This presentation provides an overview of the retail sector and an analysis of Walmart's business strategies. The global retail market was over $22 trillion in 2014 and is growing. The Indian retail market is expected to reach $1.3 trillion by 2020. Walmart is the largest retailer in the world by revenue, generating $482 billion in 2015. Key to Walmart's success is its low-cost leadership strategy, efficient supply chain management, and ability to undercut competitors' prices. Going forward, opportunities for growth include expanding globally and increasing online sales, while threats include intense competition and potential regulatory issues.

1. PRODUCT MANAGEMENT:-
PRESENTATION ON
Presented By:-
Gaurav Patil
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2. SECTORIAL ANALYSIS
 Worldwide total retail sales were more than $22
Trillion in 2014, which in 2015 reached $24 Trillion
(report from eMarketer.com)
 Estimated 2/3rd of the GDP of USA comes from
retail sector
 76 of the World’s Largest Retailing Company are
US based
www.retailindustry.about.com
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3. SECTORIAL ANALYSIS (INDIA)
 Market size of Indian Retail Industry is $600 billion
in 2015
 Industry is Expected to grow up to $1.3 trillion in
2020
 Super market is increased from 500 in 2006 to
8500 in 2016
 Online Retail is projected to grow to $70 billion by
2020 from $6 billion in 2015
www.IBEF.org
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4. SECTORIAL ANALYSIS (INDIA)
www.IBEF.org
Retail
Grocery
Food &
Beverage
Department
Store
Pharmacy
Book, music
and gifts
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5. WAL-MART
 CEO: C. Douglas Mcmillon
 Founder: Sam Walton
 Founded: July 2, 1962, Roges, Arkansas, US
 Revenue: $482.1 billion (2015)
 Headquarters: Bentonville, Arkansas, US
 Net income: 14.69 billion USD (2015)
 Stock Price: WMT (NYSE) US$ 69.22
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www.wikipedia.com

6. HISTORY OF WAL-MART
 In 1950, Sam walton purchased a store from Luther E.
Harrison in Bentonville
 By 1967, the company grew to 24 stores and had
reached $12.6 million in sales
 The company's first stock split occurred in May 1972 at
a market price of $47
 25th anniversary in 1987
 Wal-Mart was ranked fifth by Fortune magazine on its
Global Most Admired All-Stars list and in 2003 and 2004
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www.wikipedia.com

7. COMPETITORS
 General Merchandise Retailing
 Kmart and Target
 Warehouse club Segment
 Costco
 Super Market Retailing
 Kroger, Albertson’s and Safeway
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8. CORE STRATEGIES
 Low – cost Leadership
 Supplying wide selection of the lowest – cost
general merchandise
 Controlling its cost drivers and relentlessly
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9. WAL-MART'S VALUE CHAIN
 Primary Activities and Costs
 Secondary Activities and Costs
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Supply
Chain
Management
Distribution
Sales &
Marketing
Customer
Service
Profit Margin
Technology and Systems Development
Human Resources Management
General Administration

10. CUSTOMER TARGET
 “Wal-Mart's targeted demographic:
 Modest incomes
 Shoppers interested in prices
 But the customer base is changing
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11. PORTER’S FIVE FORCE MODEL
1.Bargaining Power of Customers: Low
 Customers usually make small purchases.
 A large number of customers.
 Wal-Mart’s main customers are individuals.
2.Bargaining Power of Suppliers: Moderate
 Wal-Mart purchases huge quantities of products from its
suppliers.
 Low switching costs from one supplier to another.
 Products have a lot of substitutes.
 Almost all the products are not critical for Wal-Mart.
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12. PORTER’S FIVE FORCE MODEL
3.Potential entrants / Barriers to entry:
Medium-High
 Economies of scale.
 High capital requirements.
 Customers mainly look for products with low prices and standard
quality.
 Low switching costs among companies for customers.
 Requires a precise distribution system.
4.Power of Substitutes: High
 Prices and quality of substitute products are very competitive.
 Performance of substitute products are similar.
 Consumer switching costs are low.
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13. PORTER’S FIVE FORCE MODEL
5.Potential Competitors/ Rivalry: High
 Wal-Mart represents the 25% share of the U.S. Supermarket
business.
 Competitors have similar sizes.
 Industry growth is slow.
 Exit barriers are high.
 There is a high production capacity
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15. STRENGTH
• Diversity in products & services
• Convenient prices & locations
• Strong market presence
• Customer loyalty
• Strong financial performance
• Cost and pricing advantages over rivals
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16. WEAKNESS
• Brand image-weak reputation
• Low global presence
• Behind rivals in e-commerce
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17. OPPORTUNITIES
• Global Expansion: new geographic areas
• Increasing online sales
• Strategic alliances
• Acquiring rival firms
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18. THREATS
• Intense Competition
• Laws and Regulations
• Trade policy
• Cultural barriers
• Current economy
• Slow market growth
• Transport of distinctive
• Competency 18

19. BACKWARD INTEGRATION
 Backward integration refers to a company
buying or internally producing parts of its
supply chain.
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20. BACKWARD EXPANSION IN WAL-MART
 Acquire McLane company, Texas retail grocery
supplier
 Not dependent on a single supplier
 Investing in suppliers if they need funds
 They learned how manufacturer are performing
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21. DISTRIBUTION CENTERS
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• ECONOMIES OF SCALE
• HUB AND SPOKE MODEL
• CUT OUT THE MIDDLE MAN
• INVENTORY TURNOVER
• HIGH STORE VOLUME

22.  Inbound Logistics
 First users of EDI to communicate with suppliers
 High bargain power
 Operation
 They uniquely operate each store
 Better in store execution than competitors
 Outbound Logistics
 Low Distribution cost
 Marketing & Sales
 Unbeatable Prices
 Service 22
ACTIVITIES

23. WAL-MART’S STRATEGIES
EXECUTION PROCESS
 Use of cutting – edge technology
 Providing superior customer service and striving for
continuous improvement
 Implementing a corporate culture
 Strong management team
 State of the art training resources
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24. TECHNOLOGY
 Retail Link
 Inventory Turnover
 Electronic Data Interchange (EDI)
 Electronic Purchasing order
 Tracking sales
 Information system in communication with vendors
 Identifying low selling item
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25. Thank You …!!!
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