Walmart – Competing In The Global Market

Wal-Mart – Competing in the Global Market Anjana Singh (07EP-010) Raj Kumar Kesarwani(07EP-035) Anshul Agarwal (07EP-011) Ravinder Singh(07EP-037) Kanishk Chhabra(07EP-022)

What is Wal-Mart ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Wal-Mart Subsidiaries ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Key Statistics on Wal-Mart ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Wal-Mart’s growth in last 25 yrs ,[object Object],[object Object],[object Object],[object Object]

Some interesting figures ,[object Object],[object Object],[object Object],[object Object]

Wal-Mart International ,[object Object],[object Object],[object Object],[object Object],[object Object]

Wal-Mart – Market Share / Competitors ,[object Object],[object Object]

Wal-Mart Corporate Values ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Wal-Mart does to achieve those values ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Wal-Mart does to achieve those values (Cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Co-branding with McDonalds Co-branding Personalized customer service Intangibles 1. Food retail 2. Non-Food retail 3. On-line food retailer Activities Consistent positioning- “Always low prices” Positioning middle-class, lower middle Segmentation 1. Respect for the individual 2. High standards of service 3. Constant strive for excellence Service Strategy ,[object Object],[object Object],[object Object],Product Strategy To give ordinary folk the chance to buy the same thing as rich people . Mission/ Vision Wal-Mart

Sector Strategy: Diversification 12 international locations 5 . Expansion abroad Sam’s Club 4 . Wholesale WalMart.com 3. E-commerce Wal-Mart Stores, 2. Discount format Tire & Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, Wal-Mart Vacations, Wal-Mart's Used Fixture Auctions 1. Non-food Wal-Mart Diversified into

Penetration/ Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Potential Development strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Consumer Global Brand Opportunities: Wal-Mart

SITUATIONAL ANALYSIS—GOING GLOBAL ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

STEP 1-DECIDING COUNTRY-specifics of the business, competitive and economic environments Acquiring an existing player (GM,CN,UK,SK,PR,JP) Starting new stores on own Joint Ventures(MX,BZ) STEP 2-DECIDING STRATEGY Start greenfield* operations .(AG,CH) SITUATIONAL ANALYSIS—GOING GLOBAL *A new operation that is built from “the ground up”. `

SITUATIONAL ANALYSIS—GOING GLOBAL ** no.of stores operating as on Jul2007 Three successes out of ten….Successes 3/10 SUCCESSFUL.(50% of the market) Competition by Carrefour Entered in 1997 JV with Cifra Local market knowledge Overcame cultural barriers Joint Venture Mexico (**919) SUCCESSFUL. Competitors-Tesco’s and Sainsburys Acquired ASDA’s operations(232 stores)1999 Acquiring UK(**337) Cashing on the M&A synergies VERY SUCCESSFUL Wiped out T.Eaton Company, a major player Woolco 122 stores in 1992 Acquiring a weak player Canada (**290) Operated in areas that have high brand recognition Operated in areas requiring minimum cultural adaptation Emphasised on customer service & store design Strategy Fate of the deal Mode of Entry Country

SITUATIONAL ANALYSIS—GOING GLOBAL Three successes out of ten…….. ** no.of stores operating as on Jul2007 3/10 -Wrong anticipation of the Argentine - Competition by Carrefour Gained experience from Mexico & Brazil Greenfield Operation Argentina (**15) Economies of Scale FAILED. Entered in 1997(21+74 stores); Exited in 2007 -American Style Working practices -High Labor Costs. -Management-- Staff Rifts -Competitors: ALDI and LIDI (cheap) . Acquired largest players Wertkauf and Interspar Acquiring Germany (**0-88) Similar business and HR models Met EU guidelines for business Utilised Discount tactics Developed economies of Scale Emphasised on Customer service Leveraged experience of Mexican mkts Strategy When entered in 1995 Already Carrefour,P de A, and Sendas So very tough competition(Pi was eaten) What was the fate of the deal 60-40 JV Brazil (**298) Mode of Entry Country

SITUATIONAL ANALYSIS—GOING GLOBAL ** no.of stores operating as on Jul2007 Three successes out of ten …. … 3/10 Met government trade & business laws Sourced from local manufacturers who understand local tastes Sourced stocks from international suppliers who manufacture in China -Took much time -Biggest Walmart Supplier. -Forced to allow unionization of workers. -Gender Discrimination -Immigration law-suit Merchandising & store designs suiting the consumers Greenfield Operations China (**184) ,[object Object],[object Object],Entered in 2003 by acquiring Supermercados Amigo(31 stores). Entered in 1998 . Acquiring majority shares in KOREA MAKRO Strategy -Continuing losses every year ( US marketing model) -Faced a strong revolt from local small players. FAILED. no personalization, quality first) -Exited in 2006,like NOKIA,NESTLE GOOGLE and CARREFOUR. (unfair labor standards, wages) What was the fate of the deal Acquiring Japan-(**392) Acquiring a major player Puerto Rico (**54) Acquiring majority shares S.Korea(**0-16) Mode of Entry Country

LATEST GLOBAL ENTRIES…(5nos)…… ***** India September 2005 September 2005 September 2005 September 2005 September 2005 Date of Entry CARHCO CARHCO La Fragua(CARHCO) CARHCO CSU(CARHCO) Firm partner/acquired 40 44 137 63 140 Retail Units as on Jul2007 Nicaragua Honduras Guatemala El Salvador Costa Rica Country

Supply chain integration in developing countries

Strength in supply chain ,[object Object],[object Object],[object Object],[object Object],[object Object]

SWOT ANALYSIS (GLOBAL) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What brings Wal-Mart to India? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Opportunities in India ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Challenges in India ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Present Scenario ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Recommendation ,[object Object],[object Object],[object Object],[object Object]

Web References ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Walmart – Competing In The Global Market

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