In 1962, when Wal Mart was introduced, case study solution primary wisdom held that large retail operations could not survive in towns with fewer than 100,000 citizens. But Walton determined that this was where opportunity lay, and he intentionally opened stores only in small towns where there has been no large scale competitors. Walton understood that these customers would value his offering, that they might admire being in a position to shop in the neighborhood, in preference to making long journeys to greater towns. He also realized that these customers were worth more than they seemed. Although their wallets werent as full as those of folks in large cities, Wal Mart was in a position to command a far better share of their spending as a result of there was no competition. The aggregate of cheaper premises, lower labor costs no competition meant that Waltons customers were extraordinarily profitable to service.