By

PRUDHVI- 171202060

PRERANA-171202010

ANUSHA-171202023

NITHYA -171202048

PRIYANKA-171202053
INTRODUCTION

 Walmart is an American multinational retail corporation

 It was formed on 2nd July 1962
 Largest company in terms of revenue
 Walmart was declared no.1 company under fortune 500
 Largest private employer
 Known for its brand strategy
COMPETITORS

RETAIL COMPETITORS
 Kroger, Costco , Metro ,Carrefour , Tesco, Target, Kmart & Best buy
ONILINE COMPETITORS
 Amazon & Alibaba
Rank Company Revenue Locations Market share
2 Amazon 136 billion 30 countries 38%
3 Kroger 115.3 2,778 4.93%
5 Costco 129 161 13.2%
10 Target 29.6 1792 3.36%
7 Metro 31.6 25 countries 5.8 %
4 Carrefour 76.6 1472 20 %
COMPETITORS COMPETITIVE ADVANTAGE

 Amazon & and Alibaba operate through online platforms

 Metro and Costco operate for wholesale buyers
 Carrefour have both retail and online presence
COMPETITIVE ADVANTAGE
 Cost Leadership Strategy
 Every day low prices (EDLP)
Cost Drivers
Economies of Scale
 Technology
 RFID/Barcodes
 Global Satellite system
 Specialization
 Well trained fleet drivers
Product Design
 Standardization
 Always low prices
Product Techniques
 Process innovation
 Cross docking
 Distribution centres
 Business process re-engineering
 Mobile apps
 Ship from store
 Browsers to buyers
Input costs
 Locational Advantage
 Distribution centres in 150 +mile radius
 Bargaining power
 Non Union Labour
Capacity Utilization
 Ratio of fixed to variable cost
 Fast and flexible capacity adjustment
SUSTINABLE COMPETITION

PRICE
 Lower cost
 Cost Leadership
 Economics of scale
PRODUCT
 Market trends
 Quality products
 Guarantee satisfaction
SUPPLY MANAGEMENT
 Bargaining power
 No middlemen
 Long-term agreements
 Own distribution centre's
 Free packing
PROMOTION
 Advertisements
 Sales promotions
 Personal selling
 Public relations
TECHNOLOGY
 Access to Walmart sales and figures
 Online shopping with free pickup
 Mobile apps
 Assortment advances
 Spend 1% more on IT expenses
 Website improvement
 Inventory optimization
GOBAL PRESENCE

 Walmart U.S
 Walmart international
 Sam’s club
 Global ecommerce
WASTE MANAGEMENT
 Circular economy
 Take-make dispose
OUTPERFORMANCE WITH AMAZON

 Walmart grew online sales for 4th quarter than Amazon i.e. of 29% in
2016

 “Grocery inflation,” which helped the performance of traditional retailers,

and especially Walmart which relies heavily on grocery sales.
 Walmart brought jet.com to expand online grocery business
 Walmart stake in JD.com Chinese E-commerce company that competes with
both Alibaba & Amazon
 Walmart brought Moosejaw an outdoor apparel &sporting equipment's
 Amazon announced that it would have a Black Friday style sale for Prime
members, Wal-Mart countered by offering its own shopping event with
thousands of online-exclusive discounts.
OUTPERFORMANCE WITH TARGET

 On a per share level, Target and Wal-Mart are earning roughly the same amount.
 Wal-Mart has shown better growth than Target

 As Walmart lowers prices, Target has raised them on some items.

 As grocery sales across the industry rise, Target has pulled back on its food
offerings.

 Target's online growth hasn't been fast enough to match Walmart

 Walmart founder Sam Walton, who famously said, "Most everything I've done I've
copied from someone else." That worked for him, but so far it hasn't worked for
Target.
OUTPERFORMANCE WITH COSTCO

 Two of the biggest retail have the stocks head-to-head in today's

competition: Costco and Walmart
 Number of the company's physical locations give it an advantage in terms of
expanding e-commerce presence and ease of delivery.
 Walmart is fairly valued while, Costco seems a touch expensive.
CHALLENGES OF WALMART

 Intense competition from rival brands inside and outside US

 As the global retailer, walmart is exposed to political problems in the
countries and regions
 Walmart has to convince their potential customers of the quality and the
freshness of the food
 The lack of understanding local customs and customers
CHALLENGES OF WALMART

 Digital services need to be integrated within the physical stores

 Due to low prices people in china think that the products have less quality
 Another threat is the rising commodity product prices due to increased
labour costs for manufacturing the products
 Small business vs walmart
REFERENCES

 Case study - Patrick Hayden, Seung Lee, Kate McMahon, Mike Pereira
 Case study - Dr. Mary Flannery
 https://www.walmart.com/
 https://www.businessinsider.in/Wal-Mart-CEO-reveals-the-companys-8-
biggest-problems/articleshow/46790074.cms
 https://research-methodology.net/walmart-business-strategy/
 https://listovative.com/top-15-worlds-biggest-retail-giants/
REFERENCES

 How Walmart Model Wins With “ Everyday Low Prices- Investopedia.com

 corporate.walmart.com
 tradegecko.com-article supply chain management Walmart
 Philip Kotler, Kevin Lane Keller- Text book on marketing management-15 th
edition
 panmore.com - article : Walmart operations management 10 decisions,
productivity
 business.edf.org - improve freight capacity utilization to reduce truck
emission