Wal-Mart – Competing in the Global Market (SWOT analysis)

Wal-Mart – Competing in the Global Market

Presented By: Batch 17th •Nishant Gaikwad (16)•Yogesh Kende (20)

CONTENTS

1. Introduction2. Key Statistic on Wal-Mart3. Products4. Global setup of Wal– Mart5. Wal-mart entry in India 6. Wal-mart Operation7. Marketing strategies adopted by Wal- Mart 8. SWOT analysis

Introduction

• Largest Retail Store in the United States.• Dominant Retail store in Canada, Mexico, and United Kingdom.• Largest Retail Chain in the world.• No.1 rank in Forbes 2010.• No.1 rank in total sales and most powerful corporation in the world.• No. 1 Retailer in various other countries.• 8,446 stores and club locations in 15 countries employ more than 2.1

million associates, serving more than 176 million customers a year.

Source : http://www.walmart.com

Key Statistics on Wal-Mart

• Founder Sam Walson & Family – owns 40% of Wal-Mart

• Headquartered at Bentonville , Arkansas , US

• Total No. of Stores – 8446 Stores– Stores in US – 4381Stores in US– Outside US – 4065 Stores in 14 Countries

• Total Employees – 1.9 Million• Total Sales – 348.6 billion in 2008• Net Income – 11 billion in 2008


PRODUCTS OFFERED BY WAL-MART GLOBALLY

• Family apparel• Healthy and beauty aids• Household needs • Electronics• Toys• Lawn and garden items• Jewelry• Automotive products• Home furnishings• Hardware• Sporting goods• Pet supplies• Housewares


WAL-MART’S PRESENCE ACROSS GLOBECOUNTRY NO. RETAIL OUTLATES

USA 4,381MEXICO 1,469BRAZIL 434JAPAN 371

UNITED KINGDOM 371CANADA 317CHINA 279CHILE 252COSTA RICA 170GUATEMALA 164EL SALVADOR 77PUERTO RICO 56NICARGUA 55HONDURAS 53ARGENTINA 43INDIA 3GRAND TOTAL 8446


WHAT BRINGS WAL-MART TO INDIA?

• A tremendous market• Emergence of middle class – 300 million• Consumer class of 105 million growing at rate of 10% & with an annual

avg household income of $3000• Demographics – 60% of Indian population is in age group of 20-30 & is

more inclined towards modern shopping.• Consumer spending growing rapidly –credit card• GDP growing about 6-8%


OPPORTUNITIES IN INDIA

• India’s retail trade is estimated at $206 billion & growing at 5% annually• Only 3% of market organized – shopping malls• India as fastest growing sourcing market• India’s vast market for food retailing• Cold chain - Refrigerated distribution of fruits n vegetables• Can add value to customers by means of low price and wide range of

merchandise

Wal-mart’s entry in india

• Indian Retail industry to grow from US $427 billion to 637 in year 2015, out of which only 3% is organized sector.

• Govt. FDI Policy does not permit 100% FDI into multi-brand stores. • In 2007 – Bharti Enterprises and Wal-Mart Stores, Inc. signed an agreement

to establish Bharti Wal-Mart Private Limited with 50:50 JV.• A B2B joint venture for wholesale cash-and-carry and back-end supply

chain management operations in India to serve: Small Retailers, Manufacturers, Institutions, and Farmers.

• Bharti group will lead and manage the front end operations. Wal-Mart will power the logistics and back end operations.


Wal-mart operation

Logistics - Heart of Wal-Mart’s operations.

Procurement and Distribution• 40 Regional Distribution Centers. • Each one is over 1 million square feet in size.• Each DC supports between 75 and 100 stores within a 250-mile radius.• Procured goods directly from manufacturers bypassing all intermediaries.• Tough negotiator on prices.• Wal-Mart own warehouses directly supplied over 85% of the inventory as

compared to 65% by competitors.• Distribution center to be divided on the basis of quantity of goods

received.


Wal-Mart Marketing Strategy

Mission/Vision : To give ordinary folk the chance to buy the same thing as rich people.

Product Strategy: Lowest prices across-board the product linesProduct USP: core competencyLow prices, In-stock positions, Customer service

Service Strategy:Respect for the individual, High standards of service and Constant strive for excellence

Segmentation: middle-class, lower middle

Positioning: Consistent positioning- “Always low prices”

Activities: Food retail, Non-Food retail and On-line food retailer

Intangibles: Personalized customer service

Sector Strategy: Diversification

SWOT ANALYSIS OF WALMART Strength

• Efficient supply chain management• Service innovation and technology• Large convenience stores, which offer one

stop solution for all the customers needs• Least cost of packaging • strong penetration strategies• Infrastructure (financial strength)

Weakness

•Poor public image• Late entrant in international market.• Unable to adapt to different countries• Ununionised & Strict labor laws• Were unable to handle media• High law suits against the company.• Greater global footprints makes for difficulty in inventory management

Opportunity •Many countries are still left• Unorganized retail• Globalization (diminishing trade barriers)• Cold Storage market• Increase in consumer purchasing power• E-business• Unemployment

Threats •Competitors• Anti- outsourcing laws coming into force•An increasingly environment conscious consumer base•Exposure to the political and socio- economic upheavals across the world

Thank You


Wal-Mart – Competing in the Global Market (SWOT analysis)

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