MM ITBK - WalMart Overview - Global Marketing by Noverino Rifai
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MM ITBK - WalMart Overview - Global Marketing by Noverino Rifai

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Overview of the biggest retail company in the world, Walmart.

Overview of the biggest retail company in the world, Walmart.

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  • Prepared discussion material based on Heizer-Render 4 days intensive discussion with business owner Explored the online shop Completed the slides Reviewed by business owner Granted permission for publication Finishing

MM ITBK - WalMart Overview - Global Marketing by Noverino Rifai MM ITBK - WalMart Overview - Global Marketing by Noverino Rifai Presentation Transcript

  • 1 Wal-MartFeaturing... Coached by... Noverino Rifai Dr.Ir.Waseso Segoro, MM To be presented on April,7st 2012 Institut Teknologi dan Bisnis Kalbe (ITBK)
  • Overview of WalMart 2 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Agenda • Background • Store Chains • Mission and Cultures • BCG, SWOT, 5 Forces • Strategy
  • Overview of WalMart Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Walmart Background• 1945 Sam Walton opened the first Ben Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud. ▫ These were small chains that were very successful.• November 1962 Wal-Mart was opened.• Wasn’t until mid 1970’s that Wal-Mart began to grow.• 1972 – Walmart goes public• 1983, the first Sam’s Club members-warehouse store opened.• The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise.• By 1989, there were 1,402 Walmart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion.• Today, 10,130 stores and club locations in 28 countries employ 2.2 million associates, serving more than 176 million customers a year.• We employ 2.1 million associates globally, including almost 1.4 million in the United States. Walmart is one of the largest private employers in the U.S., the largest in Mexico and one of the largest in Canada as well.
  • Overview of WalMart 4 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Who was Sam Walton?• Samuel Moore "Sam" Walton (March 29, 1918 – April 5, 1992) was a businessman and entrepreneur born in Kingfisher, Oklahoma• Worked for JC Penney• Built his first retail store called Five and Dime• Walton was honored for all his pioneering efforts in retail in March 1992, when he received the Presidential Medal of Freedom from President George H. W. Bush• In 1998, Walton was included in Times list of 100 most influential people of the 20th Century• At the University of Arkansas, the Business College (Sam M. Walton College of Business) is named in his honor.
  • Overview of WalMart 5 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com) Store ChainsWal-Mart currently operates 8,900 stores in28 countries, under 55 different namessuch as SEIYU in Japan, Best Price inIndia, Walmex in Mexico and Asda in UK.
  • Overview of WalMart 6 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Worldwide Stores
  • Overview of WalMart 7Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com) Asia Stores
  • Overview of WalMart 8 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Indonesia Stores• Pada 1996, Wal Mart telah hadir di Indonesia. Toko itu diusung ke dalam negeri atas kerja sama PT Multipolar Crop Tbk dengan Wal Mart Stores Inc, AS. Gerai pertama dibuka di Lippo Karawaci, Tangerang.• Wal-Mart (AS), Casino Guichard-Perrachon SA (Prancis), dan Lotte Shopping (Korea Selatan) bersaing memperebutkan unit Hypermart milik PT Matahari Putra Prima Tbk (Bisnis, 1 Desember 2010).
  • Overview of WalMart Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Deloitte Report:Global Power of Retailing 2011
  • Overview of WalMart 10 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com) Fortune 500 - 2011http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/index.html
  • Overview of WalMart 11 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Sales Figure
  • Overview of WalMart 12 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Global Mission
  • Overview of WalMart 13 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Culture• Mr. Sam’s values ▫ We’re known around the world as the company that helps our customers save money so they can live better. We’re also well known for our unique corporate culture. Sam Walton built our business on values and morals. Those rules and customs have helped us become one of the world’s most admired companies.• Respect ▫ At the core of every one of our rules and customs is the basic value of respect – for the customer, associates, and suppliers. It’s our focus for building relationships. It helps us serve the communities in which we live, and build a business committed to excellence.
  • Overview of WalMart 14 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Culture• Open Door: open communication is critical to understanding and meeting our associates’ and our customers’ needs. Associates can trust and rely on the open door;• Sundown Rule: we do our best to answer requests by the close of business on the day we receive them. Whether its a request from a store across the country or a call from down the hall, we do our very best to give each other and our customers same-day service. We do this by combining our efforts and depending upon each other to get things done.• Grass Roots Process: Sam’s philosophy lives on today in Walmart’s Grass Roots Process, our formal way of capturing associates’ ideas, suggestions and concerns.• 3 Basic Beliefs & Values: Our unique culture has helped make Walmart one of the world’s most admired companies. Since Sam Walton opened Walmart in 1962, our culture has rested on three basic beliefs. We live out these beliefs each day in our interactions with our customers and each other. ▫ Respect for the Individual ▫ Service to Our Customers ▫ Striving for Excellence• 10-Foot Rule: During his many store visits, Sam Walton encouraged associates (employees) to take this pledge with him: "I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him."• Servant Leadership: Sam Walton believed that effective leaders do not lead from behind their desks. "Its more important than ever that we develop leaders who are servants, who listen to their partners – their associates – in a way that creates wonderful morale to help the whole team accomplish an overall goal,” Sam said.• Teamwork: Sam Walton, our founder, believed in the power of teamwork. As our stores grow and the pace of modern life quickens, that philosophy of teamwork has only become more important over the years.• Walmart Cheer: Dont be surprised if you hear our associates shouting this enthusiastically at your local Walmart store. Its our cheer, and while it might not sound serious, we take it seriously. Its one way we show pride in our company.
  • Overview of WalMart 15 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Walmart Cheer Give me a W! Give me an A! Give me an L! Give me a squiggly! Give me an M! Give me an A! Give me an R! Give me a T! Whats that spell? Walmart! Whose Walmart is it? Its my Walmart! Whos number one? The customer! Always!
  • Overview of WalMart 16 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Business Flow
  • Overview of WalMart 17 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)BCG
  • Overview of WalMart 18 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)SWOT – Internal Factors• Strengths ▫ Stores in all 50 states ▫ New concepts:  Hypermarkets, supermarkets ▫ Wide variety of merchandise ▫ Nationally advertised merchandise ▫ Limited lines of merchandise – made in USA ▫ Point-of-sale bar code scanning ▫ Great employee benefits• Weaknesses ▫ No formal mission statement ▫ Management resisted putting women on board of directors ▫ Hiring illegal minorities to clean ▫ Growth for employees only in division
  • Overview of WalMart 19 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)SWOT – External Factors• Opportunities ▫ Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc. ▫ Fortune’s number one Most Admired Company and largest company in nation ▫ World’s largest private satellite communication systems ▫ Ron Brown Corporate Leadership Award• Threats ▫ “Buy American” policy ▫ Target ▫ A solution to the monopoly that Wal-Mart has created
  • Overview of WalMart 20 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Threats • Employing illegal aliens and paying them unfair wages • Pending lawsuit involving discrimination against women • People questioning if Wal-Mart is too powerful • Anti-Wal-Mart sentiments ▫ Community campaigns to keep Wal-Mart out of towns • Government complaints ▫ At least 60 government complaints concerning possible Wal-Mart anti- union activities
  • Overview of WalMart 21 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Walmart and Suppliers Walmart appears to be the only business in the world  that is able to treat its suppliers this way…
  • Overview of WalMart 22 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Failed in German• July 2006• Retailing giant Wal-Mart is bidding Auf Wiedersehen to Germany.• The Metro retail chain will take over Wal-Marts 85 German stores. Wal-Mart Germanys CEO David Wild said mistakes were made.• US Model not effective here ▫ High labor costs may have been a big hurdle for Wal-Mart Germany, as well as workers who tried to resist managements demands which they felt were unjust.• Understanding the locals ▫ "Like, did you know that American pillowcases are a different size than German ones are?" he asked. Wal-Mart Germany ended up with a huge pile of pillowcases they couldnt sell to German customers• "We have to take off our hats to Körber and Metro," said Wal-Marts CEO Leo Scott at a retail conference in 2004. "They know how to make money in Germany."
  • Overview of WalMart 23 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)5 Forces of Porter• Low Threat of new entrants: ▫ Large concentration of retail chain stores ▫ Decreasing number of independent retailers ▫ Barriers to entry  Favorable supply contract: centralized buying power  Favorable lease contract  Requires large amounts of capital• Suppliers’ power: limited power to negotiate relatively to large retail chain stores• Buyers’ power: ▫ Individuals with limited purchasing power ▫ collectively, customers can demand high quality products at a bargain price;• Substitute threat: high, products offered in one retail chain are available in others• Rivalry: slow market growth leads to fierce price competition
  • Overview of WalMart 24 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Strategy• selling branded products at low cost• 85 percent of all the merchandise sold by Wal-Mart was shipped through its distribution system to its stores s. (Competitors less than 50 percent)• Wal-Mart used a “saturation” strategy for store expansion. A distribution center was strategically placed so that it could eventually serve 150-200 Wal-Mart stores within a day.• Wal-Mart’s marketing strategy was to guarantee “everyday low prices” as a way to pull in customers.• shared 50 percent of the savings from decreases in a store’s pilferage among that store’s employees through store incentive plans.• Wal-Mart also instituted several other policies and programs for its associates: incentive bonuses, a discount stock purchase plan, promotion from within, pay raises based on performance not seniority, and an open-door policy.• Investing in global eCommerce to reach more customers (walmart.com, asda.com)• demand manufacturers use radio frequency identification technology (RFID)
  • Overview of WalMart 25 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)Walmart Satellite Communication Channel• 1988 ▫ Wal-Mart launches worlds largest private satellite communication system, linking all operating units of the company and the Home Office with two-way voice, data, and one-way video communication.• October 2007 ▫ Wal-Mart announced that it will start re- selling HughesNet satellite broadband Internet access, starting at 700Kbps for $59.99 a month• April 2011 ▫ Walmart announced this morning that it is buying Kosmix, a social media technology provider, in order to expand its social media presence and connect directly with consumers.
  • Overview of WalMart 26 Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)http://www.walmart.com/
  • Overview of WalMart 27Noverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com) http://www.asda.com/ UK Homeshopping
  • Overview of WalMartNoverino Rifai (noverino.rifai@gmail.com, http://noverino.wordpress.com)