Walmart profile, History, Headquarters, Products, Porters five force model/analysis, competitors, SWOT analysis, strategies, conclusion, KSF (key success factors, vision, mission

2. Company Profile
 It's the world's biggest retailer and also the
biggest employer with over 2.1 million full-
and part-time workers worldwide
 Known for its low pricing and wide selection of
goods, Wal-Mart has become the undisputed
king of retailing
 The company has 10,130 stores worldwide
 Wal-Mart Supercenters include supermarkets
and average 185,000 square feet

3. History
 The first Wal-Mart store opened in 1962 by brothers
Sam and Bud Walton.
 By 1964, Wal-Mart had 24 stores with $12 million in
sales
 The company was guided by founder Sam Walton's
passion for customer satisfaction and "Every Day Low
Prices."
 In 1970, the company opened its first distribution
center and corporate headquarters in Bentonville, AR,
where it is located today. Wal-Mart also went public
the same year.
 In 1983, the first Sam's Club warehouse store
opened.

4. Headquarters
 Bentonville, USA

5. Mission Statement and
Purpose
"We save people money so they can live
better."
In addition to this mission statement, the
company looks to its founder, Sam Walton for a
company "purpose":
“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.”

6.  Others
 @ the Office
 Best Occasions
Products  Additional
Brands  Clear American
 Color Place
 Apparel
 Major Brands  Baby George
 Douglas
 Sam's Choice  EverStart
 Faded Glory  Fire Side Gourmet
 Great Value  No
 Equate Boundaries  Gold's Gym
 Mainstays  Simply Basic  Holiday Time
 Ol' Roy  Kid Connection
 Marketside
 Dr Thunder  Homliness
 Oak Leaf
 Special Kitty  Better Homes
and Gardens  ONN
 Parent's  Ozark Trail
Choice  Canopy
 Hometrends  Protege
 White Stag
 your zone4  ReliOn
 George
 SuperTechWalmart
Family Mobile
 World Table

7. 5 force model Threat of new competition
Threat of substitute products
or services
Bargaining power of
customers
Bargaining power of suppliers
Intensity of competitive rivalry

8. Threat of new entrants
 France is a big market experiencing significant
growth in retail industry in recent years. Strong
economy, stable government, favorable government
policies for foreign investment and well-developed
infrastructure and with introduction of EURO as
common currency and same international laws,
makes France a very attractive place to be in. But at
the same time the entry and exit levels are high and
it is getting mature quickly and have low profit
margins.

9. Substitute products
 Asthe retail industry sells products of daily common
use, there are no direct substitutes; the only
substitute products that can be threat are the
products from gray market, which can harm the
sales of branded products. Department and discount
stores also faces stiff competition from specialized
retail shops such as garments, electronics etc.

10. Suppliers
 Because of the diverse product range that is
distributed by retailers there are many different
suppliers. Suppliers include both domestic and
international manufacturers and as the products are
more or less standardized in nature, retailers and
wholesalers have low switching costs, the powers of
supplier are moderate to low.

11. Buyers
 The consumers are now more sophisticated and
mature. As said by Carrefour, “they want it now and
they want it with the best service and the best
quality”. Consumers enjoy increasing choice of
products and increased price competition, and they
demand better and wider choices. They also exert
pressure on manufacturers and retailers to give
more relevant product information.

12. Competitors
o Kmart
o Target
o ShopKo
o Meijer
o Zellers
o Hart
o Real Canadian Superstore
o Giant Tiger
o Comercial Mexicana
o Soriana
o Costco

13. SWOT analysis
Strengths
Financial Strength:
Wal-Mart is the world's largest retailer with a turnover of more than
$137billion. CEO of Carrefour, Mr. Bernard said that, "but now, to be global
you need money. Not only to invest in new markets, but to keep up with the
competition at home.
Computer System:
Wal-Mart has one of World's best Retail Link computer systems to keep in
check inventories that have provided it a definite edge over its competitors
over the years.
Culture:
Strong work ethics and commitment towards consumers made every
employee an asset for the company.
Buying power:
Wal-Mart enjoys huge economy of scale as it has tremendous buying power,
most of its suppliers are working on international scenario like P&G, therefore,

14. SWOT analysis
Weakness
Liquidity Ratio and Financial Stability Ratio
Due to recent acquisitions in Germany, South Korea, Canada,
expansion of operations in USA and other countries and $ 2 billion
share buyback have resulted in very low quick ratio, also Debt Equity
Ratio is well above the critical level of 1 and is still going up

15. SWOT analysis
Threats
Hidden Legal Barriers:
As the France government have imposed significant legal barriers to
control the growth of department stores and hypermarkets to save
traditional small shops and for saving beauty of the environment
caused by sign boards (what are they called).These Trade barrier
poses significant treat for Wal-Mart to grow in France
Economic and Political Turbulence in Europe
• The ongoing economic war between European Union and USA
• War in Kosovo
• Political Turbulence in Germany
• Change in Currency Exchange Rates

16. SWOT analysis
Strengths
• Powerful Retail brand, Large scale of operations worldwide
• One Stop Retail destination
• Strategic business programs
• Efficient working capital management
Weakness
• Self Cannibalization
• Involvement in numerous legal issues
• Continuous Product Recall
• Community Relations Problem
Opportunity
• Global Food Safety Initiative Standard
• Increasing demand of Online sales
• Increasing opportunity in Growing economy
Threats
• Intense competition
• Price matching program by Target
• Foreign currency fluctuation

17. Strategies
 Strong Distribution, Inventory management system
 Differentiated pricing
 Cost advantage strategy
 IT advantage

18. Corporate Strategies
 Dominance in Retail Market
 Expansion in US and International market
 Creation of Positive Brand and Company
Recognition
 Branching into new sectors of retail

19. Key Success Factors
 Acquisition of McLane Company in year 1990
 Diversification in Food and Grocery retailing
 Razor thin margin – provides Great Value to
customer
 Acquire of PACE club Kmart

20. Conclusion
 Wal-Mart must adopt a friendlier corporate attitude
 It needs to relax anti-unionization policy
 Improve public perception that Wal-Mart can destroy
communities
 International expansion should be done with the
help of Local retailers

21. Thank you!