WHY WAL-MART D’INT  WOO JAPAN BHARATH B K ANUP  ASHOK  ?
HISTORY OF WALMART <ul><li>1962, SAM WALTON starts WAL-MART </li></ul><ul><li>Wal-Mart Discount City,  Rogers, Arkansas </...
History  <ul><li>Expands outside Arkansas  </li></ul><ul><li>Becomes  Wal-Mart Stores, Inc . in 1969 </li></ul><ul><li>197...
WAL-MART TODAY <ul><li>Operates  6,500 stores in 15 countries  </li></ul><ul><li>Serves more than 176 million customers ar...
SUBSIDIARIES <ul><li>WAL-MART Stores Division U.S. </li></ul><ul><li>WAL-MART Discount Stores </li></ul><ul><li>WAL-MART S...
PRINCIPLES AT WAL-MART <ul><li>Respect the Individual </li></ul><ul><li>Service to Our Customers </li></ul><ul><li>Strive ...
Expansion of WAL-MART  <ul><li>EXPANDS IN 1991 TO SOUTH AMERCIAN COUNTRIES AND EUROPE </li></ul><ul><li>INTIALLY FAILS AT ...
Key to success in MEXICO <ul><li>Sell everything under the sun at a lower price than anyone else.  </li></ul><ul><li>Hurt ...
WHAT WENT WRONG IN GERMANY? <ul><li>Anti American feeling </li></ul><ul><li>High Taxes levied by Authorities </li></ul><ul...
WHAT WENT WRONG IN GERMANY ? <ul><li>STRONG LABOUR UNION </li></ul><ul><li>STOPPED CERTAIN DAILY HABITS LIKE CHANT-OFF BY ...
JAPANESE MARKET <ul><li>THINK OF BIG INVESTMENT IN JAPAN </li></ul><ul><li>BUYS SEIYU, CONTROL OF 38% SHARES </li></ul><ul...
WAL-MART’S ANALYSIS OF JAPAN <ul><li>Younger Japanese spend more time at shopping malls </li></ul><ul><li>Forecasts averag...
COMPETITION IN JAPAN  FOR WAL-MART <ul><li>WHOLESALERS SOLD ONLY TO SELECT SUPPLIERS </li></ul><ul><li>CUT-RATE OUTLETS SU...
WHAT WAL-MART DID… <ul><li>DID NOT CONSIDER THE TRADITIONAL WAY OF SELLING </li></ul><ul><li>CONCENTRATED MORE ON LOWERING...
WHAT WAL-MART DID… <ul><li>OPENS “SUPER CENTER” LARGER THAN THAT IN U.S. </li></ul><ul><li>FAILURE TO ADOPT “CHIRASHI” SYS...
MORE WOES TO WAL-MART <ul><li>DID NOT IMPLEMENT THE EDLP METHOD  </li></ul><ul><li>SELLS WHALE AND DOLPHIN MEAT  </li></ul...
WHAT WAL-MART HAD TO DO <ul><li>REDUCE SACKING OF EMPLOYEES </li></ul><ul><li>EMPLOY TRADITIONAL METHODS </li></ul><ul><li...
STILL WAL-MART HAS A LONG JOURNEY IN JAPAN TO SUCCEED… THANK YOU
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W A L M A R T

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W A L M A R T

  1. 1. WHY WAL-MART D’INT WOO JAPAN BHARATH B K ANUP ASHOK ?
  2. 2. HISTORY OF WALMART <ul><li>1962, SAM WALTON starts WAL-MART </li></ul><ul><li>Wal-Mart Discount City, Rogers, Arkansas </li></ul><ul><li>In 5 years expanded to 24 stores revenue more than 12.6 million in sales </li></ul>
  3. 3. History <ul><li>Expands outside Arkansas </li></ul><ul><li>Becomes Wal-Mart Stores, Inc . in 1969 </li></ul><ul><li>1972, listed in New York Stock Exchange </li></ul><ul><li>Grew rapidly during 80’s and 90’s </li></ul><ul><li>Today, World's second highest-grossing corporation </li></ul>
  4. 4. WAL-MART TODAY <ul><li>Operates 6,500 stores in 15 countries </li></ul><ul><li>Serves more than 176 million customers around the globe </li></ul><ul><li>Employs 1.8 million worldwide </li></ul><ul><li>Health plans insure more than 1 million people </li></ul><ul><li>Saves the average American household more than $2,300 per year </li></ul>
  5. 5. SUBSIDIARIES <ul><li>WAL-MART Stores Division U.S. </li></ul><ul><li>WAL-MART Discount Stores </li></ul><ul><li>WAL-MART Supercenter </li></ul><ul><li>WAL-MART Neighbour Market </li></ul><ul><li>SAM’S CLUB </li></ul>
  6. 6. PRINCIPLES AT WAL-MART <ul><li>Respect the Individual </li></ul><ul><li>Service to Our Customers </li></ul><ul><li>Strive for Excellence </li></ul><ul><li>NEW CONCEPT – Every Day Low Prices (EDLP) </li></ul>
  7. 7. Expansion of WAL-MART <ul><li>EXPANDS IN 1991 TO SOUTH AMERCIAN COUNTRIES AND EUROPE </li></ul><ul><li>INTIALLY FAILS AT MEXICO, SUCCEEDS LATER ON </li></ul><ul><li>JOINT VENTURE WITH CIFRA </li></ul><ul><li>ITS SALES REPRESENT ALMOST 2 PERCENT OF MEXICO'S GROSS DOMESTIC PRODUCT </li></ul><ul><li>CONTROLS ALMOST 30 PERCENT OF ALL SUPERMARKET FOOD SALES </li></ul>
  8. 8. Key to success in MEXICO <ul><li>Sell everything under the sun at a lower price than anyone else. </li></ul><ul><li>Hurt the guy next door. </li></ul><ul><li>Make people come to you, hence making local sellers JOBLESS </li></ul>
  9. 9. WHAT WENT WRONG IN GERMANY? <ul><li>Anti American feeling </li></ul><ul><li>High Taxes levied by Authorities </li></ul><ul><li>Lower Wages </li></ul><ul><li>Inhumane practices that had an outcry in the US itself </li></ul>
  10. 10. WHAT WENT WRONG IN GERMANY ? <ul><li>STRONG LABOUR UNION </li></ul><ul><li>STOPPED CERTAIN DAILY HABITS LIKE CHANT-OFF BY EMPLOYEES </li></ul><ul><li>CLOSED A PARTICULAR UNIT AND SACKED ALL EMPLOYEES OVERNIGHT </li></ul><ul><li>IMPROPER SELECTION OF SHOP AREAS </li></ul>
  11. 11. JAPANESE MARKET <ul><li>THINK OF BIG INVESTMENT IN JAPAN </li></ul><ul><li>BUYS SEIYU, CONTROL OF 38% SHARES </li></ul><ul><li>REPORTS HUGE LOSSES BY YEAR END </li></ul>
  12. 12. WAL-MART’S ANALYSIS OF JAPAN <ul><li>Younger Japanese spend more time at shopping malls </li></ul><ul><li>Forecasts average spending of Japanese as $ 30 </li></ul><ul><li>Estimate Japanese Retail Market at $1.3 trillion </li></ul>
  13. 13. COMPETITION IN JAPAN FOR WAL-MART <ul><li>WHOLESALERS SOLD ONLY TO SELECT SUPPLIERS </li></ul><ul><li>CUT-RATE OUTLETS SUCH AS 100-YEN SHOPS HAVE FLOURISHED </li></ul><ul><li>WAYS TO OVERCOME THE TRADITIONAL “CHIRASHI” SYSTEM </li></ul>
  14. 14. WHAT WAL-MART DID… <ul><li>DID NOT CONSIDER THE TRADITIONAL WAY OF SELLING </li></ul><ul><li>CONCENTRATED MORE ON LOWERING COST OF THE PRODUCT </li></ul><ul><li>SACKS MORE THAN 25% OF FULL TIME EMPLOYEES TO CUT BILLS </li></ul>
  15. 15. WHAT WAL-MART DID… <ul><li>OPENS “SUPER CENTER” LARGER THAN THAT IN U.S. </li></ul><ul><li>FAILURE TO ADOPT “CHIRASHI” SYSTEM OF MARKETING </li></ul><ul><li>CONCENTRATES MORE ON HEAVY DISCOUNTING METHODS WHICH NEVER WENT RIGHT </li></ul><ul><li>ATTRIBUTES LOSS TO LOW SEASONAL SALES AND UNUSUAL WEATHER </li></ul>
  16. 16. MORE WOES TO WAL-MART <ul><li>DID NOT IMPLEMENT THE EDLP METHOD </li></ul><ul><li>SELLS WHALE AND DOLPHIN MEAT </li></ul><ul><li>IS CRITICIZED BY ENVIRONMENTAL AGENCIES </li></ul><ul><li>MOST OF ITS PRODUCTS HAD MORE MERCURY LEVELS THAN REQUIRED </li></ul><ul><li>GLITCHES IN COMPUTER SYSTEM </li></ul><ul><li>HOSTILE GREETING TO OUTSIDE RETAILERS BY LOCALS </li></ul>
  17. 17. WHAT WAL-MART HAD TO DO <ul><li>REDUCE SACKING OF EMPLOYEES </li></ul><ul><li>EMPLOY TRADITIONAL METHODS </li></ul><ul><li>SHOULD HAVE PATRONIZED MULTISTOREY STORES WITH GOOD SERVICE IN CITY CENTERS </li></ul><ul><li>INCREASE THE QUALITY OF GOODS AND SERVICES </li></ul>
  18. 18. STILL WAL-MART HAS A LONG JOURNEY IN JAPAN TO SUCCEED… THANK YOU

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