Wal Mart

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Wal Mart

  1. 1. “Wal–mart” ?<br />
  2. 2.
  3. 3. Failure & Recommendation<br />History and development<br />SWOT analysis<br />
  4. 4. History<br />Founed: 1962 in Arkansas, USA<br />Founder: Sam Walton<br />Headquarter: Bentonville, Arkansas, USA<br />Industry: Retail<br />Area served: worldwide<br />Revenue: US $404.16 Billion<br />Employees: 2,100,000<br />
  5. 5.
  6. 6. Development<br />Largest retail store in the United States<br />Largest retail chain all over the world<br />1962: founed<br />1969: incoporated as Walmart Stores<br />1970: traded stocks as a publicly held company<br />1972: listed in Newyork Stock Exchange<br />
  7. 7. Development(cont)<br />1985: owned 882 stores with sales of $8.4 billion and 104,000 Associates<br />1987: owned 1198 stores with sales of $15.9 billion<br />1990: became American No. 1 retailer<br />2000: ranked 5th by FORTUNE magazine in Global Most Admired All-Stars list<br />
  8. 8.
  9. 9.
  10. 10. History and development<br />SWOT analysis<br />
  11. 11. S<br />Strengths<br />
  12. 12. Strengths<br /><ul><li>Wal-Mart has grown substantially over recent years, and has experienced global expansion
  13. 13. The company has a core competence involving its use of information technology to support its international logistics system
  14. 14. A focused strategy is in place for HR Management and Development</li></li></ul><li>
  15. 15. Strengths (cont)<br /> Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. <br />
  16. 16.
  17. 17. S<br />W<br />Strengths<br />Weaknesses<br />
  18. 18. Weaknesses<br /><ul><li> Weak in some areas due to the huge span of control
  19. 19. Sell products across many sectors (clothing, food, stationary…) -> not have the flexibility of its more focused competitors
  20. 20. Present in relatively few countries Worldwide</li></li></ul><li>Weaknesses (cont)<br /><ul><li>Extensive labor relations problems
  21. 21. Community Relations Problems </li></li></ul><li>O<br />S<br />W<br />Strengths<br />Weaknesses<br />Opportunities<br />
  22. 22. Opportunities<br /><ul><li> Take over, merge with, form strategic alliances with other global retailers, focusing on specific markets (Europe or the Greater China Region)
  23. 23. Future business in expanding consumer markets (China and India)
  24. 24. New locations and store types -> exploit market development (from large super centres, to local and mall-based sites)
  25. 25. To continue with its current strategy of large, super centres</li></li></ul><li>O<br />S<br />W<br />T<br />Strengths<br />Weaknesses<br />Threats<br />Opportunities<br />
  26. 26. Threats<br /> Being number one = target of competition, locally and globally<br /> Being global retailer = be exposed to political problems in the countries operate in<br />
  27. 27. Failure & Recommendation<br />History and development<br />SWOT analysis<br />
  28. 28. Failure in Germany<br />Facts<br />
  29. 29. Failure in Germany<br />Facts<br /><ul><li> 1998: presented in German when it took over the Wertkauf and Interspar supermarket chains
  30. 30. Captured 2% of German food sales</li></li></ul><li>
  31. 31.
  32. 32. Failure in Germany<br />Facts (cont)<br /><ul><li> 1998: presented in German when it took over the Wertkauf and Interspar supermarket chains
  33. 33. Captured 2% of German food sale
  34. 34. Lost $200m per year on German operations
  35. 35. 8-2006: Sold 85 hypermarkets to Metro </li></li></ul><li>Failure in Germany<br />Fact<br />Reason<br />
  36. 36. Failure in Germany<br />Reasons<br /><ul><li>Lostin the game of acquisitions
  37. 37. Failed to understand local customers’ tastes
  38. 38. Ignored the local business culture, local buying habits</li></ul> <br />
  39. 39. Failure in Germany<br />Fact<br />Reasons<br />Lessons<br />
  40. 40. Failure in Germany<br />Lessons<br />The biggest companies are not immune to failure <br /><ul><li>Carry out cultural assessment before acquisitions
  41. 41. Maintain ongoing assessment of its own </li></ul> foreign operations<br /><ul><li>Tailor offerings to local market
  42. 42. Appreciate local culture and habits </li></li></ul><li>THANK YOU!<br />

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