RETAIL MANAGEMENT CASE STUDY OF WALMART

1. CASE
ANALYSIS OF

2. Made in
America
1985-1992 -
The richest
person in the
world.

3. Introduction
■ An American public corporation that runs a
chain of large discount department stores
and warehouse stores.
■ World’s largest public corporation by
revenue.
■ Third largest utility or commercial employer.
■ Largest grocery retailer in United States.
■ Largest toy seller in the United States.
■ World’s biggest retailer.
■ Arkansas,USA(1962)

4. ■ If Walmart were its own country, it would have the
25th largest GDP in the world or roughly the economic
size of Belgium. (huffingtonpost)
■ 11277 stores worldwide
■ 2.3 million employees- highest employer(private
sector)
■ Electronics Movies and music Home and furniture
Home improvement Clothing Footwear Jewelry Toys
Health and beauty Pet supplies Sporting goods and
fitness AutoPhoto finishing Craft supplies Party
supplies Grocery

5. Wal-Mart at a Glance
■ Revenue: US $50,034 crores(2018)
■ Net Income: US $ 986.2 crores(2018)
■ Total assets: US $ 20,452 crores(2018)
■ Total equity: US $ 7,786.9 crores(2018)
Source:www. wikipedia.org

6. Formats
■ Walmart Supercenter (3,570)
■ Walmart Discount Store (386)
■ Walmart Neighborhood Market (698)
■ Amigo (12)
■ E-Commerce Acquisition/C-stores (70)
■ Walmart.com (online retailer)
■ Walmart pay
■ Walmart-to-walmart

8. Global Strategy:Local
Focus
■ Walmart have inculcated the local tastes and preferences
of the consumers of the countries wherever they are
situated and they donot try to install the American culture
and preferences in their outlets in various countries.

9. Wal-Mart Culture
■ The corporate culture of Wal-Mart is one
of the biggest contributing factors that
makes it one of the world’s most admired
companies.
■ The three guiding principles that is
instilled in Wal-Mart are:
 Respect the Individuals
 Service to Customers
 Strive for Excellence

10. The 10-foot Rule
■ Whenever an employee comes within 10
feet of a customer, the employee greets
the person with a cheerful hello, or simply
makes eye contact, smiles and nods his
or her head.

11. The Sun-Down Rule
■ According to Sam Walton,"why put off until
tomorrow what you can do today." .
■ It means the company answers requests,
whether by the customer (particularly important)
or other vendors or partners by sundown on the
day that they receive them, rather than putting
the requests off until a later time.

12. Saturday Morning Meeting
■ Lets everyone know what the rest of the company is up to.
■ They focus on giving good news, entertaining special
guests and having a good time, it also uses that time to
discuss critique of the business. It reviews what could be
done better and encourages suggestions about correcting
those weaknesses.

13. Walmart Logistics
■ Since the early days of the company ,the ability to move
products from place to place quickly and efficiently has
been a key driver in Walmart's success.
■ Technology,innovation and commitment of the associates
continues to drive Walmart Logistics members to an
outstanding shopping experience,save money and live
better.
■ Walmart Logistics approximately has:
 88,000 associates.
 112 distribution centres.
 51 transportation offices.
 7,200 tractors.
 53,000 trailers.
 8,000 drivers.

14. Foreign Direct Investment
■ Foreign Direct Investment(FDI) is an
investment made by a firm or individual in
one country into business interests located in
another country.
■ FDI takes place when an investor
establishes foreign business operations or
acquires foreign business assets,including
establishing ownership or controlling interest
in a foreign company.

15. WALMART JAPAN
•Entered Japan in 2002
•Joint Venture with one of the largest supermarket
chain in Japan : Seiyu
•Purchased a 6% stake, making Seiyu a Walmart
subsidiary
Japan Retail
•Worlds 2nd largest Retain market with a sales
value of 150 trillion yen
•Japan retail sector attracts throughout Asia
•High quality over low price

16. Challenges in Japan :
■ Small housing and apartment sizes, with
high rent prices means that Japanese
would need to minimize their purchases
■ Several small purchases
■ High Operating Cost
■ Inability to apply Original Supply Chain
model

17. WAL-MART CHINA
■ Wal-Mart entered Chinese market and opened its hypermarket
and Sam's club in Shenzhen in 1996.
■ Operating in china for 23 years with 426 stores,8 dry distribution
and 11 fresh distribution centres in 169 cities with 100000
Associates.
■ Wal-Mart partnership with more than 20000 of suppliers of
china.
■ Wal-Mart directly exports about US $ 9 billion from china every
year.

18. WAL-MART IN CHINA
(CONT.)
■ They believe they have the reason to continue to grow in
china and contribute local economy.
■ Increase procurement and support export of Chinese
products to international market.
■ Increase investment across diverse business operation by
opening new facilities.
■ Introduction of various retail technology experience to
china.

19. WALMART In India
■ Most Lurcrative market due to increasing purchasing
power and the population, highly price sensitive.
■ FDI rules has so far kept its presence limited to just the
cash-and-carry segment. It currently has 21 stores in
India.
■ In 2018, they announced

20. WAL-MART In India(Cont.)
■ The deal between US giant Walmart and Flipkart
1.It is a ticket to enter in e-retail market in India.
2.Boost B2B presence
3.Expand its footprint.
4,Access to global markets.
5.Global access to Flipkart private labels.
6 Google roped as an investor in the deal.
The Walmart has taken 75% stakeholders of Flipkart and 25% is of
Flipkart. Walmart has now in the present scenario made the Flipkart
public and now it is public listed company. According to present scenario
the year 2019 will be critical for e-commerce in India said by many
expertise but the fdi Walmart and Fliplart deal these type of deal will help
india to grow into e-commerce

21. WAL-MART in United
Kingdom
■ Foreign Direct Investments in United Kingdom has crossed 1
Trillion Pounds.
■ They have a competitive advantage over location, as 4 of 10 best
universities are in UK.
■ Corporate Tax Rate In UK has come down from 28% in 2011 to
18% in 2019.
■ Their aim is to bring UK in top of the list of most preferred FDI
countries and increase their investment statistics from 1 trillion
to 1.5 trillion pounds.
■ The small grocery shops in Britain will not be able to survive as
they will not be able to pay the money..  Check this Video