Sosuke Sugisaka (Chris). Tan Ming Jiang (MJ). 11340696040
11340696018
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Company overview and main business in the worldWalmart business
model analysisWalmart in China How Walmart understand Chinese
market & consumers?Situation and competitors anaylsis (local
and international)Major problems facing Walmart Content Whats the
next step for Walmart?
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MNC - Largest Retailer in the World Large Discount Departmental
Stores 2 nd Largest Corporation in the World Company overview and
main business in the world
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Founded in 1962 1972
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Regional to National Giant (1980 1990) Most Profitable &
Largest Retailer in US by 1989 Largest Grocery Retailer in US
Generated 51% of US$258B Sales in Grocery Business in US 2009
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10,900 27 Countries E- commerce in 10 Countries 2.2M Associates
around World Unsuccessful in Germany, Russia, South Korea
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Osterwalders 9 point decomposition of a Business Model
(Chesbrough, 2010) Everyday low price Shoppers convenience Saving
time & money Owned & Direct Low Cost Engagement Mass Media
Co-creation of products Mass communication 3 groups of customers
Purchasing goods Their delivery (logistics) Total cost control
Physical resources Human resources Company culture Strong buyer-
supplier R/S Suppliers keep prices & costs low Reaps EOS &
optimizes cost structure Cost-drive model minimizing costs Using
technology to reduce costs gaining EOS Passing operating costs to
suppliers Retail Sales from customer segment; music D/L Drives its
own brand Adv of selling goods before paying Walmart business model
analysis
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1996 SupercenterSams Club Walmart in China
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2002: Opening of Walmarts global sourcing office 2007:
Purchased 35% of shares from Trust- Mart 2012: Completed buying all
the shares 2011: Walmarts China eCommerce headquarters in Shanghai
established 2012: 51% ownership of Yihaodian fastest growing
e-commerce business in china
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90,841 Associates Contributions to China 20,000 Supplier
Partnerships 99.9% Chinese Employees Best Employer in China by
FORTUNE China and Watson Wyatt Most Generous MNC Donors in China by
Forbes China Community Involvement Award in China by the Guangming
Daily
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Walmart donated over RMB 20M to the Sichuan earthquake-
stricken areas (2008) Corporate Social Responsibility Walmart held
nearly 400 community activities at 150 stores in over 80 cities
across China (2009) Earth Month green campaign launched across
China turning off 1/3 of the lighting in the stores during off-peak
hours in line with WWFs Earth Hour program. (2010 Mar Apr)
Environmental protection Community involvement Child welfare
Educational support Disaster relief, child welfare, educational
support, and disaster relief.
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How Walmart understand Chinese market & consumers?
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Understanding the Chinese Market Diverse population Too many
players Local protectionism Regulatory restrictions Employees
relatively unsatisfied
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Reason for shopping Analyzing the Behaviour of Chinese
Consumers Like on-site promotions Impulse Driven
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Trend of Chinese Lifestyle Frequent shoppers of small amounts
Appreciate freshness for food Brand conscious but not loyal
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2011 Situation and competitors anaylsis (local and
international)
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A High and Low pricing Everyday Low Price CONCEPT
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LOCATION Suburban areas lower incomes areas Urban residential
areas Higher incomes areas
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SUPPLY CHAIN Central distribution Local distribution
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E- commerce LocalizationQuality Major problems facing
Walmart
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Bitter competition for Market Share
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Too large store Inconvenient for going on Foot? Not traditional
shopping
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Low quality Poor in diversity Too cheap
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Whats the next step for Walmart?
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E- commerce Fascination Delivery Point Syste m
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Localization Quality Community- based store Focus on the Mid
and High class Enrich diversity Others