The New Age of   Walmart
Did you know?• At Wal-mart, Americans spend $36 million every  hour every day• This works out to $20,928 profit every minu...
Store formats•   Discounts stores (2003)    • 3,400 locations of 95,000 feet² discounts stores•   Supercenters (1998)    •...
Technology deployment• Strategic use of IT systems is one of Wal-Mart’s  operational strength• Started using bar coding an...
Human capital• Known for low pay and heavy reliance on part-  time and temporary help• No unions• Harshly criticized inter...
Wal-Mart International• International expansion in early 1990’s• By 2004, there were:  •   Over 3,200 outlets in the US  •...
Wal-Mart International                       Acquisitions…• Mexico: Acquisition of Mexico’s largest retailer, Cifra• Brazi...
Wal-Mart’s competitors                      Revenue300250200150100                                               Revenue 5...
How could Wal-Mart continue        its growth?• Continue its international expansion in the more  developed African countr...
What are the limits to that           growth?• Competition  • High competition in low cost retailers (Germany)   • If ever...
Did Asia and Europe offer an  opportunity for international market             dominance?          Yes…                   ...
How could the company take advantage ofits global reach to propel itself in the years                   to come• They coul...
Wal-Mart in 2010• Biggest retailer in the world  • Close to 8,000 shops worldwide in 15 countries  • $401 billion of sales...
Upcoming SlideShare
Loading in …5
×

Walmart

1,532 views

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,532
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
42
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Walmart

  1. 1. The New Age of Walmart
  2. 2. Did you know?• At Wal-mart, Americans spend $36 million every hour every day• This works out to $20,928 profit every minute!• Wal-Mart is the largest company in the history of the World• 90% of all American live within 15 miles of a Wal- Mart• 92% of everything Wal-Mart sells comes from China
  3. 3. Store formats• Discounts stores (2003) • 3,400 locations of 95,000 feet² discounts stores• Supercenters (1998) • 185,000 feet² offering over 100,000 items (30% of groceries) and employing 200-550 employees • Specialty shops (vision centers, photo centers, hair salons, banks...)• Sam’s clubs • Warehouse averaging 135,000 feet² which competed with Costco and BJ’s Warehouse• Looking for expansion in urban locations or neighborhood markets
  4. 4. Technology deployment• Strategic use of IT systems is one of Wal-Mart’s operational strength• Started using bar coding and Electronic Data Interchange (EDI) in 1980’s• By 2002, required all suppliers to use Retail Link• E-commerce operations in mid 1990’s
  5. 5. Human capital• Known for low pay and heavy reliance on part- time and temporary help• No unions• Harshly criticized internationally because worked with companies that didn’t respect the Wal-Mart guidelines• Considered as “The most admired company in the US” by Fortune
  6. 6. Wal-Mart International• International expansion in early 1990’s• By 2004, there were: • Over 3,200 outlets in the US • 900 outlets in the Americas • 350 outlets in Europe • 440 outlets in Asia• Adaptation of store formats depending on space constraints and consumer preferences
  7. 7. Wal-Mart International Acquisitions…• Mexico: Acquisition of Mexico’s largest retailer, Cifra• Brazil: Acquisition of Brazil’s leading supermarket chain in Brazil’s northeast region, Bompreco• UK: Acquisition of Britain’s best value food and clothing superstore, ASDA• Japan: Acquisition of Seiyu Partnership…• Germany: Joined forces with the ALDI Group• China: Formed partnership with Charoen Pokphand Group
  8. 8. Wal-Mart’s competitors Revenue300250200150100 Revenue 50 0 Wal-Mart Home Depot Target•2004, Sears fusions with Kmart •3,500 stores = 3rd largest retailer in the US after Wal-Mart and Home Depot
  9. 9. How could Wal-Mart continue its growth?• Continue its international expansion in the more developed African countries (French-speaking North Africa, South Africa, Gabon…)• Reduce energy costs (fuel usage for transportation)• Develop in other sectors such as photo services, vacation planning, financial services…
  10. 10. What are the limits to that growth?• Competition • High competition in low cost retailers (Germany) • If ever a retail company took the same pricing strategy as Wal-Mart, sales will drastically decrease…
  11. 11. Did Asia and Europe offer an opportunity for international market dominance? Yes… No…• UK: Second largest retailer • July 2006: Withdrawal after Tesco from Germany due to a highly competitive market• Starts making money in (stores were given away to China Metro) • Indonesia: Impossible to implant due to the Financial crisis • Unsuccessful in Japan
  12. 12. How could the company take advantage ofits global reach to propel itself in the years to come• They could concentrate on e commerce • Follow Amazon’s model• Massive advertisement on the internet
  13. 13. Wal-Mart in 2010• Biggest retailer in the world • Close to 8,000 shops worldwide in 15 countries • $401 billion of sales • Employing over 2 million people• Environmental measures to increase energy efficiency • Reduce greenhouse gases by 25% in 7 years • Reduce energy store usage by 30% in 3 years

×