THE CASE ABOUT

Presented by :

Abhay Ramteke
Abhishek Bankapur
Akshay Kulkarni
Ambaldage sawan
Anand Nadgir

Facts about the case

Walmart

Question 1:- what is wal- mart strategy? What is

the basis on which wal mart builds its competitive
advantages?
Everyday low price (EDLP)
There are not depended on suppliers and they dictate the
terms towards there suppliers. Although they have 3000
suppliers.
They adopt saturation strategy for store expansion.
They have adopt satellite network system which helps them
in effective logistics operations.

Q2:- How do wal -mart control system

help execute the firms strategy?
The use of technology which helps in real- time analysis.
Compitative advantages are:- location, cost, employee
motivation.
Store incentive plans to reduce pilferage and shoplifting.

SWOT Analysis
The SWOT analysis of wall-mart retail:Strengths:Wall-mart is powerful retail brand.
Wall-mart has grown substantially over recent years and has
experienced global expansion.
Wall-mart has a core competence involving its use of IT to support
its international logistics system.
A focused strategy is in place for HRM and development.
Weaknesses:Wal- Mart is the Worlds largest grocery retailer and control of its
empire, despite its IT advantages, could leave it week in some areas
due to the huge span of control
Since Wall-mart sell products across many sectors, it may not have
the flexibility of some of its more focused competitors.
The company is global, but has a presence in relatively few countries
Worldwide.

Opportunities and Threats of wall-mart:Opportunities:To take over, merge with, or form strategic alliances with other global
retailers.
There are tremendous opportunities for future business expansion.
New locations and store types offer Wall-mart opportunities.
Opportunities exist for Wall-mart to continue with its current strategy of
large, super centres.
Threats
Being number one means that Wall-mart is the target of competition,
locally and globally.
Being a global retailer means that Wall-mart is exposed to political
problems in the countries where it has operations.
Intense price competition.

BUSINESS, CORPORATE AND INTERNATIONAL LEVEL STRATERGIES

OF WALL-MART:5.Business-level Strategy:Wallmart uses a combination strategy of cost leadership and differentiation.
They provide a wider variety of products and services with the same or better quality
at a price that is cheaper than their competitors can provide. Wallmart concentrates on
finding ways to lower their costs by constantly rethinking how to complete their
primary and support activities to reduce costs still further while maintaining
competitive levels of differentiation. Their successful supply chain management is an
important way helping them to implement the cost leadership strategy. They has
effective inbound
logistics by using just-in-time inventory. And they have cut costs from outbound
logistics by creating better fuel efficiency in their trucks, getting more pallets on a
load, and decreasing empty miles driven by their trucks.
Wallmart also reduces costs by buying in large blocks. Technology plays a key
role in Wallmarts supply chain too, it allows Wallmart to accurately forecast demand,
track and predict inventory levels, create highly efficient transportation routes, and
manage customer relationships and service response logistics

6.Corporate-level Strategy:The major reason behind the success of Wallmart lies in the fact that the company
believes and concentrates on the strategy of single business, which means more than
95% of its revenue come from their grocery business. Over 30 years, the strategy of
single business has been contributing greatly to the success of Wallmart, they have
never believed in the concept of diversification for the sustenance of its growth and
also its advantages at the competitive level
7.International-level strategy
Wallmart has been able to successfully enter into the global market because of the
use of multinationalbusiness strategy.
This strategy involves that customers of different countries are treated differently and
hence productivity and profitability are high. It is imperative for Wallmart to cater
every region's differences in product preferences; thus, they work under the "Different
Stores for Different Folks"

PORTERS FIVE FORCE MODEL OF WALMART

Intensity of Competitive Rivalry (Competition)
The intensity of competitive rivalry is strong in the retail industry. There
are many firms of different sizes competing in this industry environment.
The following external factors are the most significant for Walmart to
consider with regard to competition:
Large number of firms in the retail market (strong force)
Large variety of retail firms (strong force)
High aggressiveness of retail firms (strong force)
Walmart experiences the strong force of these three external factors in
competitive rivalry in the retail industry environment. The company
must remain aggressive to remain competitive. While it is currently
the industry leader, Walmart must keep its growth pace to remain in
this position.

Bargaining Power of Buyers

Walmart faces the weak intensity of the bargaining power of buyers
in the retail industry environment. The large population of buyers
makes it difficult for them to impose significant pressure on retail
firms. Walmart must address the following external factors
concerning the bargaining power of buyers or customers:
Large population of buyers (strong force)
High diversity of buyers (weak force)
Small size of individual purchases (weak force)
The large population of buyers exerts a strong force on Walmart
and the retail industry. However, the weak force of buyer diversity
and the weak force of small individual purchases counteract such
condition. In effect, the bargaining power of buyers is weak in
influencing Walmart and other retail firms

Bargaining Power of Suppliers

The bargaining power of suppliers has weak intensity in the retail
industry environment. There are many suppliers in the retail industry.
Large firms like Walmart can easily affect these suppliers. Based on
this condition, Walmart and other retail firms must address the
following factors contributing to the bargaining power of suppliers:
Large population of suppliers (strong force)
Tough competition among suppliers (weak force)
High availability of supply (weak force)
The large population of suppliers has strong potential to impact
firms like Walmart. However, there are many suppliers competing
for the limited space in retail stores. Also, the high availability of
supply makes it difficult for suppliers to impact retail firms. Thus,
Walmart and other retailers face the weak intensity/force of the
bargaining power of suppliers.

 Threat of Substitutes or Substitution

The threat of substitutes or substitution has weak intensity in
affecting the retail industry environment. Walmart offers a wide
variety of goods and some services that have a few or no
substitutes. The following external factors are the most significant
on Walmart, concerning the threat of substitution:
Considerable availability of substitutes (moderate force)
Low variety of substitutes (weak force)
Higher cost of substitutes (weak force)
Some substitutes to Walmarts goods are readily available. This is
a significant consideration in the retailers strategic planning
process. However, the external factor of the low variety of
substitutes makes it difficult for consumers to move away from
products available from retailers like Walmart. Also, some
substitutes are more expensive than the low-cost goods available
at Walmart stores. Thus, in the retail industry environment, the
threat of substitutes or substitution has a weak intensity/force on
Walmart.

Threat of New Entrants (New Entry)

Walmart and other retailers must address the strong-intensity threat of
new entrants. New entry of retail firms is easily achieved even in the
presence of giants like Walmart. Small retailers can enter the market
and compete on the basis of convenience, location, specialty, and other
factors. This force is broken down into some of its component external
factors, as follows:
Low cost of doing business (strong force)
Moderate capital costs (strong force)
Moderate cost of brand development (moderate force)
It is costly to develop a new entrants brand. This condition exerts a
moderate force on companies like Walmart. However, the cost of
establishing a new retail firm and the cost of running it are low to
moderate. Thus, new entrants can keep operating and become
potential threats to firms like Walmart.