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Wal Mart
Wal Mart
Wal Mart
Wal Mart
Wal Mart
Wal Mart
Wal Mart
Wal Mart
Wal Mart
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Wal Mart

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Transcript

  • 1. Walmart Always Low Prices …. Always
    Group-D
  • 2. Walmart –Goals and Challenges
    Goals
    110 new stores and sales of $84 Billion in 1994
    Maintain growth momentum of stock prices
    Diversification
    Challenges
    Decreasing comparable stores sales growth
    Sustainability of growth rate and analyst apprehensions
    Partnership and legal issues for international expansion
    Growing pockets descent in local market
  • 3. Walmart – Organizational Effectiveness
    • Always low prices…always
    • 4. Convenience
    • 5. No Regional office
    • 6. 2-step Hub-Spoke n/w
    • 7. Store within a store
    • 8. Small town
    • 9. Inside out expansion
    • 10. Low price and convenience
    • 11. Higher volume and minimize expenses
    Structure
    • Integrated IT systems – Stores, Warehouses and corporate office
    • 12. Retail Link
    • 13. Traiting
    Strategy
    Systems
    Shared Goals
    • Frugality (Trip expense < 1% of purchases)
    • 14. Management style – Know the competition
    • 15. Profit sharing
    • 16. Open door policy
    Style
    Skills
    • Training system
    • 17. Vendor mgmt
    • 18. Supply chain mgmt
    Staff
    • No superstars – Extraordinary success
    • 19. “Yes we can Sam”
    • 20. Incentive system
    • 21. Non-union
  • Supply Chain - Process Flow
    • Wal-Mart’s merchandise replenishment cycle is no more than 48 hrs.
    • 22. Retail Link – real-time point-of-sales (POS) data transmission
    • 23. Cross Docking
  • Operational Effectiveness
    Walmart
    P
    COGS
    OPS
    Competitors
    P
    COGS
    OPS
    COGS
    Operational expense
    Profit margin
    Difference in profit margin
  • 24. Sustainability of the Business Model
    Walmart’s core competitive advantages:
    Supply chain
    Superior information and infrastructure systems
    Operational efficiency
    Deterrent to competition:
    • Size of investment required for competitors to challenge
    • 25. Vendor relationship
    • 26. Superior operating margins and cash flow
    Sustainability of the advantages
    Superior access to resources:
    • Access to resources and customer base
    • 27. National presence and brand
    • 28. Consistently higher investment in Information technology
    Size in targeted markets
    • Economies of Scale
    • 29. Experience and infrastructure set-up
    • 30. Economies of scope
  • Diversification into Food Business
    Key challenges for Food Business:
    • Competition from local and regional players
    • 31. Extremely low margins
    • 32. Food business by nature is skewed towards local suppliers and vendors
    • 33. Existing established players like Kroger's and Meijer
    Walmart’s strength for food business:
    • National brand image of everyday low prices
    • 34. Operational efficiencies and superior margins
    • 35. Added advantages in areas of existing Walmart stores
    • 36. Ability to undercut prices in supercenters by other merchandizes
    • 37. Size and financial strength
  • Assessment - Food Business
    • Based on analysis of challenges and strengths, Walmart should be able to diverse profitably in Food business
    • 38. As per opportunities present in the market, and growing Food business, Walmart should definitely get into Food business
    • 39. Supercenters are key growth driver for Walmart to maintain consistent Share prices
  • Questions?

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