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Walmart

Wal-mart
Submitted By:
Ab
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Walmart

About Wal-mart
o Sam Walton opened the first store in 1962 in
Rogers, Arkansas.
o Within 5 years there were 25 Walmart stores
earning a total revenue of $12.6 million in sales.
o In 1972 Wal-mart was listed in the NYSE.
o In 2005 Wal-mart incorporated sustainability in
it’s business under their CEO H Lee Scott Jr.
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Walmart

Contd.
o In August 2007, Wal-Mart and Bharti Enterprises
announced an agreement to establish Bharti Wal-
Mart Private Limited.
o Mike Duke succeeded Lee Scott as president and
chief executive officer onFebruary 1, 2009.
o Presently 7,800 stores and club locations in 14
markets employ more than 2 million associates,
serving more than 176 million customers a year
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Walmart

Vision and Mission

o Saving people money to help them live better.
o Offers the best quality merchandise at the lowest
prices in all their stores, from school supplies, to
household items and top quality groceries.
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Walmart

Financial Data(net income in millions vs

years)
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Walmart

Strategic partnerships
o Pioneering effort with Proctor & Gamble (permanent
team of 70 P&G people in Bentonville, it’s
headquarter)
o Partnership with CRM & Environmental Defence
Fund to implement sustainability in it’s business.
o Clinic at Wal-Mart: Wal-Mart partners with
hospitals to rapidly expand in-store clinics(wants the
good will a trusted hospital name can provide)
o Single largest U.S. importer of Chinese consumer
goods
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Walmart

SWOT
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Walmart

Strategy of Wal-mart
o Same goods for less( charges 2-5%lower price) & still
earns profit.
o Very good operational efficiency
o Use of IT in all verticals of business
o Effective use of logistics management
o Global Expansion for new market opportunity
o Networked to HQ via private satellite in 1983
o Bargaining power over suppliers
o Data used to “profile” each market
o Predicts demand, optimizes stock
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Walmart

Operations Strategy
o Wal-mart created significant advantage through
the systems it developed to manage it’s
warehouses and stores
o Initially Wal-mart choose locations without direct
competitions from large chains(rural areas)
o Wal-mart created a culture of supporting values,
skills, technologies, supplier –customer
relationship, HR and approaches to motivation
that could not be easily copied by other firms
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Walmart

Organic Growth
o Steadily builds new stores
doesn’t buy other chains
o Builds stores in cheap locations with room for
expansion from standard, efficient design (no
acquisitions)
o With only 10% (vs. 25% of industry std) of space
for storage
(relying on logistical superiority)
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Walmart

System lock in

Presently Wal-mart is in
the best product stage,
but steadily moving
toward total customer
solution.

Total Customer solution Best product

(wal-mart)
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Walmart

Value proposition
• Excel at attributes such as price, quality, on-time
delivery, selection, availability, that their
competitors can’t match
• Non-commodity brand based on lower prices,
which is a key differentiator and value proposition
to most of our society today.
• Change in tagline last year – from “Everyday Low
Prices” to “Save Money. Live Better.” proves it’s
move toward sustainable products with low cost.
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Walmart

Conclusion
ØWal-mart is the leader in the Low cost retailing
industry
ØWith $404.16 billion in revenue, the company is
bigger than 160 nations.
ØImbibing sustainable business practices in it’s
business process
ØHas strategic partnerships with P&G, China,
several consulting firms which provide them
sustainable business consulting.
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Walmart

Thank you!