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We Are the NATION , the NATION OF DOMINATION !!!! NEWS
 
COMPANY’S  MISSION: “ Saving people money so they can live better ” LEADERSHIP : Sam  Walton “ Save Money Live Better ,"
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WAL-MART : EVOLUTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WAL-MART : EVOLUTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WAL-MART : EVOLUTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WAL-MART :  BUSINESS SEGMENTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WAL-MART : CONCEPTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MISSION  CHINA
Wal-Mart’s International Operations ,[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],Now in China Supercenters 97 SAM'S CLUBs 3 Neighborhood Markets 2 Trust-Mart 100 Associates More than 1.9 million  Development center Northeast Development center North Development center Southwest Wall-Mart South Super center Apr. 2000 1 st   Super center Apr. 2001 2 nd   Super center Oct. 2002  Super center July 2005 its 48 th  store
Wal-Mart’s International Presence in 2005 Country Mode Of Entry Year of Entry JV partner/ Company Acquired No. of Stores Mexico Joint Venture 1991 Cifra 679+ Puerto Rico Wholly owned subsidiary  1993 Wal-Mart Puerto Rico,Inc. 54 Canada Acquisition 1994 Woolco Stores 262 Argentina Greenfield operations 1995 - 11 Brazil Joint Venture 1995 Lojas Americans’ 149 China Joint Venture 1996 Shenzhen international Credit Investment Company 45+
Cont…. Country Mode Of Entry Year of Entry JV Partner/ Company Acquired No. of Stores Germany Acquisition 1997 Wertkauf and Interspar 91 South Korea Acquisition 1998 Makro Stores 16 United Kingdom Acquisition 2000 Asda 282 Total - - - 1587
Wal-Mart’s Division Wise Operating Results 2005 2004 2003 Division Net sales ($ mn) % of Total %  Increase Net sales ($ mn) % of Total % increase- Net sales ($ mn) % of Total Wal-Mart’s stores 191,826 67.3 10.1 174,220 68.0 10.9 157,120 68.4 SAM’s Club 37,119 13.0 7.5 34,537 13.5 8.9 31,702 13.8 Internati-onal 56,277 19.7 18.3 47,572 18.5 16.6 40,794 17.8 Total net sales 285,222 100 11.3 256,329 100 11.6 229,616 100
Operating Income from International Operations Fiscal year Operating Income (in $ million) 2005 2,998 2004 2,370 2003 1,998
Governance Practices ,[object Object],[object Object],[object Object],[object Object]
Charitable contribution by Wal-Mart ,[object Object],[object Object]
List of honors received by Wal-Mart in China Prize- winning Company/store year Honorary Title Award- giving Official Unit 1998 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau Lakeview Wal-Mart Supercenter (shenzhen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau
Cont……. Prize- winning Company/store year Honorary Title Award- giving Official Unit Zhongshon  Wal-Mart Supercentre (shenzen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB
The Approach to maintain EDLP
[object Object],[object Object],[object Object],[object Object],[object Object]
STORE MANAGEMENT ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wal-Mart’s golden strategy was not fully successful . Transportation cost for wal-mart in china was high due to long  distances. In 2003, Wal-Mart’s distribution center opened in “Tianjin” was  not utilized properly. Suppliers were unhappy with the company’s sudden price reduction practice.
 
 
VS
Wal-Mart entered china in 1994 First store in 1996 at Shenzhen In a year sales touched $120.8 million April 2001 9 stores with investment of $108.7 million 2004 Wal-Mart invested 1.6 billion  RMB in china and established 45 stores 1 3 9 16 22 25 1999   2003  2004
Carrefour in china ,[object Object],[object Object],[object Object],[object Object],[object Object]
Comparison Table Context Carrefour Wal-Mart Start 1995 1996 Strategies Unethical Ethical Localized approach Localized Approach Simple procurement process  Complex procurement process Decentralization Centralization Joint Venture 8 Local Retailers With investment company GPC 10 6 Growth Inorganic Organic ,[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],Thereat from competitors Carrefour plan of  300 discount stores Thereat of new entrance Home world group in northern china Revelry Strong competition from the local players as the copy the EDLP strategy, and get supplies for  low cost Porter’s 5 Factor analysis
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],WAL ď‚« MART Strategies adopted in China
WAL ď‚« MART Future Of  Walmart
Expansion in Asian Markets Expected Surge in Global sales-20 % India’s Entry Strategy- Joint venture with Bharti Enterprises
Home World Group  Statement made by Du Sha Owner Home World Group In any country you go to the world,  it’s a local company which that leads the industry such as Walmart in the U.S. and Carrefour  in France. In China it won’t be different.
WAL ď‚« MART Disadvantages to Walmart
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Local Competitor’s Strategy
 

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Walmart The Nation Of Domination WAL mart strategies in china

  • 1. We Are the NATION , the NATION OF DOMINATION !!!! NEWS
  • 3. COMPANY’S MISSION: “ Saving people money so they can live better ” LEADERSHIP : Sam Walton “ Save Money Live Better ,"
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 11.
  • 12.
  • 13. Wal-Mart’s International Presence in 2005 Country Mode Of Entry Year of Entry JV partner/ Company Acquired No. of Stores Mexico Joint Venture 1991 Cifra 679+ Puerto Rico Wholly owned subsidiary 1993 Wal-Mart Puerto Rico,Inc. 54 Canada Acquisition 1994 Woolco Stores 262 Argentina Greenfield operations 1995 - 11 Brazil Joint Venture 1995 Lojas Americans’ 149 China Joint Venture 1996 Shenzhen international Credit Investment Company 45+
  • 14. Cont…. Country Mode Of Entry Year of Entry JV Partner/ Company Acquired No. of Stores Germany Acquisition 1997 Wertkauf and Interspar 91 South Korea Acquisition 1998 Makro Stores 16 United Kingdom Acquisition 2000 Asda 282 Total - - - 1587
  • 15. Wal-Mart’s Division Wise Operating Results 2005 2004 2003 Division Net sales ($ mn) % of Total % Increase Net sales ($ mn) % of Total % increase- Net sales ($ mn) % of Total Wal-Mart’s stores 191,826 67.3 10.1 174,220 68.0 10.9 157,120 68.4 SAM’s Club 37,119 13.0 7.5 34,537 13.5 8.9 31,702 13.8 Internati-onal 56,277 19.7 18.3 47,572 18.5 16.6 40,794 17.8 Total net sales 285,222 100 11.3 256,329 100 11.6 229,616 100
  • 16. Operating Income from International Operations Fiscal year Operating Income (in $ million) 2005 2,998 2004 2,370 2003 1,998
  • 17.
  • 18.
  • 19. List of honors received by Wal-Mart in China Prize- winning Company/store year Honorary Title Award- giving Official Unit 1998 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau Lakeview Wal-Mart Supercenter (shenzhen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 Advanced Food Sanitation Enterprise Shenzhen Public Health Bureau
  • 20. Cont……. Prize- winning Company/store year Honorary Title Award- giving Official Unit Zhongshon Wal-Mart Supercentre (shenzen) 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB 2001 Good Reputation Store Shenzhen quality & Technology Supervision Bureau 2000 No Fake products Store Shenzhen quality & Technology Supervision Bureau, STDB
  • 21. The Approach to maintain EDLP
  • 22.
  • 23.
  • 24.
  • 25. Wal-Mart’s golden strategy was not fully successful . Transportation cost for wal-mart in china was high due to long distances. In 2003, Wal-Mart’s distribution center opened in “Tianjin” was not utilized properly. Suppliers were unhappy with the company’s sudden price reduction practice.
  • 26.  
  • 27.  
  • 28. VS
  • 29. Wal-Mart entered china in 1994 First store in 1996 at Shenzhen In a year sales touched $120.8 million April 2001 9 stores with investment of $108.7 million 2004 Wal-Mart invested 1.6 billion RMB in china and established 45 stores 1 3 9 16 22 25 1999 2003 2004
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35. WAL ď‚« MART Future Of Walmart
  • 36. Expansion in Asian Markets Expected Surge in Global sales-20 % India’s Entry Strategy- Joint venture with Bharti Enterprises
  • 37. Home World Group Statement made by Du Sha Owner Home World Group In any country you go to the world, it’s a local company which that leads the industry such as Walmart in the U.S. and Carrefour in France. In China it won’t be different.
  • 38. WAL ď‚« MART Disadvantages to Walmart
  • 39.
  • 40.
  • 41. Â