Wallmart by jeevan
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Transcript of Wallmart by jeevan
Company Profile It's the world's biggest retailer and also the
biggest employer with over 2.1 million full- and part-time workers worldwide
Known for its low pricing and wide selection of goods, Wal-Mart has become the undisputed king of retailing
The company has 10,130 stores worldwide Wal-Mart Supercenters include
supermarkets and average 185,000 square feet
History The first Wal-Mart store opened in 1962 by brothers Sam
and Bud Walton. By 1964, Wal-Mart had 24 stores with $12 million in sales The company was guided by founder Sam Walton's
passion for customer satisfaction and "Every Day Low Prices."
In 1970, the company opened its first distribution center and corporate headquarters in Bentonville, AR, where it is located today. Wal-Mart also went public the same year.
In 1983, the first Sam's Club warehouse store opened. In 1988, the first Wal-Mart Supercenter opened which
featured a Wal-Mart store with a full-scale supermarket inside.
Headquarters Bentonville, USA
Mission Statement and Purpose"We save people money so they can live better."
In addition to this mission statement, the company looks to its founder, Sam Walton for a company "purpose":
“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.”
Products Major Brands
Sam's Choice Great Value Equate Mainstays Ol' Roy Dr Thunder Special Kitty Parent's Choice White Stag George
Additional Brands Apparel
Baby George Faded Glory No
Boundaries Simply Basic
Homliness Better
Homes and Gardens
Canopy Hometrends your zone4
Others @ the Office Best Occasions Clear American Color Place Douglas EverStart Fire Side
Gourmet Gold's Gym Holiday Time Kid Connection Marketside Oak Leaf ONN Ozark Trail Protege ReliOn SuperTechWalma
rt Family Mobile World Table
5 force model Threat of new competition
Threat of substitute products or services
Bargaining power of customers
Bargaining power of suppliers
Intensity of competitive rivalry
Threat of new entrants France is a big market experiencing
significant growth in retail industry in recent years. Strong economy, stable government, favorable government policies for foreign investment and well-developed infrastructure and with introduction of EURO as common currency and same international laws, makes France a very attractive place to be in. But at the same time the entry and exit levels are high and it is getting mature quickly and have low profit margins.
Substitute products As the retail industry sells products of daily
common use, there are no direct substitutes; the only substitute products that can be threat are the products from gray market, which can harm the sales of branded products. Department and discount stores also faces stiff competition from specialized retail shops such as garments, electronics etc.
Suppliers Because of the diverse product range that is
distributed by retailers there are many different suppliers. Suppliers include both domestic and international manufacturers and as the products are more or less standardized in nature, retailers and wholesalers have low switching costs, the powers of supplier are moderate to low.
Buyers The consumers are now more sophisticated
and mature. As said by Carrefour, “they want it now and they want it with the best service and the best quality”. Consumers enjoy increasing choice of products and increased price competition, and they demand better and wider choices. They also exert pressure on manufacturers and retailers to give more relevant product information.
Competitorso Kmarto Targeto ShopKoo Meijero Zellerso Harto Real Canadian Superstoreo Giant Tigero Comercial Mexicanao Sorianao Costco
SWOT analysis
Financial Strength:Wal-Mart is the world's largest retailer with a turnover of more than $137billion. CEO of Carrefour, Mr. Bernard said that, "but now, to be global you need money. Not only to invest in new markets, but to keep up with the competition at home.
Computer System:Wal-Mart has one of World's best Retail Link computer systems to keep in check inventories that have provided it a definite edge over its competitors over the years.
Culture:Strong work ethics and commitment towards consumers made every employee an asset for the company.
Buying power:Wal-Mart enjoys huge economy of scale as it has tremendous buying power, most of its suppliers are working on international scenario like P&G, therefore, the company can have even more bargaining power when whole operation netted into one.
Strengths
SWOT analysis
Liquidity Ratio and Financial Stability RatioDue to recent acquisitions in Germany, South Korea, Canada, expansion of operations in USA and other countries and $ 2 billion share buyback have resulted in very low quick ratio, also Debt Equity Ratio is well above the critical level of 1 and is still going up
Weakness
SWOT analysis
Hidden Legal Barriers:As the France government have imposed significant legal barriers to control the growth of department stores and hypermarkets to save traditional small shops and for saving beauty of the environment caused by sign boards (what are they called).These Trade barrier poses significant treat for Wal-Mart to grow in France
Economic and Political Turbulence in Europe• The ongoing economic war between European Union and
USA• War in Kosovo• Political Turbulence in Germany• Change in Currency Exchange Rates
Threats
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LYSIS
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Strengths• Powerful Retail brand, Large scale of operations worldwide• One Stop Retail destination• Strategic business programs• Efficient working capital management
Weakness• Self Cannibalization• Involvement in numerous legal issues• Continuous Product Recall• Community Relations Problem
Opportunity• Global Food Safety Initiative Standard
• Increasing demand of Online sales• Increasing opportunity in Growing economy
Threats• Intense competition• Price matching program by Target• Foreign currency fluctuation
SWOT analysis
Strategies Strong Distribution, Inventory management
system Differentiated pricing Cost advantage strategy IT advantage
Corporate Strategies Dominance in Retail Market Expansion in US and International market Creation of Positive Brand and Company
Recognition Branching into new sectors of retail
Key Success Factors Acquisition of McLane Company in year 1990 Diversification in Food and Grocery retailing Razor thin margin – provides Great Value to
customer Acquire of PACE club Kmart
Conclusion Wal-Mart must adopt a friendlier corporate
attitude It needs to relax anti-unionization policy Improve public perception that Wal-Mart can
destroy communities International expansion should be done with
the help of Local retailers
Thank you!