introduction of walmart

7/28/2019 Introduction of Walmart

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Group Members

Huma Fatima

Saad Mahmood

Mudassar Shahzad

Nouman Saeed

Group Members


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Introduction of Walmart

The company was founded by Sam Walton in1962

headquartered inBentonville

stores were started in the small towns

an everyday low price discount retail store

serves customers and members more than 200 million

times per week at more than 8,700 retail units under

59 different banners in 15 countries.
http://en.wikipedia.org/wiki/Bentonville,_Arkansashttp://en.wikipedia.org/wiki/Bentonville,_Arkansas


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Different Logos Of Walmart


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Complete Global Operations

Mexico- 1,664 stores

Brazil- 461 stores

Japan- 413 stores

United Kingdom- 385 stores

Canada - 323 stores

China- 311 stores

Chile- 270 stores

Costa Rica- 179 stores

Guatemala- 175 stores

El Salvador- 78 stores

Nicaragua- 59 stores

Honduras- 56 stores

Argentina- 55 stores

India- 5 stores


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Cont.

It is undertaking several initiatives to increase its footprint

globally.

It acquired Massmart Holdings to build its presence in Africa,

and has a joint venture with Bharti Enterprises to operate in

India.

Wal-Mart plans to establish a strong presence in Chinas e-

commerce market.

In 2011, it bought a majority stake in Yihaodian, a fast-growing

online retailer of groceries, consumer electronics and apparels

successfully implemented its everyday low pricing strategy inBrazil.


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Companys global marketing

Transnational Model/ Strategy

Offering a broad assortment with even lower

price

Meeting local needs and leveraging global

resources


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Cont.

Transnational Model/ Strategy

National responsiveness, international operations and

learning

Through this approach the company wants to become

best low cost goods provider not only in USA, butglobally.


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Cont..

Offering a broad assortment with even lower price

A broader assortment

Delivering Everyday Low Price (EDLP)

A more efficient organization


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Cont

Meeting local needs and leveraging global resources

Meeting local needs

Powered by Walmart is the cornerstone of how we

maximize value by balancing global leverage

Be first in e-commerce solutions.


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Environmental Challenges

They had these following challenges regarding environment

To be supplied 100 percent by renewable energy

To create zero waste

To sell products that sustain people and the environment

Walmart effectively handle these environmental challenges as

In the U.S., Walmart redirected 81 percent of waste in California.

Plastic bag waste was reduced by 47.95 million pounds, or approximately

3.5 billion bags, globally.

Walmart de Mxico reduced water use by 17 percent compared to 2008

baseline.

We reduced our customer returns on defective merchandise to 1.76 percent

globally.


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Mission Vision & Objectives

Mission

"We save people money so they can live better."

Vision

Global Expansion


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ContObjectives (Short Range)

To have 90% of the customers leave the store satisfiedwith their experience at the store.

Objectives (Long Range)

To be the world's largest low cost store that carries all typesof merchandise for all possible consumers

To maintain strong customer loyalty

To increase the amount and type of stores internationally, as

it is in the United States.


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Philosophies on global marketing

Sam Walton's "Always Low Prices"

philosophy and unrivaled retailers who striveto make the customer No. 1.

There is only one boss The customer Andhe can fire everybody in the company from

the chairman on down, simply by spending

his money somewhere else.


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Cont. Save Money. Live Better

Win. Play. Show

Fast, Friendly and Clean


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Production Facilities

85% merchandise shipped through its distribution

center

Distribution center placed strategically

Each distribution center operated 24 hours a day

company owned a fleet of more than 3,000 trucksand 12,000 trailers.

satellite network system


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Standardized and localized stores

90% of its international stores operate under a differentbanner than Walmart

Mexico as WalmexUK as Asda

Japan as Seiyu

India as bharti walmart

prefers to be not known by its brand name until it's not in

100% control and appearance.


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What is standardized and what is localized in

stores

Marketing Strategies

Culture and global sourcing


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Number of Product Categories and number of brands within

each category

Major Brands

Sam's Choice

Great Value

Equate

Mainstays

Ol' Roy

Dr Thunder

Special Kitty

Parent's Choice

White Stag

George


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Cont.

Additional brands

Apparel

Homeliness

Former brands


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Environmental Concerns

Political factor

Economic factor

Social factor

Technological factor


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R& D

Relying on its own search engine called Polaris to

help guide shoppers to the right products.

Polaris will get rolled out to Walmarts

international sites over the next few months andwill also power its mobile apps.

That helps Walmart display more relevant resultswhich can lead to increased sales. And it helps

Walmart tailor its search experience to its users

instead of relying on a generic third-party search

engine.


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Organization

Wal-Mart follows a Divisional Organization

Structure at the top level and a matrixorganizational structure at the store level.

The key divisions areWalmart Market

Walmart International

Walmart discounted stores

Sam's Clubs and Super-centers


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Cont.

Reason for market divisional structure

Each Wal-Mart store has the same job categories

Each store has several Assistant Managers, varying with the

size of the store.

The next level is Co-Manager, a position used only in larger

stores.

The top store position is Store Manager/General Manager in

Sam's Clubs

The stores contain 40-50 different departments


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SWOT Analysis of Walmart

Strengths

State-of-the-art information system gives edge to the Walmart(R&D)

Global 500 and Fortunes 500 Lists

worlds largest retailer

and also the worlds largest private employer

In the U.S it is the biggest grocery retailer

"Sustainability Index

superior and stable in all aspects

C t


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Cont.

Weaknesses

sales drop in United States

Unsuccessful ventures in South Korea and Germany

In 2006 Walmart withdraw its operation from Germany

In the past, it has been criticized of paying below minimum wage

In Germany its corporate culture was viewed negatively among

customers and employees.


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Cont.

Opportunities

Can pursue global opportunities I.e. in Asia and

Middle East

Can open new stores in low-income regions, wherethere are no supermarkets

Through R&D advancement, they can gain edge overcompetiters.

C


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Cont.

Threats

Since 1962 Kmart has battle for market

dominance with Walmart

Walmart is getting tough competition from its

primary competitors includes Target, Meijer,

Kmart and ShopKo.

Gender discrimination


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CSRTheir focus

Hunger Relief & Healthy Eating

Environmental Sustainability

Women's Economic Empowerment

Walmarts Live Better initiatives are making a difference

Donation to nonprofit organization

We believe in a philosophy of operating globally and giving backlocally. And Walmart and Sam's Club associates are active membersof their local communitiesgetting involved with the charitableorganizations that matter most to them and their families.


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Criticism

With close to 2.2 million employeesworldwide, Walmart has faced a torrent of lawsuitsand issues with regards to its workforce. These

issues involve low wages, poor workingconditions, inadequate health care, as well as issuesinvolving the company's strong anti-union policies.Critics point to Waymart's high turnover rate asevidence of an unhappy workforce, although otherfactors may be involved. Approximately 70% of itsemployees leave within the first year

introduction of walmart

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