The company I chose to carry on my BCG Matrix on was Wal-Mart. because this company has become one of the largest and most successful companies within the United States. Wal-Mart started out as a little retail concern in 1962 in Rogers. Arkansas by Sam Walton. Today Wal-Mart has more than 10. 000 shops in more than twenty eight different states. In 2012 Wal-Mart gained gross of $ 421. 849 million dollars. which was an addition of 3. 4 % from the old twelvemonth. ( World Wide Web. subjects. nytimes. com & gt ; Business & gt ; Companies.
p. 1 ) . While accessing the four quarter-circles within the BCG Matrix I felt that Wal-Mart fits into the Cash Cow Quadrant. The Cash Cow Quadrant is when a company has a high market portion in a slow growth industry and the company generates more hard currency than the sum of hard currency that is needed to keep the concern. ( World Wide Web. valuebasedmanagement. net/methods_bcgmatrix. hypertext markup language ) . I feel that Wal-Mart tantrums in this quarter-circle because they have the highest market portion in the industry ; in add-on the industry has a slow growing rate.
( Roberts. May 28. 2012 ) .
The growing rate for this superstore is 3. 8 % and its market portion in their industry is 3. 6 % . which puts Wal-Mart in a really stable place. When the vision of Wal-Mart came about to Sam Walton it was his thought to make a shop that believed in this slogan “Saving Peoples More to Help Them Live Better” . By coming up with this thought this has helped to construct a high client base and in return has allowed Wal-Mart to spread out and by making so Wal-Mart was able to open its first Sam’s Club in 1988. Now Sam’s Club is one of the most profitable price reduction shops. Wal-Mart’s ability to ramify out. and expand has been one of the cardinal grounds why it fits into the Cash Cow quarter-circle of the BCG matrix. In add-on to opening the Sam’s Club shops across the state. Wal-Mart has expanded in other ways. Wal-Mart was able to develop into a complete service superstore by adding a complete food market shop to its shops. This has given Wal-Mart the border over its’ rivals by being able to offer more at low monetary values.
Consumers are able to travel to one shop and do their normal family shopping. apparels shopping. and food market shopping. This is really attractive to people in today’s society with such busy and demanding agendas. As Wal-Mart continued to construct its’ clients it was able to add more service to its’ shop. such as an automotive centre and pharmaceutics. The key is that Wal-Mart continued to offer more while maintaining the cost really low. This has allowed it to be a leader in the industry. Another ground I feel Wal-Mart tantrums into the Cash Cow quarter-circle of the BCG matrix because it presently accounts for the bulk portion of the ace centre market. Wal-Mart’s strengths are their ability to buy big sums of ware and their ability for mass distribution. In add-on. Wal-Mart has a really successful advertisement run that enables it to convey its low monetary values and the fact that it will fit the monetary value of any merchandise offered by any rival. Wal-Mart ability to offer the lowest monetary values in combination with the largest choice of merchandises and service within one superstore is what has enabled this company to be a Cash Cow. harmonizing to the BCG matrix.
Mentions:1. World Wide Web. valuebasedmanagement. net/methods_bcgmatrix. hypertext markup language
2. World Wide Web. subject. nytimes. com & gt ; Business & gt ; Companies
3. Roberts. Bryan and Natalie Berg. Walmart: Key Insights and Practical Lessons from the World’s Largest Retailer. Kogan Page Publisher. May 28. 2012
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