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1. WAL-MART STORES, INC.
SWOT ANALYSIS 2017

2. SLIDE | 2
ABOUT WALMART
Name Wal-Mart Stores, Inc.
Logo
Industries served Retail (discount department stores and warehouse stores)
Geographic areas served Worldwide (11,528 stores in 28 countries)
Headquarters Bentonville, Arkansas, U.S.
Current CEO C. Douglas McMillon
Revenue
US$482.130 billion (2016) decreased 0.7% over US$485.651 billion
(2015)
Profit US$14.694 billion (2016) decreased 10.1% over US$16.182 billion (2015)
Employees 2.3 million (2016)
Main Competitors
Costco Wholesale Corporation, Dollar General Corporation, Dollar Tree,
Inc., Kohl's Corporation, Macy's, Inc., Sears Holdings Corporation, Target
Corporation and many other retailers/wholesale companies

3. Wal-Mart business overview from the company’s financial report:
“Wal-Mart Stores, Inc. helps people around the world save money and live
better – anytime and anywhere – in retail stores, online, and through their
mobile devices. We earn the trust of our customers every day by providing a
broad assortment of quality merchandise and services at everyday low prices
("EDLP"), while fostering a culture that rewards and embraces mutual respect,
integrity and diversity. EDLP is our pricing philosophy under which we price
items at a low price every day so our customers trust that our prices will not
change under frequent promotional activity.”[1]
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“ ”

4. “Our operations comprise three reportable business segments: Walmart U.S.,
Walmart International and Sam's Club. During fiscal 2016, we generated total
revenues of $482 billion, which was primarily comprised of net sales of $479
billion. Walmart U.S. is our largest segment and operates retail stores in various
formats in all 50 states in the U.S., Washington D.C. and Puerto Rico, as well as
its online retail operations, walmart.com.
Walmart International consists of the Company's operations in 27 countries
outside of the U.S. and its operations include numerous formats of retail stores,
wholesale clubs, including Sam's Clubs, restaurants, banks and various retail
websites.
Sam's Club consists of warehouse membership clubs and operates in 48 states
in the U.S. and in Puerto Rico, as well as its online operations,
samsclub.com.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”

5. 1. Being the largest retailer in the world, with unmatched scale of operations
and strong market power over suppliers and competitors
SLIDE | 5
STRENGTHS
S W
O T
Wal-Mart is the
world’s largest
company by
revenue and the
largest retailer in
the world.[2]
Wal-Mart Carrefour Costco Tesco
Revenue
(US$
billions)
482.130 ~113.280 113.666 ~102.684
Locations 11,528 12,296 686 6,902
Countries
served
28 35 9 13
Employees 2.3 million 380,000 205,000 476,000
Retail space
(square feet)
1.149 billion - 98.7million -
Figure 1. Comparison of the top 4 retailers in the world in 2016
Source: The respective companies’ financial reports[1][3][4][5] (Carrefour and Tesco revenues are
rounded up due to revenue translation.)

6. What does ‘being the largest retailer in the world’ mean to Wal-Mart?
• economies of scale;
• efficient and effective use of resources;
• huge gains from implementing best practices;
• experimenting with less risk;
• market power over suppliers and competitors.
SLIDE | 6
STRENGTHS
S W
O T
Wal-Mart’s revenue
reached US$482 billion
in 2016, more than the
Carrefour, Costco, Tesco
and Amazon.com
revenues combined.

7. 1. Overdependence on sales from the U.S. market
SLIDE | 7
WEAKNESSES
S W
O T
In 2016, 74.5%
of all company
revenue and
more than 85%
of its operating
income came
from the U.S.
Walmart U.S.
2016
Net sales 298.378
% share of total
revenue
62.3
% revenue growth 3.6
2015
Net sales 288.049
% share of total
revenue
59.8
% revenue growth 3.1
2014
Net sales 279.406
% share of total
revenue
59.0
% revenue growth 1.8
Figure 5. Wal-Mart’s revenue growth in 2014-2016 (in US$ billions)
Source: Wal-Mart’s financial report 2016[1]

8. 1. The e-commerce market is forecast to reach US$2.5 trillion by 2018, a
projected growth of 89.1% in 4 years
SLIDE | 8
OPPORTUNITIES
S W
O T
Figure 10. Total e-commerce sales worldwide (actual and forecast), 2013-2018
1.077
1.316
1.592
1.888
2.189
2.489
25.9% 22.2% 20.9% 18.6% 16.4% 13.3%
2013 2014 2015 2016 2017 2018
Total E-Commerce Sales (in trillions, US$) Change (%)
Source: eMarketer[22]

9. • Wal-Mart currently
operates in 6 of the 10
largest e-commerce
markets in the world,
including China, the
U.S., the U.K., Japan,
Canada and Brazil.
• The company could
expand its e-commerce
operations in other
countries as well.
SLIDE | 9
OPPORTUNITIES
Countries 2014 2015 2016 2017 2018
1. China 315.75 426.26 562.66 871.79 1,011.28
2. U.S. 264.28 305.65 349.06 442.55 493.89
3. UK 70.39 82.00 93.89 114.64 124.96
4. Japan 62.13 70.83 79.33 96.87 106.07
5. Germany 51.91 63.38 73.46 91.97 99.33
6. France 34.21 38.36 42.62 49.71 53.26
7. South Korea 29.30 33.11 36.76 44.07 47.82
8. Canada 20.98 24.63 28.77 37.61 42.67
9. Russia 15.06 17.47 20.30 26.88 30.91
10. Brazil 13.34 16.28 18.80 23.79 26.17
Figure 11. Top 10 countries ranked by total e-commerce sales worldwide (actual and forecast, 2014-2018 (in US$ billions)
Source: eMarketer[30]
S W
O T

10. 1. Slowing growth of the China, Canada, Brazil, Japan and Chile retail markets
SLIDE | 10
THREATS
S W
O T
2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan
China 14.7 12.2 11.8 10.7 10.2
Canada 0.2 0.9 0.9 - 2
Brazil 7.3 5.9 6.2 0.6 (10.6)
Japan 1.5 (1.1) 4.4 (1.1) (0.1)
Chile 6.8 9.5 6 1.8 3.4
Figure 17. Retail sales growth in China, Canada, Brazil, Japan and Chile in 2010-2015 (in percentages)
Source: Trading Economics [31][32][33][34][35]
Wal-Mart’s foreign retail
markets are becoming
increasingly saturated
each year and their
growth is slowing.

11. 1. Wal-Mart Stores, Inc. (2017). Form 10-K for the fiscal year ended January 31, 2017. Available at: http://d18rn0p25nwr6d.cloudfront.net/CIK-
0000104169/c3013d40-212d-409e-bf30-5e5fd482fc2f.pdf Accessed October 18, 2017
2. Fortune (2017). Global 500. Available at: http://fortune.com/global500/ Accessed October 18, 2017
3. Carrefour (2017). 2016 Financial Information. Available at:
http://www.carrefour.com/sites/default/files/carrefour_press_release_fy_2016_20170309.pdf Accessed October 18, 2017
4. Costco Wholesale (2017). Financial Reports. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-reportsannual Accessed
October 18, 2017
5. Tesco PLC (2017). 2016 Annual Report. Available at: https://www.tescoplc.com/media/264194/annual-report-2016.pdf Accessed October 18,
2017
6. Amazon.com, Inc. (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: http://phx.corporate-
ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual Accessed October 18, 2017
7. Forbes (2017). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed October 18, 2017
8. Boomerang Commerce (2015). Introduction to Price Perception Index (PPI). Available at: http://www.boomerangcommerce.com/ppi-
whitepaper-rboomerang/ Accessed October 18, 2017
9. Lundberg, A. (2002). Wal-Mart: IT Inside the World's Biggest Company. Available at: http://www.cio.com/article/2440726/it-organization/wal-
mart--it-inside-the-world-s-biggest-company.html Accessed October 18, 2017
10. Walmart (2017). History Timeline. Available at: http://corporate.walmart.com/our-story/history/history-timeline Accessed October 18, 2017
11. Alexa.com (2017). The top 500 sites on the web. Available at: http://www.alexa.com/topsites/category/Shopping Accessed October 18, 2017
12. Walmart.com (2017). Quarterly earnings. Available at: http://stock.walmart.com/investors/financial-information/quarterly-results/default.aspx
Accessed October 18, 2017
13. Wal-Mart Stores, Inc. (2017). Annual report 2017. Available at: http://s2.q4cdn.com/056532643/files/doc_financials/2017/Annual/WMT-2017-
AR.pdf Accessed October 18, 2017
SLIDE | 11
SOURCES (1/3)

12. 14. Osterndorf, C. (2015). 10 reasons Walmart is the worst company in America. Available at: http://www.dailydot.com/opinion/walmart-labor-unions-bad-
company/ Accessed October 18, 2017
15. American Customer Satisfaction Index (2017). Available at:
http://www.theacsi.org/index.php?option=com_content&view=article&id=147&catid=&Itemid=212&i=Department+and+Discount+Stores Accessed October
18, 2017
16. eMarketer (2016). Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion This Year. Available at: https://www.emarketer.com/Article/Worldwide-
Retail-Ecommerce-Sales-Will-Reach-1915-Trillion-This-Year/1014369 Accessed October 18, 2017
17. eMarketer (2015). Retail Sales Worldwide Will Top $22 Trillion This Year. Available at: http://www.emarketer.com/Article/Retail-Sales-Worldwide-Will-Top-
22-Trillion-This-Year/1011765 Accessed October 18, 2017
18. YCharts (2017). US Grocery Store Sales. Available at: https://ycharts.com/indicators/grocery_store_sales Accessed October 18, 2017
19. Daniels, J. (2017). Online grocery sales set to surge, grabbing 20 percent of market by 2025. Available at: http://www.cnbc.com/2017/01/30/online-
grocery-sales-set-surge-grabbing-20-percent-of-market-by-2025.html Accessed October 18, 2017
20. YCharts (2017). US E-Commerce Sales as Percent of Retail Sales. Available at:
https://ycharts.com/indicators/ecommerce_sales_as_percent_retail_sales Accessed October 18, 2017
21. Food Marketing Institute and Nielsen (2017). Grocery is the next big retail sector being Re-Shaped by Digital. Available at: http://www.fmi.org/digital-
shopper/?utm_source=fmi-blog-post-link&utm_medium=blog&utm_campaign=DigitalShopper Accessed October 18, 2017
22. Bensinger, G. (2015). Amazon Plans to Add Its Own Line of Food. Available at: http://www.wsj.com/articles/amazon-plans-to-add-its-own-line-of-food-
1432843763 Accessed October 18, 2017
23. Quality Assurance and Food Safety (2016). 2015 Private Label Sales Set Sales Record. Available at: http://www.qualityassurancemag.com/article/2015-
private-label-sales-set-sales-record/ Accessed October 18, 2017
24. Food Institute (2015). Private Label & National Brands: Dialing in on Core Shoppers Together. Available at:
https://www.foodinstitute.com/images/media/iri/TTJan2015.pdf Accessed October 18, 2017
SLIDE | 12
SOURCES (2/3)

13. 25. Progressive Grocer (2013). 1 in 3 Grocery Shoppers Use Mobile Devices in Store: Study. Available at: http://www.progressivegrocer.com/1-3-grocery-
shoppers-use-mobile-devices-store-study Accessed October 18, 2017
26. UPS (2016). UPS Pulse of the Online Shopper. Available at: https://solvers.ups.com/assets/2016_UPS_Pulse_of_the_Online_Shopper.pdf Accessed
October 18, 2017
27. Smith, M. (2016). Retail & Mobile Apps: What Works and Why. Available at: https://www.apptentive.com/blog/2016/09/15/retail-mobile-apps-works/
Accessed October 18, 2017
28. Trading Economics (2017). China Retail Sales YoY. Available at: http://www.tradingeconomics.com/china/retail-sales-annual Accessed October 18, 2017
29. Trading Economics (2017). Brazil Retail Sales YoY. Available at: http://www.tradingeconomics.com/brazil/retail-sales-annual Accessed October 18, 2017
30. Trading Economics (2017). Japan Retail Sales YoY. Available at: http://www.tradingeconomics.com/japan/retail-sales-annual Accessed October 18, 2017
31. Trading Economics (2017). Chile Retail Sales YoY. Available at: http://www.tradingeconomics.com/chile/retail-sales-annual Accessed October 18, 2017
32. Identity Theft Resource Center (2017). Data Breaches Increase 40 Percent in 2016. Available at: http://www.idtheftcenter.org/2016databreaches.html
Accessed October 18, 2017
SLIDE | 13
SOURCES (3/3)

14. SLIDE | 14
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BUY WAL-MART
STORES, INC. SWOT
2017