Walmart Strategy

1 Walmart

Wal-mart Submitted By: Ab

2 Walmart

About Wal-mart o Sam Walton opened the first store in 1962 in Rogers, Arkansas. o Within 5 years there were 25 Walmart stores earning a total revenue of $12.6 million in sales. o In 1972 Wal-mart was listed in the NYSE. o In 2005 Wal-mart incorporated sustainability in it’s business under their CEO H Lee Scott Jr.

3 Walmart

Contd. o In August 2007, Wal-Mart and Bharti Enterprises announced an agreement to establish Bharti WalMart Private Limited. o Mike Duke succeeded Lee Scott as president and chief executive officer onFebruary 1, 2009. o Presently 7,800 stores and club locations in 14 markets employ more than 2 million associates, serving more than 176 million customers a year

4 Walmart

Vision and Mission o Saving people money to help them live better. o Offers the best quality merchandise at the lowest prices in all their stores, from school supplies, to household items and top quality groceries.

5 Walmart

Financial Data(net income in millions vs years)

6 Walmart

Strategic partnerships o Pioneering effort with Proctor & Gamble (permanent team of 70 P&G people in Bentonville, it’s headquarter) o Partnership with CRM & Environmental Defence Fund to implement sustainability in it’s business. o Clinic at Wal-Mart: Wal-Mart partners with hospitals to rapidly expand in-store clinics(wants the good will a trusted hospital name can provide) o Single largest U.S. importer of Chinese consumer goods

7 Walmart

SWOT

8 Walmart

Strategy of Wal-mart 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

9 Walmart

Operations Strategy o Wal-mart created significant advantage through the systems it developed to manage it’s warehouses and stores o Initially Wal-mart choose locations without direct competitions from large chains(rural areas) o Wal-mart created a culture of supporting values, skills, technologies, supplier –customer relationship, HR and approaches to motivation that could not be easily copied by other firms

10 Walmart

Organic Growth o Steadily builds new stores doesn’t buy other chains o Builds stores in cheap locations with room for expansion from standard, efficient design (no acquisitions) o With only 10% (vs. 25% of industry std) of space for storage (relying on logistical superiority)

11 Walmart

System lock in Presently Wal-mart is in the best product stage, but steadily moving toward total customer solution.

Total Customer solution Best product (wal-mart)

12 Walmart

Value proposition • Excel at attributes such as price, quality, on-time delivery, selection, availability, that their competitors can’t match • Non-commodity brand based on lower prices, which is a key differentiator and value proposition to most of our society today. • Change in tagline last year – from “Everyday Low Prices” to “Save Money. Live Better.” proves it’s move toward sustainable products with low cost.

13 Walmart

Conclusion ØWal-mart is the leader in the Low cost retailing industry ØWith $404.16 billion in revenue, the company is bigger than 160 nations. ØImbibing sustainable business practices in it’s business process ØHas strategic partnerships with P&G, China, several consulting firms which provide them sustainable business consulting.

14 Walmart

Thank you!