Sam Walton’s business model for Walmart…

Sam Walton - WalmartSam Walton built a business, Walmart, that is now the biggest retailer in the world.

That’s remarkable, isn’t it? (…by the way, Walmart is also the biggest company in the world…!).

What is extraordinary – the work of a genius – is the fact that he created from scratch an incredible, innovative retail business model.

Reading Sam Walton’s book “Made in America” (…thank you Amazon!), you learn that his business model is unbelievably simple:

  • leverage logistical superiority, to have a faster and more efficient distribution system
  • offer the lowest price possible (relying on higher volumes to sustain profitable growth)
  • leverage purchasing-power to buy at ever-lower prices from suppliers

A very good lesson for many modern retailers (…even online ones…).

Andy Cavallini – andy.cavallini@gaia-matrix.com

Gaia-Matrix

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