Most of us are familiar with the Fotune 500 index. A list that describes the most successful companies in the world.
Personally, I have always asked myself: what do they do? What is your business model?
And it is that even in the midst of the political and economic crises that afflict our countries, there are companies that transcend and continue to grow. And that’s why I wonder who are they? what do you do? And what makes them so profitable?
Today I share with you a brief compendium of those first 8 companies that make up this famous index and a little of what they do and who knows if one of these days your company will be part of this ranking.
Top 8 Fortune 500 companies
1. Wall-Mart: Retail trade (retail). Surprisingly, it remains the No. 1 company for several years. Their price reduction strategy has allowed them to break sales records in recent quarters. The company was founded by Sam Walton in 1962. It opened its headquarters and its first distribution center in Arkansas. It had 38 stores that operated with 1,500 employees and sales of 44.2 million dollars.
2. Exxon-Mobil: Oil refinery. The company’s strategy has changed and after more than 100 years of being leaders in the fuel and lubricants market, today its business model turns completely towards the exploration of hydrocarbons.
3. Berkshire Hathaway: Managed by renowned investor Warren Buffett, Berkshire Hathaway is an investment company (Holding) that is based on two activities: Acquisition of shares in private companies and investment in minority participation through the purchase of shares in public companies. The core of the business, however, is the acquisition and control of 100% of the shares of private companies.
4. Apple: is a company that takes care of all tasks within the value chain. Starting with obtaining raw materials and transformation to distribution to the final consumer. A strategy that no other competitor has managed to imitate and is what has marked the true success of Apple in the market and with which it has obtained significant economic benefits.
Apple’s secret is its complete vertical integration strategy. From hardware to software. The Californian company has always believed that for the user to have an excellent experience with its products, it was necessary to control everything, from the hardware to the software. With this, Apple seeks total control over what happens in its ecosystem, preventing others from “fiddling with” its devices or operating systems.
5. UnitedHealth Group: the largest health insurer in the United States backed by Obama Care although with difficulties and high risks due to the policies of the new President Trump.
6. McKesson: America’s Largest Pharmaceutical Distributor.
7. CSV Health: Innovative company whose focus is primarily based on the preventive health of the American citizen.
8. Amazon: it is larger than all Spanish retail together. Amazon’s business model is based on a simple rule. Contrary to traditional distributors, they started out selling non-essential items. With economic logistics and a decentralized stock.
Other companies that made up the top positions in this index but today occupy positions below: AT&T (telecommunications), Chevron (oil refinery), General Electric (diversity of technology, domestic and other product lines), Ford Motor (Parts manufacturer) and Citygroup: (Banks).
You can see the full Fortune 500 index by clicking here.