Project 2: Corporate Research

Walmart in IrelandAlexander KhambirDarina Pchelnikova

Ernestas Svoba Jibek Nurdin

WALMART:

• Founded: in 1962 by Sam Walter. Now the family own 40% of stock

• Mission statement: Saving people money so they can live better

• Slogan :Save money, live better

• 4 Values: Service to customers, Respect for the individual, Strive for excellence, Acting with integrity

BUSINESS OVERVIEW:

• Segments: Walmart U.S., Walmart International, and Sam's Club

BUSINESS OVERVIEW:

BUSINESS OVERVIEW:

CUSTOMER PROFILE:

• Age: from 14 to 80 years old• Income: 3 target groups

- with income less than €10,000 per year- middle group: with income from minimum wage €16,000 to €35,000 per year- wealthier customers with income from €35,000 to €50,000 per year

• Gender: both masculine and feminine genders• Marital status: married• Parental status: most likely has at least one child• Professional habits: low-skilled job which do not require

high level of education

CUSTOMER NEEDS:

• Buying habits: high volumes preferably each week• Interests: leisure activities in free time like movies,

reading books, etc.; spending time with the family; house renovations and landscaping, etc.

• Lifestyle: try to acquire the same privileges as middle class; tend to socialise with their families and friends, show interest in politics, and actively participate in life of their children.

KEY DIFFERENTIATION ADVANTAGES:

• distribution capabilities (inventory management system)

• costs saving strategy (“every day low prices”) • partnership with suppliers and contractors (big

power over suppliers)• advantage of experience of market entry in other

countries

MACRO-ENVIRONMENT POLITICAL FACTORS:

• Taxation and inflation

• Safety regulations

• Political stability

• Legal working requirements

• Price regulations

• Trade policies

ECONOMIC FACTORS:

• Economic transformation from an agriculture focused economy to a knowledge economy.

• Unemployment 11.9%

• Gross National Income on average $41,140

• Currency is Euro

SOCIAL FACTORS:• Languages: English and Irish Gaeilge• International associations:

United Nations Organization for Security and Cooperation in

Europe UNICEF

• Free education: primary, secondary, third level education

• Religion – Roman Catholic 86%• Demographics: majority of people are between 45 –

65 years old

TECHNOLOGICAL FACTORS:

• Great infrastructure level

• Technological country, however agriculture still plays an important role in the Irish economy

• Businesses focuses more on technological applications

• 77% of Ireland’s population was using the Internet

ENVIRONMENTAL FACTORS:

• Waste management

• Companies are required to acknowledge Social Responsibility

• Climate change

LEGAL FACTORS:

• Restrictive practices (Groceries Order)

• Many retail associations opposed the restrictive (Groceries Order)

• Health and safety regulations

• Environmental laws

COMPETITOR’S ASSESSMENT:

• Aldi (7.4% market

share)

• Dunnes Stores (22.1%)

• Tesco Ireland (26.2%)

Arnotts Musgrave Group

BWG Foods Penneys

Dunnes Stores Tesco Ireland

Aldi Lidl

SUPPLIERS’ ASSESSMNET:

• The power of suppliers diminishes near major retailers

• The ability to source cheap products abroad gives the retailers' a huge advantage

• Potential for backward vertical integration

BARRIERS:

• Economy of scale

• Limit pricing

• Loyalty schemes

• Distributor agreements

• Set up costs

• Positioning

RETAILERS:

• Low possibility of alliance

• Local management team and workforce

• Building vs buying stores

• Expectations:

• Short run Survive

• Medium run Penetration

• Long run Leadership

CONCLUSION:

• Time question of entering

• Waiting consumers

• Well developed country

• No impossible barrier

• Enough strength to compete

THANK YOU!