, is actually won the parity service.

Wal-mart supervalve service specific reflected in three aspects:

Provide satisfaction to customers than more satisfactory service. Wal-mart employees request, to provide every customer satisfaction than more satisfactory service. That is to say, a service, light enough to make the customer satisfied, it should find a way to make the customer provide the service surprised. Sam Walton, said: "let us become customers the best of friends, smile all the customers, our visit to offer them we can give services, and continuously improve the service, the service should be more than the customer the original looking forward to, wal-mart should is the best, it should be able to offer more than how to other shops more and better service."

At wal-mart, this kind "satisfied service" case of creditors. A man named Sarah of their employees, a children from central road opened, to avoid an accident; Another name Phyllis employees, customers implementation of a heart attack emergency care, make its feet; And a man named Andy employees, active lengthen working hours, to help a mother pick son birthday present, but at the delay his son's party.

The ten steps to principle. Wal-mart employees requirements, no matter when and where, if the customer appeared in ten step range, should look at the customer's eyes, active say "hello", ask if you can help.

In May 1998, shenzhen retail business industry association of China's retail business management held technology conference, with the national invitation wal-mart nearly 300 retailers meet. Most retailers are hoping to hear at the meeting in the business secret wal-mart, but to their disappointment, wal-mart's representative did not provide any special method, they emphasized repeatedly the is the transformation of the notion of.

Rules for success

Many people are summarized the successful experience of wal-mart, let's take a look at the wal-mart founder Sam Walton, is what to say. Walton in his autobiography "rich a the United States," a book, summarizes the cause of the success of the ten rule, this is:

1. Dedication. Through the work of the enthusiasm on the shortcomings overcome. Only love you the work, can devote yourself, others also will be affected by your infection, this is the key to improve work efficiency.

2. And the subordinate to share interests, depending on the subordinate to partner. Walton in the way that partnership to lead the enterprise, to encourage the staff hold shares in the corporation, so that employees will put the boss as companion, and create the incredible performance.

3. Motivated employees. Not only is the material stimulation, to keep new idea, motivation, challenge your subordinates. Every day to think some new, more interesting ways to encourage employees, creating a uplifting atmosphere.

4. Communication. All things are to communicate with colleagues, and they know more, the more we can understand, and also more concerned about the development of the enterprise. Once they start caring about the development of the enterprise, what difficult also can stop them.

5. Spiritual encouragement. Money can buy loyalty, but people need more spiritual encouragement. Should thank their contribution to the company, nothing can replace a few words carefully the phrase, timely and sincere gratitude words.

"6. Success to be happy, failure is don't lose heart. Not to take themselves too seriously, try to relax, so that the people around you will be relaxed, full of fun, show passion. When work appear fail, put on a outfits made to sing a song, jolly, someone else will sing together with you.

7. Listen to each person's opinion, let everybody can. The first line of the employees know the actual situation, to try to listen they reflect problems and puts forward Suggestions, this is the comprehensive quality management connotation is in.

8. Beyond the expectation of customers. Give the customer need, and based on this, plus a bit what, so customers will appreciate you, will come to your shop again and again. Appear fault, sincere apology, no excuse.

9. Control the cost. Cost less than rivals, to create a competitive advantage. An efficient operation of enterprises, even made a mistake, and can also quickly on its feet again. Conversely, a inefficient operation of enterprise, despite a prominent, but eventually it will fail.

10. Give up the traditional ideas, walk the road of innovation.

In all the others have turned out the way in, if you choose a different path, you will probably find the opportunity, although at this time someone will include even accused you, shake your will. Wal-mart has just started, a lot of people think: in a small town of more than 50000 people in a discount shop is no way out, but wal-mart firmly follow your own way, and finally succeeded.

Shenzhen offensive

Wal-mart foray into China, first saw shenzhen special economic zone, is its long-term strategic thinking, and other large retailers, Europe and America, wal-mart into China in front, to Chinese market for years and research, population, income, the regional environment, culture and government macro policy factors were careful analysis. They estimate, China folk consumer spending in 2003 to reach $734 billion in the coming years is the world's fastest growing consumer market. Wal-mart in China's investment focus on the future, they suggest, in order to open the Chinese market, can three years don't profit, this is actually a "first survival, development, and profit after the thought of".

Wal-mart China company President Mr. ZhongHaoWei once said, the company in a few years to open 200 stores in China within. Choice for the first station of shenzhen because, shenzhen is a city of migrants, including all over the country's elite, shenzhen wal-mart is the sales personnel training school. A few years later, the company can put these employees sent back their hometown to when wal-mart's vice President, shenzhen wal-mart chain peremptory became wal-mart "" "northern expedition huangpu military academy ", it serves to show its strategic intention of superior.

Take a look at wal-mart's ads. On August 7, 1996 is wal-mart sam-member store after day. This day, "shenzhen special zone daily", "shenzhen business newspaper" and so on all major newspapers have published wal-mart "China's first" considerably the advertising. In the AD wrote: "wal-mart shopping square, a real promise, every day we feel. Card-carrying goods of parity to bring you quality assurance, friendly smile service allows you to enjoy the true shopping fun." Words embodies the characteristics of wal-mart, "wal-mart shopping plaza by active and flexible purchasing distribution, and strive to make products to keep low, as far as possible will benefit transfer to customers." "Everyday parity, consistent", "all we do, is to save your money!" Ads and shopping square landmark clear wal-mart and Sam's club stores's position to route, via the bus. And advertising in London, newspapers and also ran the "wal-mart's story", a time formed the wal-mart whirlwind. It is said that to Sam's club stores when practice, has already sold 43000 copies the membership card.

Wal-mart founder Sam Walton, the management characteristic in talking about wal-mart, said: "we all hope every hour beyond the needs of the customers. If you imagine yourself as a customer, you would hope that all of the thing can comply with their requirements, variety complete, quality is excellent, commodity price is low, service, warm and friendly business time is flexible and convenient conditions such as parking," say, these characteristics of wal-mart in shenzhen got a very good expression. Wal-mart opened on the same day, people found that not only commodity complete kinds, miss enthusiasm thoughtful, more important is, making prices higher than other merchants cheap one big chunk. Kang teacher instant noodles, sell 3 elsewhere. 5 yuan, here are priced at 2. 8 yuan, a noodles cheap 7 cents, to working class for, it would be a huge attraction. Wal-mart when practice pose a 100 sets low price large screen projection TV, completely sold out within a week. Again see parking conditions, shenzhen wal-mart shopping plaza have the 150 parking Spaces, the shenzhen Sam's club stores have the 400 parking Spaces, the businessman in shenzhen is not unique.

As is known to all, and retail sales have investment cycle is short, quick effect, the characteristics of high profits. In recent years, with the improvement of people's living standard, the domestic businesses are focused their attention department stores, and so we see, a place in the street bungalow bulldozer is thrust in the roar, and in its place is a beautiful mansion. But unfortunately, the decoration of the beautiful architecture before long it hung up the closure to the brand. Businessmen complain competition, blame a weak consumer market. Ought to say, these reasons understandable, but the question is why in this case, the foreign capital chain door but it can pedestrians, poured continuously?

Wal-mart started from the countryside, but just 30 years of history, wal-mart in the stage of foundation ought to saying is very difficult, it is facing the sears, strong commercial giant, big city market has been divided over. But wal-mart just caught this, develop the rural market opened up, step by step, start to spark set the prairie ablaze trend, the successor, become the United States and the world's largest retailer. In the internal management, wal-mart with the parity, give the profits to the customers, and use of high-tech means, hold down costs, and finally, on the industry made a competitive advantage. Look, the problem is not in any market, but can not find the market, using the market to give opportunity, develop themselves.

"To provide customers with best service is wal-mart success has a basic experience, is also one of its competition advantage. In 1992, President bush to wal-mart headquarters is located, visit the ill Nashville benton, and awarded him Walton" medal of freedom "to the presidential couple, wal-mart employees so that the President shouted slogans couple. Wal-mart was being employees shout slogan is:

A Wal!

A Mart!

What is that?

Wal-mart!

Who is the Lord?

The customer!

Wal-mart China company President Mr. ZhongHaoWei in talking about it once said to customer requirements what do what, this is wal-mart traveled all over the world in the faith. "The customer is god, all service industry all know, but how to do, how to do better, it is crucial to the success of the retailers." Take parity this point, a lot of people just understand the parity for low sales, it is a kind of goods and not people with guidance the management idea. And wal-mart emphasize put the customer first, respect people, understand person, not only for the customer provides general service, but also provides unexpected service. In contrast, we see, the domestic some stores often appear long lines, adjoining supercilious look, even forced down phenomenon, the reason is not adhere to the "people-oriented" management idea. In this respect, it is to learn some wal-mart shall be??????