Presented To: Resp.

Rashmi Baliyan Mam

Presented By:
Pallavi Panwar, Pawan Kumar, Prakrity Paul, Prashant Kumar, Prem Prakash Singh
Introduction
American Public Corporation
World largest Public Corporation
Largest private employer in the world
Headquarter-Bentonville(USA)
Slogan-Always Low Price
SWOT Analysis
Strength
Strong Brand Name
Strong Financial condition
Economy of Scale
Good Supply Chain
EDLP
Weakness
Complex Strategy
High Turn over Rate
Huge Spain of Control
Lack Of Sustainable Advantage
Presence in only Few country
Opportunity
Rising consumer Demand
Serving New market Segment
Product Diversification
E-commerce
Exploiting New technology
Threats
Slow Market growth
Entry of New Competitors
Growing Bargaining power of Buyer
Increased Competition
New Regulatory requirements
PESTLE Analysis
Political- Domestic market protection, reduced tariffs,
increased incentives and subsidies for export and
imports due to liberalization of trade policy.
Economic- Low labor prices, raw materials availability in
host countries, prices of crude oils, level of economic
development, rates of interest, bank loans,
unemployment rate, level of competition within same
industry.
Socio-Cultural- Sifting consumer confidence to
brands rather than retailers, percentage share of
women in shopping, one-shop mentality, busy life
styles, level of standard of living, impact of
westernization on cultures, local culture, more vacancy
for female and part time workers, increased demand for
organic products.
Technological- Presence of communication system
like internet for electronic shopping, quicker response
to adapt new technology in supply chain(RFID, GPS),
Biometric system's like fingerprint scanning,
development of neural networks, store layouts through
CAD, Central hub and spoke system for distribution
centre's and warehouse.
Legal- Law suits against long hours of work,
discrimination against female workers, violating the
rules of its own policies regarding wage payment,
recruitment, no. of hours of work, local cultures rules
and regulations.
Environmental- Use of papers instead of Polythene,
relying on freshness in terms of quality of products,
More focus on organic products, global green house gas,
alternate fuels, packaging to create zero waste,
Packaging principle- remove, reduce, reuse, renew,
recycle packaging.
To be supplied 100% by
renewable energy
To create zero waste
To sell products that sustain people
and the environment
Walmarts broad sustainability goals
WalNait stanus at the Self
actualization level in
Naslows Bieiaichy of
neeus
Why Wal-Mart Goes To Global
Why was growth so important?
Capital market expectations-continuous sales and profits.
Expectations of its own employees-ESOPS.
Saturated domestic market.
U.S. just 4% of world's population-(rest 96% -already
dented)
Emerging markets-tremendous opportunities.
What were its strengths?
Tremendous buying power-
P&G,Kelloggs,Nestl,Coke,Pfizer,etc
Domestic knowledge bases & competencies.
STEP 1-DECIDING COUNTRY-specifics of the business,
competitive and economic environments
Acquiring
an existing player
(GM,CN,UK,SK,PR,JP)
Starting new stores
on own
Joint Ventures(MX,BZ)
STEP 2-DECIDING STRATEGY
Start Greenfield*
operations .(AG,CH)
SITUATIONAL ANALYSISGOING GLOBAL
Five Force Analysis : Competitors
Wal-mart Strategy
Wal-Marts
strategy and
operations
structure
Enable everyday low price and above average profitability
by procuring , distribution and selling products, when and
where needed at lower cost than any competitor
Operations
strategy
Short response times
Low inventory level
Operation
structure
Fast transportation system
Cross docking
Retail link between wal-mart and suppliers (DSS)
The Walmart Way The Walmart Way
P.O.C.K.E.T.S. P.O.C.K.E.T.S.
Price
Operations
Culture
Key Item Promotion/Product
Expenses
Talent
Service
Global Strategy
Advertising Expenditure :
0.3% Of Sales Rev. Only
By Word-of-mouth, In-store Promos
Brick & Click Retailing Model
Competitive Strategy:
- Pre-emptive Expansion
- Local Retailing Monopoly
Most Convenient Locations
Acquired Or Constructed
Global Buying For Relentless Pressure On Prices
Logistic Efficiency: Speed To Market
Penetration/ Strategy
Divisions of WAL-MART
Neighborhood
Markets
International
Sams Club
Supercenters
Distribution Centers
Neighborhood Markets
Began in 1998
Located in market with Wal-Mart
Supercenters
Average area about 42000 sq. ft.
132 stores in U. S.
Offers customer groceries, pharmaceuticals
& general merchandise.
Provides about 28,000 items to customers.
Neighborhood Markets are used to fill the
gap between Discount Stores and
Supercenters.
International
Wal-Mart's international operations
currently comprise 2980 stores in 14
countries outside U. S.
It accounts for 20% of sales
In U. K. only 42.7% sales of
international division.
Sams Club
Membership-only, cash-and-carry
operations.
Sam's Club is a chain of
warehouse clubs which sell
groceries and general
merchandise, often in large
quantities.
Financial service credit card
program (Discover Card)
available at all clubs.
Annual membership fee is $35;
the Elite Membership is $100.
Elite membership has additional
benefits like automotive service
contracts, roadside assistance,
home improvement, auto
brokering and pharmacy
discounts.
Bulk displays and name brand
merchandise.
supercenter
These are hypermarkets
Avg. size 197000 sq. ft.
Additional discount stores they
have meat and poultry, baked
goods, frozen foods ,dairy
products , sea foods ,garden
related, pet shops, optical
centre, fast food outlets, hair
and nail saloons, local bank
branches ,gasoline etc.
2447 supercenters in U. S. A.
Discount Stores
These are departmental
stores approx avg. size
102000sq. Ft.
They have general
merchandise and selection of
foods
971 discount stores in U.S.
Competitive Assets
DODGER DODGER CONTENDER CONTENDER
DEFENDER DEFENDER EXTENDER EXTENDER
Customized to the core
market
Transferable abroad
Company
responses to
Globalization
factor
HIGH
LOW
Walmarts Global Presence 14 Countries Outside the U.S.
U.S. Units 4,404
International Units 4,434
Total Units 8,838
Canada
325 Units
China
311 Units
United Kingdom
385 Units
Japan
413 Units
India*
5 Units
Mexico
1,664 Units
Brazil
461 Units
Argentina
55 Units
Central America
547 Units
Chile
270 Units
U.S.
4,404 Units
The president and CEO of Wal-Mart Argentina is Ezequiel
Gomez Berard.. In October 2007,the acquisition of three
Auchan stores in Argentina, and as a result, stores in La
Tablada, Quilmes and Avellaneda into Wal-Mart
Supercenters.
Argentina
Began our retail operations in China in 1996 w Wal-Mart
China invested in the hypermarket chain Trust-Mart, which
operates more than 100 retail units.
The president and CEO of Wal-Mart China is Ed-Chan. Our
headquarters are located in Shenzhen.
China
In 1995, Wal-Mart opened two Supercenters and three
Sams Clubs in Brazil. In March 2004, expanded by acquiring
118 Bompreo stores and in December 2005 acquired 140
Sonae stores.The president and CEO of Wal-Mart Brazil is
Marcos Samaha.
Brazil
In 1965, Asquith and Hindells Dairies joined forces to form
Asda. In June 1999, Asda was acquired by Wal-Mart and
has grown into Britains second largest supermarket.
The president and CEO of Asda is Andy Clarke.
United Kingdom
In August 2007, Wal-Mart announced an agreement with
Bharti Enterprises to establish a joint venture, Bharti Wal-
Mart Private Limited, for wholesale cash-and-carry and
back-end supply chain management operations in India.
The president and CEO of Wal-Mart India is Raj Jain.
India
Japan
In May of 2002, Wal-Mart acquired a 6.1 percent stake in
Seiyu. The president and CEO of Seiyu is Steve Dacus.
Canada
Wal-Mart Canada began in 1994 with the acquisition of
the Woolco Canada chain of 122 stores. The president and
CEOof Wal-Mart Canada is David Cheesewright
Chile
Acquired a majority stake in Distribution y Servicio D&S
S.A., Chile's leading food retailer, in January 2009.
In September of 2005, Wal-Mart acquired more than a 33
percent interest in Central American Retail Holding
Company (CARHCO) from the Dutch retailer Royal Ahold
NV.
Costa Rica
VIDEO ON WALMART