How do you feel the 10 Rules Sam Walton followed while building Wal-Mart allowed it to overtake retailing behemoths like Kmart, Sears, Woolworths, Service Merchandise and Montgomery Ward? Michael Bergdahl's answer: I think Sam Walton's competitors, and his early suppliers, underestimated his passion and commitment for his rural retailing discounting strategy. Because Sam Walton started his business by focusing on the underserved customers in rural America he “flew below the competitive radar.” Kmart, Sears, Woolworths, Service Merchandise and Montgomery Ward all opened stores in metropolitan areas while Sam Walton challenged the status quo by opening big stores in small towns. It was a commonly held belief at that time that there wasn't enough business in small towns to justify opening “big box” stores. As it turned out the market area for his stores drew customers from a 50 mile radius. That's how attractive his low price strategy was in small town America . Sam Walton intentionally presented himself to the retail world as a small time operator lulling his larger competitors into a false sense of security. As it turns out in the early days his competitors didn't take him seriously. By the time his competitors figured out Wal-Mart was a real competitor it was too late. Sam Walton had already established his Every Day Low Prices (EDLP) Strategy in his rural stores in the southern USA , and by the time he embarked on opening stores in metropolitan areas he had the financial wherewithal to compete very effectively. Sam Walton's focus on low prices, exceeding customer expectations and fanatical focus on controlling expenses allowed him to steal market share from his larger competitors who were slow to change. By the time they figured out that Sam Walton had shifted the traditional retail paradigm his competitors were unable to adapt.