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Wal Mart Presentation


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Wal-Mart Project on Strengths and Weaknesses

Wal Mart Presentation

  1. 1. David Wyatt David Ramirez Marcy Fimbres Brett Schwemmer “ Save money. Live better.”
  2. 2. Update <ul><li>Financial </li></ul><ul><ul><li>11.7 % increase in revenue over 2006 </li></ul></ul><ul><li>Developments for 2008 </li></ul><ul><ul><li>600 new U.S. and International stores </li></ul></ul><ul><ul><li>300-400 Mini Health Clinics in U.S. stores </li></ul></ul><ul><ul><li>Private label milk “Great Value” Hormone Free </li></ul></ul><ul><ul><li>All food suppliers must have a Global Food Safety Initiative (GSFI) certificate </li></ul></ul><ul><ul><li>Wal-Mart has set up support offices in India for R&D </li></ul></ul>
  3. 3. Update <ul><ul><li>Acquisitions for 2008 </li></ul></ul><ul><ul><ul><li>Purchased remaining shares of Seiyu LTD to gain full control of Japanese retail outlet </li></ul></ul></ul><ul><ul><li>Green Initiatives </li></ul></ul><ul><ul><ul><li>LED lights for parking lots </li></ul></ul></ul><ul><ul><ul><li>Energy efficient lighting in all stores </li></ul></ul></ul><ul><ul><ul><li>Recycled old tires to make landscape mulch </li></ul></ul></ul>
  4. 4. Current Strategy <ul><li>Functional Strategy </li></ul><ul><ul><li>Technological innovation R&D </li></ul></ul><ul><li>Business-Level Strategy </li></ul><ul><ul><li>Low Cost Leadership </li></ul></ul><ul><ul><li>Supply Chain and Market Power </li></ul></ul><ul><li>Transnational Strategy </li></ul><ul><ul><li>Globalization </li></ul></ul><ul><li>Acquisition Strategy </li></ul><ul><li>Green Strategy </li></ul>
  5. 5. U.S. Sales Revenue in 2006 from Annual Reports (in millions)
  6. 6. Main Competitor: Target <ul><li>Target ‘s market position is the upscale discount retail niche </li></ul><ul><li>Target’s products mirror Wal-Mart’s, with the exception being its apparel line </li></ul><ul><li>Target poses a high risk to Wal-Mart stores within the United States </li></ul><ul><li>Projected Strategy : Target intends to lure shoppers into its stores using food and “limited-time-only deals” aimed at younger shoppers </li></ul>
  7. 7. Sun Tzu’s Strengths / Weaknesses Matrix Strengths Weaknesses Target Wal-Mart Strengths Weaknesses
  8. 8. Wal-Mart vs. Target (Quadrant I)
  9. 9. Wal-Mart vs. Target (Quadrant II)
  10. 10. Wal-Mart vs. Target (Quadrant III)
  11. 11. Wal-Mart vs. Target (Quadrant IV)
  12. 12. Recommended Strategy / Tactical Actions <ul><li>Create better relationships with local community businesses to improve growth and reputation </li></ul><ul><ul><li>McNeilly’s 1 st principle: “win all without fighting – capturing your market without destroying it” </li></ul></ul><ul><li>Redeveloping old clothing campaign and generate a new clothing campaign </li></ul><ul><ul><li>McNeilly’s 2 nd principle: “avoid strengths/attack weakness – striking where they least expect it” </li></ul></ul>
  13. 13. Recommended Strategy / Tactical Actions <ul><li>3. Gift Card and Food campaign </li></ul><ul><ul><li>McNeilly’s 3 rd principle: “deception and foreknowledge – maximizing the power of market information” </li></ul></ul><ul><li>4. “Going Green” strategy </li></ul><ul><ul><li>McNeilly’s 5 th principle: “shape your opponent – employing strategy to master the competition </li></ul></ul>
  14. 14. Implementation Plan <ul><li>Community Relations (36 weeks) </li></ul><ul><ul><li>Locate perspective cities and site locations for future Wal-Mart stores (12 weeks) </li></ul></ul><ul><ul><li>Create and operate public relations campaigns in future cities, where Wal-Mart stores will be located (24 weeks) </li></ul></ul><ul><li>Clothing campaign (12 weeks) </li></ul><ul><ul><li>Termination of old campaign (1 week) </li></ul></ul><ul><ul><li>Creation of new clothing campaign (9 weeks) </li></ul></ul><ul><ul><li>New clothing campaign is reviewed (1 week) </li></ul></ul><ul><ul><li>Final approval given for clothing campaign and start of the campaign (1 week) </li></ul></ul>
  15. 15. Implementation Plan <ul><li>Food campaign (36 weeks) </li></ul><ul><ul><li>Creation of gift card and food ad campaign (2 weeks) </li></ul></ul><ul><ul><li>New, weekly low price deals each week featured in a weekly ad mailer (34 weeks) </li></ul></ul><ul><ul><li>Gift card ad campaign begins(34 weeks) </li></ul></ul><ul><li>Green Campaign (36 weeks) </li></ul><ul><ul><li>Continued expansion of experimental “green stores” </li></ul></ul><ul><ul><li>(24 weeks) </li></ul></ul><ul><ul><li>Analysis is done to decide which Wal-Mart stores will “go green” (4 weeks) </li></ul></ul><ul><ul><li>Renovation of stores that are “going green” (8 weeks) </li></ul></ul>
  16. 16. Timeline <ul><li>Start May 1, 2008, beginning of Wal-Mart’s second fiscal quarter. Wal-Mart’s fiscal years started February 1, 2008 and ends January 31, 2009 </li></ul>
  17. 17. Possible Reactions From Target <ul><li>An unpredicted retaliation </li></ul><ul><li>No reaction </li></ul><ul><li>Product reduction in Target stores and an increase in product quality </li></ul><ul><li>Increased focus on customer service for Target shoppers </li></ul><ul><li>Alliance with Cold Stone Creamery </li></ul><ul><li>Continuing its alliance with clothing designers and ad campaign </li></ul>
  18. 19. Questions?