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-Presented by

Saloni Garg
Aditi Date
Aditya Verma
Rohit Verma
“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 .

 Customer relationship- Wal-Mart’s key to success is


that it thinks like the customer, give a good value in
product for the customer, sell the customer what he or
she really wants to buy, exceeds the customer’s
expectation and ensures that the customer enjoy
themselves in the process.
Wal-Mart’s customer strategy is to have almost every
aspect of their business centered on its customer
It provides value to customers by offering aggregation of
a wide variety of consumer goods in a single location,
and selling those goods at the lowest prices.
 Supplier relationships- It provides value to its
suppliers by operating as a large, relatively stable,
nearly omnipresent channel for sales of goods, which
provides rapid feedback on unit sales and localized
demand.
 Expansion- The company has expanded rapidly
over the past years. With its three thousand seven
thousand retail chains located in the US. It is difficult
to get to a certain town without locating a Walmart
store.
 Currently, Wal-Mart's has created over 125,000 new
jobs and the operation of over 3,000 international
stores, buying products from 70 countries
SWOT ANALYSIS
STRENGTHS:
powerful retail brand
reputation for value for money, convenience and
a wide range of products all in one store.
Large scale of operations worldwide
One Stop Retail destination
Efficient use of information technology to support
its international logistics system.
Substantial growth
WEAKNESSES:
 Since Wal-Mart sell products across many sectors
(such as clothing, food, or stationary), it may not
have the flexibility of some of its more focused
competitors.
 The company is global, but has had a presence in
relatively few countries worldwide.
 Involvement in numerous legal issues.
 Wal-Mart is the World's largest grocery retailer and
control of its empire, despite its IT advantages, could
leave it weak in some areas due to the huge span of
control.
OPPORTUNITIES:
 To take over, merge with, or form strategic alliances
with other global retailers, focusing on specific
markets such as Europe or the Greater China
Region.
 Wal-Mart have opportunities to exploit market
development, in terms of diversification from large
super centres, to local and mall-based sites.
 Opportunities exist for Wal-Mart to continue with its
current strategy of large, super centres.
 In increasing demand of Online sales
THREATS:
 Intense competition
 Price matching program by Target
 Foreign currency fluctuation
 The cost of producing many consumer products
tends to fall because of lower manufacturing costs.
Manufacturing cost falls due to outsourcing to
low-cost regions of the World.
This leads to price competition, resulting in price
deflation in some areas, thus intense price
competition becomes a threat.
WAL-MART’s GROWTH STRATEGY
At present, the most important goal for Wal-Mart
is to maintain their current net sales growth of
approximately 12 % per year
Expand into international markets that have large
population.
Increasing the overall efficiency of the
organization by reducing operating costs or cost
of goods sold.
CONCLUSION
Wal-Mart’s strategy in all, is to give their
customers everything: a wide assortment of good
quality merchandise, the lowest possible prices,
guaranteed satisfaction with what you buy,
friendly, knowledgeable service, convenient
hours, a pleasant shopping experience.

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