PRESENTED BY:

HISTORY

• Wal-Mart is an American public distribution that runs a chain of large, discount

department stores.

• It is the world's largest public corporation by revenue, according to the 2008

fortune global 500.

• The company was founded by Sam Walton in 1962, incorporated on October 31,
1969, and listed on the New York Stock Exchange in 1972.

• Wal-Mart is the largest private employer and the largest grocery retailer in the
United States. The company has 1.9 million employees in more than 44
countries. As of the end of 2003 it had 4,688 stores worldwide.
 Business Segments

Wal-Mart has two types of divisions –

• Retail divisions and
• Specialty divisions.

Retail divisions are further classified into - Wal-Mart Stores, Sam's Clubs,
Neighborhood Market, International and walmart.com.
The specialty division are divided into - Tire & Lube Express, Wal-Mart
Optical, Wal-Mart Pharmacy, Wal-Mart Vacations and Wal-Mart's Used
Fixture Auctions.
• Present in 15 countries
• Walmax in Mexico
• ASDA in UK
• The Seiyu Co. Ltd in Japan
• Wholly owned subsidiaries in Argentina , Brazil ,
Canada ,Puerto Rico
Walmart Journey Till date
 Growth Journey of walmart
(1970-2003)
During the 1970s.

• Wal-Mart’s sales increased from $31 million to $1.2 billion, a signification growth rate of 287%
& the number of Wal-Mart stores increased from 32 to 276.

During the 1980s

• Wal-Mart’s sales increasing at compounded annual rate of over 36%.

• Introduction of the Sam’s Wholesale Clubs in 1983, and the Hypermart (which was later known
as Super Center) in 1987.

• Made heavy investments in IT. In 1987, Wal-Mart installed satellite communication systems
costing an estimated $700 million.

• In 1989, Wal-Mart stared building a huge database of customer information in its data warehouse
system.
 During 1990s

• Introduced customer information kiosks in its stores in 1996.

During 2000

• Wal-Mart was registered as one of the world’s largest companies, with revenues of $165
billion in fiscal 2000, and

• Launched the ‘store of the community’ program,

• By 2003, Wal-Mart, was the world’s largest company, with revenues in fiscal 2002
amounting to $244.5 billion.

• It does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger
combined.
 What Wal*Mart says
Our Purpose
We save people money so they can live better. Find out what we're passionate about, our
strengths, and our reason for being.

Our History
It all began in 1962 in Rogers, Arkansas. And it’s been one incredible journey. Come
along for the ride; the line forms here.

Our Culture
What is “Culture?” It’s how we treat each other; it’s our special way of doing business. It's
what makes us one of the world's most-admired companies. Find out why, right here.

Our Principles
Our founder Sam Walton gave our company a sense of honor and a set of values that are
still very important to us. Starting with Sam’s 3 Basic Beliefs, here’s what makes us proud
to be part of the Wal-Mart family.
 Wal-Mart
Mission/ To give ordinary person the chance to buy the same thing as rich people.
Vision
Product Strategy 1. Lowest prices across-board the product lines
2. Product USP: core competency:
Low prices, In-stock positions, Customer service, globally-sourced
business model
Service Strategy 1. Respect for the individual
2. High standards of service
3. Constant strive for excellence

Segmentation middle-class, lower middle

Positioning Consistent positioning- “Always low prices”

Activities 1. Food retail

2. Non-Food retail
3. On-line food retailer

Intangibles Personalized customer service

 Communication through IT

• Electronic Data interchange (EDI) systems: minimizing the incidences

of stock –outs and enabled better inventory management.
• Satellite communication systems & GPS
• Database of customer information in its data warehouse system
• Introduced an innovative hand-held product called 960
 WALTON’S RULES

• Rule # 1: The customer is always right.

• Rule # 2:If the customer happens to be wrong, refer to Rule # 1.

CUSTOMER CENTRIC
• Sundown rule.

• 10-foot rule.

• Rollback prices

• Special buys
 CONTD…

• Keep the store open later than most other store, especially
during Christmas season
• Moonlight Madness Sales
• Great Return Policy
• Integrated online and offline business
• Walmart credit card
• Special Buys
• Aggressive Strategy:
– Employees were encouraged to provide customer service which
was beyond their expectations.
– Regular customers at Wal-Mart were made to feel special by
being addressed by name
 Walmart Cheer
Sam Walton, founder leads the Walmart cheer
• Give me a W!
Give me an A!
Give me an L!
Give me a squiggly!
Give me an M!
Give me an A!
Give me an R!
Give me a T!

What's that spell?

Walmart!

• Whose Walmart is it?

It's my Walmart!

• Who's number one?

The customer! Always!
 Walmart Formats:

Walmart Discount Stores

• Sam Walton opened his first Walmart discount store in 1962. Today, there are
810 stores offering a pleasant and convenient shopping experience across the
United States. The size of an average store is 107,000 square feet. Each store
employs about 225 associates.

• Stores feature wide, clean, brightly-lit aisles and shelves stocked with a variety
of quality, value-priced general merchandise, including:

Family apparel ,Automotive products, Health and beauty aids, Home

furnishings, Electronics, Hardware ,Toys, Sporting goods, Lawn and garden
items, Pet supplies, Jewelry, House wares.
 Walmart Supercenters

• Supercenters were developed in 1988 to meet the growing demand for

convenient, one-stop family shopping featuring our famous Every Day Low
Prices. It saves time and money by combining a full grocery and our general
merchandise under one roof. There are 2,737 Supercenters nationwide, and
most are open 24 hours. Supercenters average 187,000 square feet and
employ about 350 or more associates.
• Supercenter groceries feature:

Bakery goods, Deli foods, Meat and dairy products, Frozen foods, Fresh
produce, Canned and packaged goods, Dry goods and staples, Condiments
and spices Beverages, Household supplies
 Walmart Neighborhood Markets

• Neighborhood Markets offer a quick and convenient shopping experience for

customers who need groceries, pharmaceuticals, and general merchandise all at
our famous Every Day Low Prices. First opened in 1998, there are now 151
Neighborhood Markets, each employing about 95 associates. A typical store is
about 42,000 square feet. Neighborhood Markets feature a wide variety of
products, including:

• Fresh produce Deli foods Meat and dairy products Bakery items Frozen foods
Canned and packaged goods Dry goods and staples Condiments and spices
Health and beauty aids Pet supplies Stationery and paper goods Household
supplies Drive-through pharmacies One-hour photo centers
Marketside

•Opened in 2008, Marketside stores are small community

pilot grocery stores specializing in fresh, delicious meals
at great prices. In these stores, customers can shop for a
variety of fresh ingredients, restaurant-quality prepared
meals and their everyday favorite national brands - even
freshly baked breads and a wide assortment of wines. It
provide a fresh and convenient shopping experience for
busy people who want an easy answer to the question,
'What's for dinner?'
Walmart.com
•Founded in 2000, Walmart.com brings the convenience, great
merchandise selection, friendly service and Every Day Low Prices of
your neighborhood Walmart to the Internet.
•Walmart.com features more than 1,000,000 products, plus easy-to-
use music downloads and digital one-hour photo services. And,
adding more great products every day.
•During the holidays, Walmart.com features many special offers
available only online. It’s also a convenient place to find out about
exciting in-store holiday specials.
•With innovative “Site to Store” program, one can purchase items at
Walmart.com and then have them shipped free to your local store for
pickup.
 Helping People Make A Difference

Wal-Mart doesn’t only help their customers at their stores but they
do help their customers with their life.

• Provides scholarships

• Helps children’s hospitals

• Provides money to fund raisers

• Cares about environment

 Walmart has been criticized by….

• some of the community groups,

• women's rights groups,
• Grassroots organizations, and
• labor unions
 International Operations

It results to a quarter of Wal-Mart's revenue which is $401

Billion.
 Reasons for International Operations

• Slowing down of it’s per square footage growth in US

• Stop cannibalization & continue expansion
• Opening new domestic stores led to an approximate 1.5% decline in
comparable store sales.
 PROBLEM FACED…..

• Problems in Operating Environment.

• Problems in External Environment.

• Problem of cultural mismatch.

 Steps Taken

• Acquiring local retail chains example- Trust-mart in China & Sonae chain
in Brazil
• 75% of stores opened in 2009 were international stores
• At present 3000+ stores outside US
• Planning to open 550-600 new stores outside US in 2010.
 Some other strategies

• Manufacturing in China Makes Wal-Mart Vulnerable to Currency Rate

Changes.
• Wal-Mart Uses Large Size to Maintain Low Cost Leadership.
• Wal-Mart Is Tailoring Merchandise Offerings by Region.
• Emphasis on private labels.
 Presence in India too…….

• Wal-Mart has opened its cash-and-carry joint venture in india with telecom giant
Bharti Enterprises and is called as “Best Price Modern Wholesale”, and the store
sells everything from bed-sheets to ear buds.
• It has come up at an initial cost of $7 million (nearly Rs 350 crore) and provides
500 direct jobs.It has tie-ups with 30,000 retailers and 8,000 suppliers across the
country.
• It has also tied up with Kotak Mahindra Bank to offer "business cards" with which
customers can shop on credit for 14 days
• Fifteen more such merchandise stores in north India will be there in the pipeline for
the next 2-3 years.
• Protests from small businesses (kirana )

• FDI restrictions.

• India’s poor infrastructure

• Poor public image – predatory pricing , unemployment

• India’s diversity and heterogeneity

• Competition from Indian Retailors includingPantaloon,Shopper’s Stop ,Piramals

• Regional governments are very strong politically

India allows FDI in cash-and-carry wholesale stores which cater to retail store owners, offices
and institutions instead of retail customers.
 SWOT ANALYSIS (GLOBAL)
Strength
• Efficient supply chain management
• Targeted marketing
• Service innovation and technology
• Growth through adaptability.
• E-tail’s continued development
• Least cost of packaging
• strong penetration strategies
• Infrastructure (financial strength)
Weakness
•Poor public image
•Late entrant in international market.
•Unable to adapt to different countries
• Strict labor laws
•Were unable to handle media
•High law suits against the company.
•Low penetration in European union

Opportunity Threats

•Many countries are still left •Terrorism

•Unorganized retail •Competitors
•Globalization (diminishing trade •Negative publicity
barriers) •International laws against anti
•Cold Storage market dumping
•Increase in consumer purchasing power •Campaign against anti competitive
•E-business practices
•Unemployment
 Awards & Recognition
• Ranked #1 Consumer Staples Company - Carbon Disclosure Project
(CDP) 2008 report and scored 89 out of a possible 100
• Corporate Energy Conservation, Energy and Environment Award
• 2009 Green Choice Award
• 2009 Sustainability Excellence Award
• Top 50 Companies for People with Disabilities
• Top Organizations for Multicultural Business
• Number One Most Admired Company in America
• Best Place to Work in the United Kingdom (ASDA)
• Top Organizations for Multicultural Business
Photo Gallery
 www.walmartfacts.com
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www.gartner.com
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www.forrester.com
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www.hoovers.com
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www.wikipedia.com
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www.tsmg.com
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www.finance.yahoo.com
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www.ficci.com
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 Different logos
used by Walmart in
chronological order

Thank You