2. wallmart by jeevan

7/30/2019 2. Wallmart by Jeevan

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Company Profile It's the world's biggest retailer and also the

biggest employer with over 2.1 million full-

and part-time workers worldwide Known for its low pricing and wide selection of

goods, Wal-Mart has become the undisputedking of retailing

The company has 10,130 stores worldwideWal-Mart Supercenters include supermarkets

and average 185,000 square feet


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History The first Wal-Mart store opened in 1962 by brothers

Sam and Bud Walton.

By 1964, Wal-Mart had 24 stores with $12 million insales

The company was guided by founder Sam Walton'spassion for customer satisfaction and "Every Day LowPrices."

In 1970, the company opened its first distributioncenter and corporate headquarters in Bentonville, AR,where it is located today. Wal-Mart also went publicthe same year.

In 1983, the first Sam's Club warehouse store

opened.-


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Headquarters

Bentonville, USA


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Mission Statement andPurpose

"We save people money so they can livebetter."

In addition to this mission statement, thecompany looks to its founder, Sam Walton for acompany "purpose":

If we work together, well lower the cost of

living for everyonewell give the world an

opportunity to see what its like to save and

have a better life.


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Products Major Brands Sam's Choice Great Value Equate Mainstays Ol' Roy Dr Thunder Special Kitty

Parent'sChoice

White Stag George

AdditionalBrands Apparel Baby George Faded Glory

No Boundaries Simply Basic

Homliness Better Homes

and Gardens

Canopy Hometrends your zone4

Others @ the Office

Best Occasions Clear American Color Place Douglas EverStart Fire Side Gourmet Gold's Gym Holiday Time Kid Connection Marketside Oak Leaf ONN Ozark Trail Protege ReliOn SuperTechWalmart

Family Mobile World Table


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5 force model Threat of new competition

Threat of substitute productsor services

Bargaining power ofcustomers

Bargaining power of suppliers

Intensity of competitive rivalry


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Threat of new entrants France is a big market experiencing significant

growth in retail industry in recent years. Strongeconomy, stable government, favorable government

policies for foreign investment and well-developedinfrastructure and with introduction of EURO ascommon currency and same international laws,makes France a very attractive place to be in. But at

the same time the entry and exit levels are high andit is getting mature quickly and have low profitmargins.


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Substitute productsAs the retail industry sells products of daily common

use, there are no direct substitutes; the onlysubstitute products that can be threat are the

products from gray market, which can harm thesales of branded products. Department and discountstores also faces stiff competition from specializedretail shops such as garments, electronics etc.


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Suppliers Because of the diverse product range that is

distributed by retailers there are many differentsuppliers. Suppliers include both domestic and

international manufacturers and as the products aremore or less standardized in nature, retailers andwholesalers have low switching costs, the powers ofsupplier are moderate to low.


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Buyers The consumers are now more sophisticated and

mature. As said by Carrefour, they want it now and

they want it with the best service and the best

quality. Consumers enjoy increasing choice ofproducts and increased price competition, and theydemand better and wider choices. They also exertpressure on manufacturers and retailers to give

more relevant product information.


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Competitorso Kmarto Targeto ShopKo

o Meijero Zellerso Harto Real Canadian Superstoreo Giant Tigero Comercial Mexicanao Sorianao Costco

SWOT l i


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SWOT analysis

Financial Strength:Wal-Mart is the world's largest retailer with a turnover of more than$137billion. CEO of Carrefour, Mr. Bernard said that, "but now, to be globalyou need money. Not only to invest in new markets, but to keep up with thecompetition at home.

Computer System:Wal-Mart has one of World's best Retail Link computer systems to keep incheck inventories that have provided it a definite edge over its competitorsover the years.

Culture:Strong work ethics and commitment towards consumers made everyemployee an asset for the company.

Buying power:Wal-Mart enjoys huge economy of scale as it has tremendous buying power,

most of its suppliers are working on international scenario like P&G, therefore,

Strengths

SWOT l i


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SWOT analysis

Liquidity Ratio and Financial Stability RatioDue to recent acquisitions in Germany, South Korea, Canada,expansion of operations in USA and other countries and $ 2 billionshare buyback have resulted in very low quick ratio, also Debt Equity

Ratio is well above the critical level of 1 and is still going up

Weakness

SWOT l i


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SWOT analysis

Hidden Legal Barriers:As the France government have imposed significant legal barriers tocontrol the growth of department stores and hypermarkets to savetraditional small shops and for saving beauty of the environment

caused by sign boards (what are they called).These Trade barrierposes significant treat for Wal-Mart to grow in France

Economic and Political Turbulence in Europe The ongoing economic war between European Union and USA War in Kosovo Political Turbulence in Germany Change in Currency Exchange Rates

Threats

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Strengths Powerful Retail brand, Large scale of operations worldwide

One Stop Retail destination Strategic business programs Efficient working capital management

Weakness Self Cannibalization Involvement in numerous legal issues

Continuous Product Recall Community Relations Problem

Opportunity Global Food Safety Initiative Standard Increasing demand of Online sales Increasing opportunity in Growing economy

Threats Intense competition Price matching program by Target Foreign currency fluctuation

SWOT analysis


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Strategies Strong Distribution, Inventory management system

Differentiated pricing

Cost advantage strategy

IT advantage


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Corporate Strategies

Dominance in Retail Market

Expansion in US and International market

Creation of Positive Brand and CompanyRecognition

Branching into new sectors of retail


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Key Success FactorsAcquisition of McLane Company in year 1990

Diversification in Food and Grocery retailing

Razor thin margin provides Great Value tocustomer

Acquire of PACE club Kmart


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ConclusionWal-Mart must adopt a friendlier corporate attitude

It needs to relax anti-unionization policy

Improve public perception that Wal-Mart can destroycommunities

International expansion should be done with thehelp of Local retailers


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Thank you!

2. wallmart by jeevan

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