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Walmart
 

Walmart

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    Walmart Walmart Presentation Transcript

    • The New Age of Walmart
    • Did you know?• At Wal-mart, Americans spend $36 million every hour every day• This works out to $20,928 profit every minute!• Wal-Mart is the largest company in the history of the World• 90% of all American live within 15 miles of a Wal- Mart• 92% of everything Wal-Mart sells comes from China
    • Store formats• Discounts stores (2003) • 3,400 locations of 95,000 feet² discounts stores• Supercenters (1998) • 185,000 feet² offering over 100,000 items (30% of groceries) and employing 200-550 employees • Specialty shops (vision centers, photo centers, hair salons, banks...)• Sam’s clubs • Warehouse averaging 135,000 feet² which competed with Costco and BJ’s Warehouse• Looking for expansion in urban locations or neighborhood markets
    • Technology deployment• Strategic use of IT systems is one of Wal-Mart’s operational strength• Started using bar coding and Electronic Data Interchange (EDI) in 1980’s• By 2002, required all suppliers to use Retail Link• E-commerce operations in mid 1990’s
    • Human capital• Known for low pay and heavy reliance on part- time and temporary help• No unions• Harshly criticized internationally because worked with companies that didn’t respect the Wal-Mart guidelines• Considered as “The most admired company in the US” by Fortune
    • Wal-Mart International• International expansion in early 1990’s• By 2004, there were: • Over 3,200 outlets in the US • 900 outlets in the Americas • 350 outlets in Europe • 440 outlets in Asia• Adaptation of store formats depending on space constraints and consumer preferences
    • Wal-Mart International Acquisitions…• Mexico: Acquisition of Mexico’s largest retailer, Cifra• Brazil: Acquisition of Brazil’s leading supermarket chain in Brazil’s northeast region, Bompreco• UK: Acquisition of Britain’s best value food and clothing superstore, ASDA• Japan: Acquisition of Seiyu Partnership…• Germany: Joined forces with the ALDI Group• China: Formed partnership with Charoen Pokphand Group
    • Wal-Mart’s competitors Revenue300250200150100 Revenue 50 0 Wal-Mart Home Depot Target•2004, Sears fusions with Kmart •3,500 stores = 3rd largest retailer in the US after Wal-Mart and Home Depot
    • How could Wal-Mart continue its growth?• Continue its international expansion in the more developed African countries (French-speaking North Africa, South Africa, Gabon…)• Reduce energy costs (fuel usage for transportation)• Develop in other sectors such as photo services, vacation planning, financial services…
    • What are the limits to that growth?• Competition • High competition in low cost retailers (Germany) • If ever a retail company took the same pricing strategy as Wal-Mart, sales will drastically decrease…
    • Did Asia and Europe offer an opportunity for international market dominance? Yes… No…• UK: Second largest retailer • July 2006: Withdrawal after Tesco from Germany due to a highly competitive market• Starts making money in (stores were given away to China Metro) • Indonesia: Impossible to implant due to the Financial crisis • Unsuccessful in Japan
    • How could the company take advantage ofits global reach to propel itself in the years to come• They could concentrate on e commerce • Follow Amazon’s model• Massive advertisement on the internet
    • Wal-Mart in 2010• Biggest retailer in the world • Close to 8,000 shops worldwide in 15 countries • $401 billion of sales • Employing over 2 million people• Environmental measures to increase energy efficiency • Reduce greenhouse gases by 25% in 7 years • Reduce energy store usage by 30% in 3 years