Wal-Mart's strategies for 2008 include expanding internationally with 600 new stores and 300-400 health clinics in US stores. It aims to increase revenue by 11.7% over 2006 through acquisitions and green initiatives like LED parking lot lights. Its main competitor, Target, aims to attract younger shoppers through limited-time food deals. The document recommends Wal-Mart improve community relations, redevelop clothing campaigns, launch gift card and food promotions, and expand its "green" strategy to compete with Target. An implementation plan provides timelines to carry out these recommendations from May 2008 through January 2009.

1. David Wyatt David Ramirez Marcy Fimbres Brett Schwemmer “ Save money. Live better.”

2. Update Financial 11.7 % increase in revenue over 2006 Developments for 2008 600 new U.S. and International stores 300-400 Mini Health Clinics in U.S. stores Private label milk “Great Value” Hormone Free All food suppliers must have a Global Food Safety Initiative (GSFI) certificate Wal-Mart has set up support offices in India for R&D

3. Update Acquisitions for 2008 Purchased remaining shares of Seiyu LTD to gain full control of Japanese retail outlet Green Initiatives LED lights for parking lots Energy efficient lighting in all stores Recycled old tires to make landscape mulch

4. Current Strategy Functional Strategy Technological innovation R&D Business-Level Strategy Low Cost Leadership Supply Chain and Market Power Transnational Strategy Globalization Acquisition Strategy Green Strategy

5. U.S. Sales Revenue in 2006 from Annual Reports (in millions)

6. Main Competitor: Target Target ‘s market position is the upscale discount retail niche Target’s products mirror Wal-Mart’s, with the exception being its apparel line Target poses a high risk to Wal-Mart stores within the United States Projected Strategy : Target intends to lure shoppers into its stores using food and “limited-time-only deals” aimed at younger shoppers

7. Sun Tzu’s Strengths / Weaknesses Matrix Strengths Weaknesses Target Wal-Mart Strengths Weaknesses

8. Wal-Mart vs. Target (Quadrant I)

9. Wal-Mart vs. Target (Quadrant II)

10. Wal-Mart vs. Target (Quadrant III)

11. Wal-Mart vs. Target (Quadrant IV)

12. Recommended Strategy / Tactical Actions Create better relationships with local community businesses to improve growth and reputation McNeilly’s 1 st principle: “win all without fighting – capturing your market without destroying it” Redeveloping old clothing campaign and generate a new clothing campaign McNeilly’s 2 nd principle: “avoid strengths/attack weakness – striking where they least expect it”

13. Recommended Strategy / Tactical Actions 3. Gift Card and Food campaign McNeilly’s 3 rd principle: “deception and foreknowledge – maximizing the power of market information” 4. “Going Green” strategy McNeilly’s 5 th principle: “shape your opponent – employing strategy to master the competition

14. Implementation Plan Community Relations (36 weeks) Locate perspective cities and site locations for future Wal-Mart stores (12 weeks) Create and operate public relations campaigns in future cities, where Wal-Mart stores will be located (24 weeks) Clothing campaign (12 weeks) Termination of old campaign (1 week) Creation of new clothing campaign (9 weeks) New clothing campaign is reviewed (1 week) Final approval given for clothing campaign and start of the campaign (1 week)

15. Implementation Plan Food campaign (36 weeks) Creation of gift card and food ad campaign (2 weeks) New, weekly low price deals each week featured in a weekly ad mailer (34 weeks) Gift card ad campaign begins(34 weeks) Green Campaign (36 weeks) Continued expansion of experimental “green stores” (24 weeks) Analysis is done to decide which Wal-Mart stores will “go green” (4 weeks) Renovation of stores that are “going green” (8 weeks)

16. Timeline 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

17. Possible Reactions From Target An unpredicted retaliation No reaction Product reduction in Target stores and an increase in product quality Increased focus on customer service for Target shoppers Alliance with Cold Stone Creamery Continuing its alliance with clothing designers and ad campaign

19. Questions?