PRESENTED BY:
HARSHA.K
• Founded in 1962 by Sam Walton
• Operates in 28 countries globally
• Ranked top 1 in Forbes and Fortune 500
• Largest market share of total global retail
• Largest global corporation by revenues
OVERVIEW
History
• In 1962, first Walmart store opened in roger’s Ark
• In 1970, Walmart became publicly traded company
• In 1971, the first distribution center and first home office
opened in Bentonville, ark
• In 1972, Walmart was listed on new york stock exchange,
with 51 stores, Walmart recorded sales of 78 million
dollars
• In 1991, first international store in mexico city
• In 2002, topped the fortune 500 ranking of americas
largest company for the first time.
Advertising slogans:
Save Money. Live better
Mission, Vision & Goals
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:
To help people save money so they can
live better
Goal:
Becoming in an international brand
TARGET CUSTOMER
• “Wal-Mart's targeted demographic:
– Modest incomes
– Shoppers interested in prices
WALMART PROVIDES
• General merchandise: family apparel, health
and beauty aids, household need, electronics,
toys, fabrics, crafts, lawn and gardening,
jewelry and shoes
• Pharmacy
• Tire and lube express
• Photo and processing center
WALMART STRATEGIES
• Dominance in the retail market
• Expansion in international markets
• Creation of positive brand
• Branch out into different sectors
• Creation of company recognition through EDLP
INTERNALFACTORSEXTERNALFACTORS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
• Diversity in products & services
• Convenient prices & locations
• Strong market presence
• Customer loyalty
• Strong financial performance
• Cost and pricing advantages over
rivals
• Good supply chain
• Global Expansion: new geographic
areas
• Increasing online sales
• Strategic alliances
Acquiring rival firms
•Low global presence
•.controversies over its
alleged strong-arm tactics
of trying to suppress the
unionization of labor
workforce.
• Intense Competition
• Online stores
• As a global retailers, walmart is
exposed to political problem in the
countries
The Five Forces Model
1. Bargaining Power of
Customers: Low
I. Customers usually make small purchases.
II. A large number of customers.
III. Wal-Mart’s main customers are
individuals.
2. Bargaining Power of Suppliers:
Medium-Low
I. Wal-Mart purchases huge quantities of
products from its suppliers.
II. Low switching costs from one supplier to
another.
III. Products have a lot of substitutes.
IV. Almost all the products are not critical for
Wal-Mart.
The Five Forces Model
3. Potential entrants / Barriers to entry:
Medium-High
I. Economies of scale.
II. High capital requirements.
III. Customers mainly look for products with low prices and
standard quality.
IV. Requires a precise distribution system.
4. Power of Substitutes: low
• 5. Potential Competitors/ Rivalry: High
I. Wal-Mart represents the 25% share of the U.S. Supermarket
business.
II. Competitors have similar sizes.
III. Industry growth is slow.
IV. Exit barriers are high.
V. There is a high production capacity
WAL-MART main competitors:
Retailer:
• Target
• Costco
• carrefour
• K-Mart
RISKS FACED BY COMPANY WHILE
EXPANDING ABROAD
• Management Risk
– Culture, language, customer preferences,
distribution systems.
• High investment
• Political and Economic risks
• Exchange Rates risk
Key Success Factors
• A supply chain with integrated technology
• An ability to generate large sales volume (economies of scale)
• Every Day Low Prices
• Superior logistics systems
• Decentralized operations
• A strong and unique culture (in U.S.)
conclusion
“Think local, act global”
• Walmart being the number one retailer in the
united states ,also operates world-wide and is
moving into new countries every year.
• Each year Walmart finds new ways to grow
and offer more services to their customers.
• Each year ,number of people who have stake
in Walmart also grows.

WALMART - Save money.Live better

  • 1.
  • 2.
    • Founded in1962 by Sam Walton • Operates in 28 countries globally • Ranked top 1 in Forbes and Fortune 500 • Largest market share of total global retail • Largest global corporation by revenues OVERVIEW
  • 3.
    History • In 1962,first Walmart store opened in roger’s Ark • In 1970, Walmart became publicly traded company • In 1971, the first distribution center and first home office opened in Bentonville, ark • In 1972, Walmart was listed on new york stock exchange, with 51 stores, Walmart recorded sales of 78 million dollars • In 1991, first international store in mexico city • In 2002, topped the fortune 500 ranking of americas largest company for the first time.
  • 4.
    Advertising slogans: Save Money.Live better Mission, Vision & Goals 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: To help people save money so they can live better Goal: Becoming in an international brand
  • 5.
    TARGET CUSTOMER • “Wal-Mart'stargeted demographic: – Modest incomes – Shoppers interested in prices
  • 6.
    WALMART PROVIDES • Generalmerchandise: family apparel, health and beauty aids, household need, electronics, toys, fabrics, crafts, lawn and gardening, jewelry and shoes • Pharmacy • Tire and lube express • Photo and processing center
  • 7.
    WALMART STRATEGIES • Dominancein the retail market • Expansion in international markets • Creation of positive brand • Branch out into different sectors • Creation of company recognition through EDLP
  • 8.
    INTERNALFACTORSEXTERNALFACTORS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS •Diversity in products & services • Convenient prices & locations • Strong market presence • Customer loyalty • Strong financial performance • Cost and pricing advantages over rivals • Good supply chain • Global Expansion: new geographic areas • Increasing online sales • Strategic alliances Acquiring rival firms •Low global presence •.controversies over its alleged strong-arm tactics of trying to suppress the unionization of labor workforce. • Intense Competition • Online stores • As a global retailers, walmart is exposed to political problem in the countries
  • 9.
    The Five ForcesModel 1. Bargaining Power of Customers: Low I. Customers usually make small purchases. II. A large number of customers. III. Wal-Mart’s main customers are individuals. 2. Bargaining Power of Suppliers: Medium-Low I. Wal-Mart purchases huge quantities of products from its suppliers. II. Low switching costs from one supplier to another. III. Products have a lot of substitutes. IV. Almost all the products are not critical for Wal-Mart.
  • 10.
    The Five ForcesModel 3. Potential entrants / Barriers to entry: Medium-High I. Economies of scale. II. High capital requirements. III. Customers mainly look for products with low prices and standard quality. IV. Requires a precise distribution system. 4. Power of Substitutes: low
  • 11.
    • 5. PotentialCompetitors/ Rivalry: High I. Wal-Mart represents the 25% share of the U.S. Supermarket business. II. Competitors have similar sizes. III. Industry growth is slow. IV. Exit barriers are high. V. There is a high production capacity WAL-MART main competitors: Retailer: • Target • Costco • carrefour • K-Mart
  • 12.
    RISKS FACED BYCOMPANY WHILE EXPANDING ABROAD • Management Risk – Culture, language, customer preferences, distribution systems. • High investment • Political and Economic risks • Exchange Rates risk
  • 13.
    Key Success Factors •A supply chain with integrated technology • An ability to generate large sales volume (economies of scale) • Every Day Low Prices • Superior logistics systems • Decentralized operations • A strong and unique culture (in U.S.)
  • 14.
  • 15.
    • Walmart beingthe number one retailer in the united states ,also operates world-wide and is moving into new countries every year. • Each year Walmart finds new ways to grow and offer more services to their customers. • Each year ,number of people who have stake in Walmart also grows.