13. Wal-Mart’s International Presence in 2005 Country Mode Of Entry Year of Entry JV partner/ Company Acquired No. of Stores Mexico Joint Venture 1991 Cifra 679+ Puerto Rico Wholly owned subsidiary 1993 Wal-Mart Puerto Rico,Inc. 54 Canada Acquisition 1994 Woolco Stores 262 Argentina Greenfield operations 1995 - 11 Brazil Joint Venture 1995 Lojas Americans’ 149 China Joint Venture 1996 Shenzhen international Credit Investment Company 45+
14. Cont…. Country Mode Of Entry Year of Entry JV Partner/ Company Acquired No. of Stores Germany Acquisition 1997 Wertkauf and Interspar 91 South Korea Acquisition 1998 Makro Stores 16 United Kingdom Acquisition 2000 Asda 282 Total - - - 1587
15. Wal-Mart’s Division Wise Operating Results 2005 2004 2003 Division Net sales ($ mn) % of Total % Increase Net sales ($ mn) % of Total % increase- Net sales ($ mn) % of Total Wal-Mart’s stores 191,826 67.3 10.1 174,220 68.0 10.9 157,120 68.4 SAM’s Club 37,119 13.0 7.5 34,537 13.5 8.9 31,702 13.8 Internati-onal 56,277 19.7 18.3 47,572 18.5 16.6 40,794 17.8 Total net sales 285,222 100 11.3 256,329 100 11.6 229,616 100
16. Operating Income from International Operations Fiscal year Operating Income (in $ million) 2005 2,998 2004 2,370 2003 1,998
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19. List of honors received by Wal-Mart in China Prize- winning Company/store year Honorary Title Award- giving Official Unit 1998 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau Lakeview Wal-Mart Supercenter (shenzhen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau
20. Cont……. Prize- winning Company/store year Honorary Title Award- giving Official Unit Zhongshon Wal-Mart Supercentre (shenzen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB
25. Wal-Mart’s golden strategy was not fully successful . Transportation cost for wal-mart in china was high due to long distances. In 2003, Wal-Mart’s distribution center opened in “Tianjin” was not utilized properly. Suppliers were unhappy with the company’s sudden price reduction practice.
29. Wal-Mart entered china in 1994 First store in 1996 at Shenzhen In a year sales touched $120.8 million April 2001 9 stores with investment of $108.7 million 2004 Wal-Mart invested 1.6 billion RMB in china and established 45 stores 1 3 9 16 22 25 1999 2003 2004
36. Expansion in Asian Markets Expected Surge in Global sales-20 % India’s Entry Strategy- Joint venture with Bharti Enterprises
37. Home World Group Statement made by Du Sha Owner Home World Group In any country you go to the world, it’s a local company which that leads the industry such as Walmart in the U.S. and Carrefour in France. In China it won’t be different.
