Walmart was founded in 1962 in Arkansas by Sam Walton. It is now the largest company in the world by revenue, operating over 11,000 stores across 28 countries. Walmart employs over 2 million people worldwide and had revenue of $485.9 billion in 2017. Its business strategy involves achieving cost leadership through large scale operations and supply chain efficiency while also differentiating itself through its own private label brands. However, Walmart faces challenges from competitors like Amazon and must continue adapting to changes in customer behavior and the retail environment through digital transformation and other initiatives.

2. Origin
1962 in Rogers, Arkansas
Founder
Sam Walton
Numbers of Stores
11695
US Internationally
6306 4574
Number of Countries Wal-Mart operates
28
Numbers of Employees
2.2 Million
Revenue for year 2017
485.9 Billion
Market Capital
262.844 Billion

3. 1962
1970
1990-
1991
2003
1993 2012
Walten Brothers opened
first Walmart in Arkansas
Walmart became public
• 1st Nationalretailer
• International Expansion
Creation of “Great Value”
Largest corporation in the world
50th Anniversary

4. Advertising slogans:
Save Money. Live better
Vision:
“If we work together, we’ll lower the cost of living
for everyone…we’ll give the world an opportunity
to see what it’s like to save and have a better life.
Mission Statement:
Tohelp people save money so they can live better
Goal:
Becoming in an international brand

5. • “Wal-Mart's targeted
demographic:
– Modest incomes
– Shoppers interested in prices
• But the customer base is
changing

7. • Walmart Supercenter:
Walmart Discount stores + Full Service Supermarket. 3,029 in the US.
• Walmart Market: Previously branded as Walmart Neighborhood Market.
199 in the US.
2) Sam’s Club. Buy in large quantities. 611 opened in the US.
1) Walmart Stores
• Walmart Discount Stores: 629 in the US

8. Business-Level Strategy:
Combined Strategy
Walmart combines a Cost-Leadership and
Differentiation strategies because:
I. Allowed to achieve a large scale and and
efficient supply chain.
II. Has its own low-cost brands, like Great Value.
III. A unique cost structure that allows Walmart to establish the
lowest prices and achieve competitive advantage. (best
value/price combination )
IV. Present in many different industries and markets with
efficient distribution channels.
V. Very difficult strategy to imitate by offering a broad quantity of
products at a low price.

9. Adaptation
• To locally customize
processes and services
Locally leveraged
• Shared knowledge
between units.
Worldwide learning
• Advantages of interconnected
economies.

10. SSTRENGTHS
WWEAKNESSES
OOPPORTUNITIES
TTHREATS

11. Globally Recognized
Global Organizational
Size
Cost Efficiency
Efficiency in
Supply Chain

12. • Thin Profit Margin • Easily Copied Strategic Business Model
• E-commerce

13. Economic Expansion of
Developing Countries
Expansion in
Developing Country
Improvement in
Quality Standards

14. • Aggressive Competition [locally]
• Healthy Lifestyle Trend
• Amazon

15. Amazon
Walmart’s everyday low price
pledge has been challenged by
online retailers like Amazon
Poor quality of customer service
Walmart’s service problem appears to be lack of
employee training, But there appears to be
another challenge, more fundamental, for Walmart
management’s failure to connect with customer.
Keep up with changes in the retail environment
The core of what killed Wal-Mart was their slow
reaction to change. They forgot that buyers’
behavior has changed. The business landscape has
also changed rapidly.
ISSUES

16. Failed to perform Internationally: Wal-Mart hasn't been able to
succeed in four major countries (Berfield, 2013),
India: The country required 30% of products to be sourced from small
and medium Indian businesses, which the company called a "critical
stumbling block,"
Russia: Wal-Mart spent six years trying to acquire a local chain, but
ended up closing its Moscow office after failing to do so.
Germany: Germans didn’t like Walmart employees handling their
groceries at the check-out line. Male customers thought the smiling
clerks were flirting. And many Europeans prefer to shop daily at local
markets.
South Korea: Wal-Mart marketed items like electronics, when South
Koreans prefer to spend their money on food and drinks, according to
sources.

17. For decades, Walmart enjoyed a reputation for many things.
Large stores,
Everyday low prices,
Superb logistics,
hard bargaining tactics with small manufacturers.
That's how Walmart turned into the world's largest retailer, with
sales that account for close to 3 percent of the US economy --
and made many early investors rich, including founder Sam
Walton and his heirs. Now they should give priority to resolving
the threat by utilizing investment in going digital.

18. In examining the strategies available to Wal-Mart, one must
consider its current position within the market, as well as the
current trends within the marketplace. Walmart has joined
forces with Google in a partnership that will enable
customers to voice order purchases. That is a major
step for Walmart in their effort to regain leadership in the
very competitive race for e-commerce dominance with
Amazon. Now they should focus on pilot program like
sending products to consumers’ house and strengthen their
e-commerce.

19. • Walmart should keep up the low cost strategy, since it’s their core
business model and gives it leverage over its competitors.
• Walmart should train their employees to provide better service to
customers, and also keep their employees happy as well.
• Add the check points where customer can scan the barcode of the
product to know the price and availability of a product.
• Walmart should research before opening new store in new
international market and should focus on localization, and follow the
CAGE model.
• Try to keep up with the changes of customers’ behavior and try to
meet their expectation, also invest in its web store since people
shop online more now days.