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“The secret of successful retailing is to
give customers what they want”
SAM WALTON
INTRODUCTION
Wal-Mart Store was founded by Sam Walton in 1962, in
Rogers, Arkansas, USA.
It is an American public corporation that runs a chain of
large discount department stores and a chain of
membership required warehouse stores.
The company was incorporated as Wal-Mart Stores, Inc.
on October 31, 1969.
It began trading stock as a publicly held company on
October 1, 1970, and was soon listed on the New York
Stock Exchange.
In 2010, according to the Forbes Global 2000, it was the
world's largest public corporation by revenue for that
year.
Wal-Mart's operations are organized into three divisions:
Wal-Mart Stores U.S., Sam's Club, and
Wal-Mart Stores U.S. is Wal-Mart's largest division and
consists of three retail formats: Discount Stores,
Supercenters, and Neighborhood Markets.
Sam's Club is a chain of warehouse clubs which sell
groceries and general merchandise.
Wal-Mart's international operations currently comprise
4,081 stores and 664,000 workers in 14 countries
outside the United States.
It operates in Mexico as Walmex, in the United Kingdom
as Asda ("Asda Wal-Mart" in some branches), in Japan
as Seiyu, and in India as Best Price. It has wholly-owned
operations in Argentina, Brazil, Canada, United
Kingdom, South America and China.
Walmart Strategic business goals and
objectives
Walmart has always aimed at increasing sales
through its friendly prices
To have a variety of items under one roof
To satisfy the needs and wants of the customers
To provide low prices and superior customer
service
To ensures their growth rate does not stagnate
To always look for ways of sustaining the
competitive advantage.
3 Basics beliefs of the Company:-
Respect for the Individual
Service to the Customer
Striving for Excellence
Salient Features:-
Strong Distribution,
Inventory Management System
Differentiated Pricing
Cost Advantage
Information Technology
MARKETING STRATEGIES
Wal-Mart's marketing strategies are based upon a set of two main
objectives:-
The customer is featured in the first objective; "Customers would be
provided what they want, when they want it, all at a value".
Team spirit was featured in the second objective, "Treating each
other as we would hope to be treated acknowledging our total
dependency on our associate - partners to sustain our success".
Wal-Mart operates each store, from the products it stocks, to the
front-end equipment that helps speed checkout, with the same
philosophy of providing low prices, which also eliminates the
expense of frequent sales promotions and sales are more
predictable.
With the cross-dock system, goods are continuously delivered to
stores within 48 hours and often without having to inventory them.
Contd…
Over sixty percent of Wal-Mart sells came from the
middle income families
The use of customer data has allowed for an
increase in segmentation in order to better server the
customer
The use of radio frequency id tags and electronic
check conversion has improved inventory
management and reduced cost
Promotional strategy implementation has seen
continued lowered cost and delivery of products and
services with minimal difficulty or inconvenience
Competencies
Cost Leadership Strategy - provide a wide variety of
high quality, branded and unbranded products at the
lowest possible price
Aggressive pricing- Wal Mart’s efforts to procure
products at the lowest prices possible from
manufacturers.
Wal-Mart's products are usually priced 20% lower than
those of its competitors .
It generates more profits due to larger volumes. And
the surplus generated is reinvested in building
facilities(modern equipment, latest technology) of an
efficient scale .
Wal-Mart imposes a strict control on its overhead costs.
Distribution technology- Wal-Mart established a
network of innovative hubs which used cross-docking to
minimize distribution center inventory and to facilitate the
need-based inventory delivery system enabled by the
satellite network. It has enabled Wal-Mart to achieve
economies of scale which reduce its costs of sales, and
also goods are continuously delivered to stores .