|


÷


` 1962 -Founded by Sam Walton , headquartered
in Bentonville, Arkansas.
` 1969 - Incorporated on October 31.
` 2009- It generated 51% of its US$258 billion sales in the
U.S. from grocery business.
` 2010 -The world's largest public corporation by revenue.
` Wal-Mart has 8500 stores in 15 countries, with 55 different
names .
` Each week, about 100 million customers, nearly one-third
of the U.S. population, visit Walmart's U.S. stores.
V

÷ ÷

÷

The size of the corporation has

grown to epic proportions.
º
 
º
` üompany is treated on exception rather than aspiration.

` They are moving into new market and competition in

those markets are moving to new segments.

` Gained bargaining power over suppliers.

` It is violating partnership between itself and suppliers.

` Scale , scope, speed in creating monopoly

environment.
º
 
º

* Expose company to regulation from government

(sanction and taxes).

* Puts the company at risk of class actions suit.

oºº
÷
 ּ


1. üreate SBU¶s
* Îogistics Division
* Retail Division
* Food Division
* Entertainment Division.
oºº
÷
 ּ

^


* üompany can grow as a whole with out any

perceivable threat from the government or
competition due to hegemony.

o




` Rely on effective communication between SBUs

and corporate level.

` Extra cost associated with creating SBUs.

oºº
÷
 ּ


2. Public private partnerships.

* Describes a government service or private

business venture which is funded and operated
through a partnership of government and one or
more private companies.
oºº
÷
 ּ


^

` Protection from being regulated by government.

o



`Possible retribution from competitors in terms of
legal action.
oºº
÷
 ּ


ÿ




 





* Mergers should be done to prevent

competition from filing suits.
oºº
÷
 ּ


^

` Preserve the economy .
o



`aigh cost of merger
`The cost structure has to be restructured to match
Wal-Mart.
V
 ּ
` Implementation of a hybrid of alternatives 1 and 3
` Divide the company based on the various functional
areas that the company has a presence in.
` Once individual SBU¶s are competing in a particular
market, go in for mergers with competitors to
continue growth trajectory.
` Introduce private labels in consultation with
manufacturers who might have competing brands in
the same market.
ù

V÷

` 3



* Reducing the costs to such a level that they become

a category killer in every segment that they
compete in.
* Achieved by investing in processes such as ³cross-
docking´ wherein inventory is rarely stored in a
single place but is always on the move in the
supply chain.
ù

V÷

` V

 

* Situationoccurs where the private label starts

introducing products that compete in the same
market segment as products that it procures from
other large scale manufacturers.

* Violates partnership/understanding with suppliers.