Further more, the company is well-known for its principles of improving its performances and attempting to be more efficient in everything it does. Throughout its existence, the American retailer has focused on implementing information technology techniques in almost all its activities as the common belief was that automatization drives lower costs, lower prices, lower inventory, shorter delivery time and so on. Following these principles religiously, Wal-Mart has become one of the most efficient players in the entire American market, not just in its industry. Efficiency then was logically driving higher productivity rates and increased profitability for the shareholders.
Part D Company Report
The American retail market is dominated by 3 major players: Wal-Mart, Target and Kmart (see table 2). In 2005, the WalMart's market share was 8.82% increasing 0.2% from the previous year and consolidating its leader position on the U.S. market. As we can see from the figures below, WalMart's market share is around 7 times greater than its two nearest competitors, Target and Kmart. The company's position on the market comes to sustain the arguments in favor of its profitability.
Table 2 - U.S. Retail Industry ($ millions)
Source: U.S. Census Bureau, companies' corporate websites
Bibliography
WalMart 2006 Annual Report. On the company's website, last retrieved on September 2, 2007
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Hale, T. (2004), "Understanding the Wal-Mart Shopper," Consumer Insight Magazine, http://www2.acnielsen.com/
Lehman Brothers (2002), "Wal-Mart Stores - it's All About the Lil' Smokies!," Global Equity Research, www.lehman.com
Huey, J. & S. Walton (1992), "Made in America," N.Y._Doubleday.
ACCA - the Association of Chartered Certified Accountants (2004), "Financial Management &…
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