3. 1962- Invented by Sam Walton
1970- Began Trading Stock
1983- First Sam’s Club opened
1988- First Wal-Mart Supercenter opened
1991-1999- International Expansion
2000- Walmart.com Launched
2010-2011- Net Sales Stagnant
3
4.
5. Bargaining Power
Over Suppliers
Frugal Money
Management
Strengths
Brand Recognition
and Global Reach
Global Acquisitions
& Joint Ventures
SWOT Analysis—Internal
Factors
5
6. Weaknesses
Global
company- in
few countries
Lack of
security
measures
Employee
compensation
Standardized
worldwide
approach
Lack of market
research in
other countries
SWOT Analysis—Internal
Factors
6
10. Alternatives
• Pros: Variety of services
and products
• Cons: Limited room in
U.S. markets
• Pros: Growth;
increased
revenues
• Cons: Potential failures
Build New
Supercenters
• Pros: Increased
spending per
customer
• Cons: Isolates “core
customers”
Increase
International
Expansion
Increase
Focus on
Upper
Income
Bracket
Explore New
Store Formats
• Pros: Convenience
• Cons: Lack of
popularity
10
11. Recommendation
1. E-commerce:
• Improvements to mobile app (more user friendly)
• RFID checkout system
2. Build more Wal-Mart Express stores (in the
US):
• Emphasis on groceries and healthy options
• Urban markets
• Potential for expansion into China
3. Continue to improve brand image:
• Appeal to younger demographic (ages 0-20)
• Reusable canvas bag giveaways
• Paper & plastic option
11
12. RFID Check-Out System
Explained
Customer leaves
the store without
waiting in line
Embedded tag
reader calculates
cost of all items in
shopping cart
Bill is sent to the
bank
12
13. Advantages of RFID
Reduces checkout time
Reduces costs
Reduces theft
Sales associates can spend more time
helping customers
Assists with marketing & sales research
13
14. Hire Sourcebits for mobile app development and improvement
• Founded in 2006
• Develop apps for iOS, Android, Blackberry, Symbian, and
WinPhone platforms
• Past clients: GE, Coca-Cola, Intel, Hershey’s
• Cost: $100/hour
• Begin process as soon as possible
Implementation Sector 1
E-commerce
14
15. •
•
•
•
Invest in RFID tags on sales floors
Previous failures with RFID
Begin with high-risk items
After 6 months, move on to lower-risk items
Price of RFID Tags, 2010
Quantity
Average Price Per Tag
10,000
~$0.15
100,000
~$0.12
Implementation Sector 1
E-commerce
15
17. Wal-Mart
Express—similar to
Neighborhood Market concept
Allow for expansion in key urban areas—
Boston, Cambridge, Seattle, San
Francisco, Stamford, Detroit, and NYC
Will allow Wal-Mart to compete with
dollar store chains
Begin process as soon as possible
17
18. Cost Calculation
One Express
Cost of one store is about Cost of one
supercenter ¼ the size of Express store
one
~$23,000,000
$5,750,000
supercenter
18
19. Implementation Sector 2
Expansion
1.
2.
3.
• 2 years after US effort: refocus on China
• Stick with supercenter and hypermarket
models in heavily populated urban areas
• Use Wal-Mart Express model in lesspopulated areas
19
22. Appeal to a
younger
demographic
• Advertise for
annual events
• Reallocate $50
million of last
year’s $2.5
billion to new ad
campaigns
geared toward
target audience
Implementation Sector 3 - Brand Image
(this year)
22
23. Give away reusable
canvas bags for 1 week
Offer paper bag optionAverage bag costs
approximately $0.10
Bags
Average bag costs
$0.10-$0.25 to make
$50,000,000 expense
Wal-Mart has
$7,395,000,000 cash
and cash equivalents
Implementation Sector 3 -Brand Image
(this year)
23
24. 24
Summary
Hire Sourcebits to improve mobile app
Invest in RFID tags on sales floors
Continue Wal-Mart Express
implementation plans
Look to China in 2 years
Appeal to a younger demographic
Bag solutions
24
