A chain of discount departmental stores

and chain of warehouse stores.

 OVERVIEW
ŏ Wal-Mart'shistory is one of innovation,
leadership and success.

ŏ It
started with a single store in Rogers,
Arkansas in 1962 and has grown to what is
now the world's largest - and arguably, the
most emulated - retailer.

ŏ Researchers refer to Wal-Mart as the

industry trendsetter.

ŏ It provides everyday low prices and superior

customer service.
 MARKET

ŏ These stores are meant to "woo shoppers with easier

parking, less crowded aisles and quicker checkout”.

ŏThey grew steadily with sales figure of $218 billion and

some 4500 stores by 2002.

ŏ Wal-mart was among few of the companies to

implement information system to track product sales and
inventory.

ŏWal-mart is the American company to succeed in the

global market.
 CONSTRAINTS FACED BY
WALMART INITIALLY

ŏ Poor infrastructure.

ŏ Lack of understanding with local suppliers.

ŏ Distribution centers resulted in stocking problems.

ŏ Raised costs and prices .

ŏ Problem with merchandise selection .

 INITIATIVES TAKEN BY WAL-MART

o A partnership with a Mexican trucking company which helped

the company to dramatically improve their distribution system.

o A more careful approach towards stocking practices meant the

stores sold merchandise that appealed more to the local tastes
and preferences.
ŏWal-mart continued its steady growth globally in spite of the few early
difficulties it faced, and registered high growth rate.

ŏIn 2004 Wal-Mart generated over $256 billion in global revenue,

establishing a new record .

ŏIn 2006 Wal-Mart net sales rose 9.5% to a record $312.4 billion.

ŏIn 2006, Wal-mart were doing around 20% of there business abroad.
Wal-Mart's marketplace is clearly the world.

ŏWal-mart has total International portfolio divided among three of the

Geographical locations(The Americas, Europe and Asia) with Americas -
71%, Asia - 17%a and Europe - 12%.

ŏWal-Mart International planned to open over 220 new, relocated or

expanded stores in the fiscal year ending January 31, 2007 which they
achieved.
 PRODUCT & SERVICE OF COMPANY

1) Wal-Mart Discount Stores ---

The genesis of this was in the year 1962.
774 stores.
10800 sq ft area.
225 employees per store.
2) Wal-Mart Super Centers ---

It saw its genesis in 1998.

2815 stores.
185000 sq ft.
3)
Neighborhood Market
They also saw their genesis in 1998.
42000 sq ft.
95 employees/store.
MARKET SIDE
 TECHNOLOGY

Deployment of lighter, lower cost in solar technology.

DISTRIBUTION
 Wal-Mart Stores Inc. is selling its distribution
businesses McLane Co. Inc. and Merit
Distribution Services for about $1.5 billion.

 Received at least $150 million in local, state,

and federal subsidies to build 47 distribution
centers in 32 states.

 Has 84 distribution centers in the U.S.

 About 85 percent of all the merchandise sold by Wal-
Mart was shipped through its distribution system to
its stores.

 A distribution center was strategically placed so that

it could eventually serve 150-200 Wal-Mart stores
within a day.

 Ben E. Keith Beers, the largest independent

Anheuser-Busch wholesaler in the United States
serving north, central and east Texas, has been
named "Distributor of the Year" by Wal-Mart Stores,
Inc.
 MANAGEMENT
 Wal-Mart is governed by a fifteen-member
Board of Directors which is elected annually by
the shareholders.

 Robson Walton the eldest son of founder Sam

Walton is the Chairman of the Board.

 Notable members of the board include Hillary

Clinton. Michael .T. Duke is the Chief Executive
Officer and Lee Scott the Chairman of the
Executive Committee of the Board.
 OPERATIONS
They have three divisions:
1. Wal-Mart Stores U.S
2. Sam’s Club
3. Wal-Mart International
It has nine different retail formats:

 Supercenters
 Foods and drugs
 General merchandise stores
 Bodegas
 Cash and carry stores
 Membership warehouse clubs
 Apparel stores
 Soft discount stores
 Restaurants
•Kmart

•ShopKo and Meijer

• Canada's Zellers

• The Real Canadian Superstore

•
•Giant Tiger
CRITICISM

Local Communities

Allegations of predatory pricing and supplier issues

Employee and labor relations

Wages

Working Conditions

Use of illegal workers

 Featured in public debates on health and world
trade

 Is judged in a standard of perfection

 Challenges from detractors

 RISKS TO WAL-MART

 Political factors

 Economical factors

 Social factors

 Internal factors of Wal-Mart

 CONCLUSION

When Sam Walton created Wal-Mart, he declared that

three policy goals would define his business:
1. respect for individuals
2. service to customers
3. striving for excellence

The company is ranked as the second most admired

company in the world by Fortune.