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7/30/2019 2. Wallmart by Jeevan
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7/30/2019 2. Wallmart by Jeevan
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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 undisputedking of retailing
The company has 10,130 stores worldwideWal-Mart Supercenters include supermarkets
and average 185,000 square feet
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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 insales
The company was guided by founder Sam Walton'spassion for customer satisfaction and "Every Day LowPrices."
In 1970, the company opened its first distributioncenter and corporate headquarters in Bentonville, AR,where it is located today. Wal-Mart also went publicthe same year.
In 1983, the first Sam's Club warehouse store
opened.-
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Headquarters
Bentonville, USA
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Mission Statement andPurpose
"We save people money so they can livebetter."
In addition to this mission statement, thecompany looks to its founder, Sam Walton for acompany "purpose":
If we work together, well lower the cost of
living for everyonewell give the world an
opportunity to see what its like to save and
have a better life.
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Products Major Brands Sam's Choice Great Value Equate Mainstays Ol' Roy Dr Thunder Special Kitty
Parent'sChoice
White Stag George
AdditionalBrands 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 SuperTechWalmart
Family Mobile World Table
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5 force model Threat of new competition
Threat of substitute productsor services
Bargaining power ofcustomers
Bargaining power of suppliers
Intensity of competitive rivalry
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Threat of new entrants France is a big market experiencing significant
growth in retail industry in recent years. Strongeconomy, stable government, favorable government
policies for foreign investment and well-developedinfrastructure and with introduction of EURO ascommon 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 andit is getting mature quickly and have low profitmargins.
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Substitute productsAs the retail industry sells products of daily common
use, there are no direct substitutes; the onlysubstitute products that can be threat are the
products from gray market, which can harm thesales of branded products. Department and discountstores also faces stiff competition from specializedretail shops such as garments, electronics etc.
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Suppliers Because of the diverse product range that is
distributed by retailers there are many differentsuppliers. Suppliers include both domestic and
international manufacturers and as the products aremore or less standardized in nature, retailers andwholesalers have low switching costs, the powers ofsupplier are moderate to low.
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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 ofproducts and increased price competition, and theydemand better and wider choices. They also exertpressure on manufacturers and retailers to give
more relevant product information.
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Competitorso Kmarto Targeto ShopKo
o Meijero Zellerso Harto Real Canadian Superstoreo Giant Tigero Comercial Mexicanao Sorianao Costco
SWOT l i
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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 globalyou need money. Not only to invest in new markets, but to keep up with thecompetition at home.
Computer System:Wal-Mart has one of World's best Retail Link computer systems to keep incheck inventories that have provided it a definite edge over its competitorsover the years.
Culture:Strong work ethics and commitment towards consumers made everyemployee 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,
Strengths
SWOT l i
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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 billionshare 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 l i
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SWOT analysis
Hidden Legal Barriers:As the France government have imposed significant legal barriers tocontrol the growth of department stores and hypermarkets to savetraditional small shops and for saving beauty of the environment
caused by sign boards (what are they called).These Trade barrierposes 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
SWOT l i
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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
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Strategies Strong Distribution, Inventory management system
Differentiated pricing
Cost advantage strategy
IT advantage
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Corporate Strategies
Dominance in Retail Market
Expansion in US and International market
Creation of Positive Brand and CompanyRecognition
Branching into new sectors of retail
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Key Success FactorsAcquisition of McLane Company in year 1990
Diversification in Food and Grocery retailing
Razor thin margin provides Great Value tocustomer
Acquire of PACE club Kmart
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ConclusionWal-Mart must adopt a friendlier corporate attitude
It needs to relax anti-unionization policy
Improve public perception that Wal-Mart can destroycommunities
International expansion should be done with thehelp of Local retailers
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Thank you!