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Walmart Stores

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  • 1.  The retail industry is responsible for distribution of finished products to the public. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit.
  • 2.  Emerged in the U.S in the 18th century.  Developed only in those areas that had a population of above 5000.  Of the world’s top 10 retail companies in terms of sale, six are American.  Major retail giants: tesco. ,target, home, Depot and
  • 3. Introductio n To Walton • Born in 1918 • Helped to make financial ends meet for his family. • Graduated in 1940 In Bachelor of economics • On July 2nd, 1945 opened the first franchise in US by name Walton. Walton did not invent retailing. He simply changed the business model and way of doing business to make it a much more profitable venture.
  • 4.  An American multinational retail corporation.  World's second largest public corporation.  Biggest private employer in the world .  Largest retailer in the world.  One of the five largest corporations in the world by sales.  A family-owned business, who own a 48 percent stake in Walmart. Headquarters: Bentonville, Arkansas, United states
  • 5. 1945: first franchise in US by name Walton. These were small chains that were very successful. 1962 : Retail Revolution. 1970 : Walmart goes National. 1980 : A decade of firsts. 1990 : America’s Top retailer. 2000 : New Millennium. 2012 : 50 years of helping customers save money and live better.
  • 6. S. Robson Walton : Chairman of Board of Directors of walmart stores Michael T. Duke : CEO & President William S. Simon EVP, P&CEO Walmart U.S. C. Douglas McMillon EVP, P&CEO Walmart International Rosalind G. Brewer EVP, P&CEO Sam’s Club Neil M. Ashe EVP, P&CEOGlobal eCommerce
  • 7. Operating Divisions  Walmart Stores U.S (4,092 units) • Walmart Discount Stores (539) • Walmart Supercenter (3211) • Walmart Market (316) • Small Format Stores (26)  Walmart International (6242 units)  Sam’s Club (621)  Private Label Brands
  • 8. Walmart U.S Everyday low prices on a broad assortment, anytime, anywhere.  Leveraging a winning formula  Fortifying our low-cost culture  Engaged associates drive customer satisfaction
  • 9. A global portfolio that drives growth and returns  Disciplined growth through new stores and e-commerce  Leading on social and environmental issues
  • 10. Delivering greater value to members  Merchandise that keeps members coming back for more  Innovations that enhance the shopping experience • Scan n Go Program
  • 11. Delivering seamless access to customers – anytime, anywhere  Innovating in more ways • • • • • Social Genome Shoppy cat Voice Product Information Browse My Store  Winning in key markets
  • 12. 3 Basic Beliefs • Service to our customers. • Respect for the individual. • Striving for excellence.  Walmart went to small towns and rural areas which every other retailer ignored.  Walmart knows its competitors and adopts their best practices.  Opened discount stores where they could expand in future.  Technological superiority over their competitors.  Introduced the concept of cross docking.  Promotional strategy of “Everyday Low Prices”.  “ Satisfaction Guaranteed” policy.
  • 13.  Competition Between Rival Companies • Currently, they are three main incumbent companies that exist in the same market as Walmart: Sears, Target, K-Mart. • Walmart often has an absolute cost advantage over other competitors. • Walmart has a mature industry life cycle and thus a tough competition is maintained.  Bargaining Power of Buyers • The individual buyer has quite a minimal power when it comes to Walmart. • Consumer could shop at a competitor who offers comparable products at comparable prices, but the convenience is lost as the convenience. • Walmart has a wide range of customers, but they most target the lower middle class citizens. Because, those are the customers that are seeking the best quality for the lowest price.  Bargaining Power of Suppliers
  • 14. • The high-market share of Walmart doesn’t give a lot of power because by Walmart threatening to switch to a different supplier would create a scare tactic to suppliers. • Another potential risk to suppliers is Walmart could vertically integrate.  Substitute Products • When it comes to this market there are not many substitutes that offer convenience and low pricing. • Performance of substitute products are similar. • Consumer switching costs are low.  Entry Barriers • Entry barriers are relatively high, as Walmart has an outstanding distribution systems, locations, brand name and financial capitals to fend off competitors. • The new entrants will definitely face a stiff competition to enter into the industry which has already some matured players.
  • 15. Walmart and its Monopolistic Structure  Walmart is indeed an oligopoly.  Walmart is a giant monopolist.  Walmart’s incredible size makes the company very powerful.  It has driven smaller retailers out of business.  High Barriers to Entry into the market once Wal-Mart penetrates a market.
  • 16. Product By providing all household items and more under one roof Walmart’s products are quality products. Pricing Walmart has gained their reputation by being a store where customers can expect “Always low prices”. Placement: Walmart will continue to expand in cities everywhere keeping in mind the location so that it is convenient to the majority of their customers. Promotion Walmart staff will continue to keep Walmart customers coming back with their special
  • 17. Our people make the difference  Walmart means opportunity and door to better life.  15,000 - 50,000 job openings at Walmart depending on the time of year.  2.2 million associates globally, including approximately 1.3 million in the U.S.  75% of store management teams started as hourly associates, and they earn between $50,000 and $170,000 per annum— similar to what accountants and even doctors make.  Supporting our Nation's Heroes  Benefits  Building a Diverse Workforce  Women > 57% of U.S. workforce, 27% of corporate officers, 20% of Board of Directors.
  • 18. Strengths Weaknesses  Largest wholesaler in the globe.  Ranked number 1 in 2011 by Fortune 500.  No comparable competitor of such size.  Variety of products.  Gains from low-income customers.  Limited Market Place Space
  • 19. Opportunities  Increasing existence in developing economies.  Increasing market trends impact its income growth. Threats  Increase of employees results in increase in pays and health care expenses.
  • 20. Subjected to political action law suit for gender discrimination. Moderating Increase of supercenters in order to leverage capital assets through a plan which is designed to increase returns and sales in U.S. stores. Consumers in U.S. who want one stop service go to Walmart as their first choice because of the social influence. Technology is among the foremost concerns on the agenda of marketing in Walmart. It mostly relies on the internet and social media for advertising and selling of its product.
  • 21.  No. 1 in generation of onsite solar energy – Solar Energy Industries Association – 2012.  First among retailers and 11th overall in FORTUNE’s Most Admired Companies survey – 2011.  One of the Top Companies for Executive Women – National Association for Female Executives – 2011.  The biggest cash contributor to nonprofit and community organizations in the United States – The Chronicle of Philanthropy – 2011.  One of the World’s Most Innovative Companies – Fast Company Magazine – 2010.
  • 22. Helping our customers and communities live better  Social responsibility  Environmental responsibility  Associate opportunity
  • 23. The Walmart Foundation meets the needs of the underserved by directing charitable giving toward our core areas of focus: Hunger Relief & Healthy Eating, Sustainability, Women’s Economic Empowerment and Career Opportunity. Sep 16, 2013 $5 Million Walmart Foundation Grant Helps Goodwill® Grow Jobs Program For Veterans And Their Families Sep 16, 2013 Walmart Continues Commitment to Local Community with $500,000 Grant to Northwest Arkansas Council Aug 27, 2013 Walmart Foundation Awards Rubicon with $30,000 Grant to Provide Support Services for Residents Seeking Employment
  • 24. Conclusion Sam Walton didn't care much for technology. Wal-Mart’s networks are cutting edge, communicating to every employee in the company from the cashier to the CIO. Strategically outsourcing their technical communication has allowed Wal-Mart to focus on the business itself with efficient mobility and low prices. The biggest move Wal-Mart has made to improve their system intelligence is outsourcing their databases to NCR Corporation bringing their total disk storage to over 7.5 terabyte make it the largest commercial database system in the world.
  • 25. By Sneha Priya Nallam SSIM