Wal-mart

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About Wal-mart O Sam Walton opened the first store in 1962 in Rogers, Arkansas. O Within 5 years there were 25 Wal-mart stores earning a total revenue of $12.6 million in sales. O In 1972 Wal-mart was listed in the NYSE. O In 1991, Wal-Mart became an international company when we opened a Sam's Club near Mexico City. Just two years later, Wal-Mart International was created. O In 2005 Wal-mart incorporated sustainability in it’s business under their CEO H Lee Scott Jr. O In August 2007, Wal-Mart and Bharti Enterprises announced an agreement to establish Bharti Wal-Mart Private Limited. O Mike Duke succeeded Lee Scott as president and chief executive officer on February 1, 2009. O Presently 7,800 stores and club locations in 15 markets employ more than 2 million associates, serving more than 176 million customers a year O Wal-mart’s major international operations are in the following markets: Argentina

Brazil

Canada

Japan

Chile

China

India

UK

Mexico

Puerto Rico

Central America

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Vision and Mission Vision Statement

Saving people money to help them live better.

Mission Statement

Offers the best quality merchandise at the lowest prices in all their stores, from school supplies, to household items and top quality groceries.

Purpose. . . Sam Walton said it best, “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.”

Management Style  Maintain an open-door policy  Empowering associates  Maintain technology superiority  Build loyalty among associates, customers, and suppliers

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Business Strategies o Same goods for less( charges 2-5%lower price) & still earns profit. o Very good operational efficiency. o Use of IT in all verticals of business o Effective use of logistics management o Global Expansion for new market opportunity o Networked to HQ via private satellite in 1983 o Bargaining power over suppliers o Data used to “profile” each market o Predicts demand, optimizes stock

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Marketing Strategies Thinking globally. Serving locally. Wal-mart international stores offer working families the things they need at prices they can afford, and offer the customer service and convenience they’re famous for. In each of their international markets, they use their strength as a global company to meet the local needs of our customers, and provide help for their communities.

Saving People Money so they can live better. Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Wal-Mart. Today, more than 40 years later with operations in 16 markets worldwide, Wal-mart continue to deliver that promise to families around the globe. It’s the focus that underlies everything they do at Wal-Mart. And for the millions of customers who shop at Wal-mart stores and clubs around the world each week, it means a lot. ‘Saving money — good news in any language’

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“Every Day Low Price” is a epicenter of the Wal-mart marketing strategy.

SWOT Analysis Strength  Cost Advantage.  Low Price and Customer Oriented.  Focused strategy.  Strong Supply Chain Management.  People are key to success

Weakness  Ignore store decoration  Wal-mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.  Managing huge span of control.

Opportunity  Strong Brand Equity.  Put efforts on social welfare – better image.  New location, or store types.

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 Oversees Markets.

Threats  Other Competitors.  Intense price competition.

Key Success Factors The Company’s ‘Low Price’ image, backed by the strong integrated marketing strategy is the key success factor of Wal-mart. People at Wal-Mart believe that , ‘saving money is a good news in any language’. – This statement (believe) is certainly true as it helped them acquiring success in which this concept is not so popular – like Germany. Walton’s 10 commandments for business success were: 1. Commit to your business. 2. Share your profits with your associates (employees), and treat them like your partners. 3. Energies your colleagues. 4. Communicate everything you possibly can with your partners. 5. Appreciate everything your associates do for the business. 6. Celebrate your success. 7. Listen to everyone in your company. 8. Exceeds your customers expectations.

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Control your expenses better than your competition. 10.Blaze your own path . 9.

Management at Wal-Mart strictly adheres to these commandments, and that’s the key to their success.