Wal Mart

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