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Business strategy- Walmart

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BusinessStrategy and about Walmart Case

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Business strategy- Walmart

  1. 1. 1.What is Strategy? 2.A definition of Business Strategy Types of Business Strategy Business Strategy of Walmart Stores, Inc Conclusion 3. 4. 5. Nguyễn Thành Luân 11/14/2013
  2. 2. 1. What is Strategy? A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem using available resources.
  3. 3. Strategy bridges the gap between ends and means
  4. 4. Examples of Strategy Planning a plane trip • Call a travel agent • Use the website of a specific airline • Use a website that compares the rates of different airlines Finding a job • Using your current skills to find a new job • Becoming an apprentice for a trade • Going to college for a new career.
  5. 5. The Importance of Strategy attaining and maintaining a position of advantage over adversaries STRATEGY “a pattern in a stream of decisions” is about shaping the future" and is the human attempt to get to "desirable ends with available means"
  6. 6. 2. A definition of Business Strategy A business strategy is a business plan that takes place long-term in order to help achieve a specific goal or objective. Rapid Business Intelligence Success
  7. 7. Significance informatio nal Motivating changestimulating STRATEGY
  8. 8. Significance
  9. 9. Function
  10. 10. 3. Types of Business Strategy Cost leadership strategies Differentiate d products and services strategies Focus strategies
  11. 11. Cost Strategies pass along a lot of the benefits to customers in the form of lower prices a strategy available to any business Still be able to price products and services at a level high enough
  12. 12. Differentiated products and services strategies Sell a very unusual product or service Consumers happily pay the extra amount because they get so much more for their money The key is being able to charge the customers more for those special features than the special features cost firm
  13. 13. Focus Strategies is really a hybrid of the cost and differentiation strategies the firm can, through this focused approach, serve a particular market better than anybody else
  14. 14. 4. Business strategy of Walmart Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores
  15. 15. Company Overview • The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972 • Walmart Stores operate retail stores in various formats across the world
  16. 16. Company Overview Discount Stores US retail formats Supercentres Sam’s clubs Market side
  17. 17. Company Overview • • • Internationally, the company operates in Argentina, Canada, China, Brazil,India,UK etc Currently it employs 2.1 million people in US The company records revenue of $ 469.162 billion (FY 2013)
  18. 18. Business Description • Wal-Mart is the largest retail company in the world. • It operates retail stores in various formats worldwide. WalMart offers a wide assortment of merchandise at everyday low prices in its retail stores. • E-commerce websites services.
  19. 19. Business Description Walmart US Sam’s Club International Segment Business Segments
  20. 20. Business Description Mexico Japan The UK India
  21. 21. Business Description • Walmart's investments outside North America have had mixed results: In the United Kingdom, South America, and China are highly successful Whereas ventures in Germany and South Korea were unsuccessful
  22. 22. Business Description Products • • • • Services • Photo processing service • Cellunar service plan • Money order services Brands Dry and wet glocery Beverages Frozen food Jewellery etc • Walmart • Great value • Sam’s choice
  23. 23. Tesco PLC Metro AG Amazon Inc CVS Care mark COMPETITORS Staples Inc
  24. 24. SWOT Analysis • • • • STRENGTHS Powerful retail brands, large scale of operation worldwide One Stop Retail Strategic business programs Efficient working capital management OPPORTUNITY • Global food safety initiative standard • Increasing demand of online sales • Increasing opportunity in growing economy • • • • WEAKNESS Self Cannibalization Involvement in numerous legal issues Continuos product recall Community relations problem THREATS • Intense competition • Price matching program by target • Foreign currency fluctuation
  25. 25. Walmart business strategy Mission “to provide a wide variety of high quality,branded and unbranded products at the lowest possible price” WALMART'S AGGRESSIVE PRICING (Cost leadership) Efforts to procure products at the lowest prices possible from manufacturers Walmart products are usually priced 20% lower than those of its competitors
  26. 26. WALMART'S AGGRESSIVE PRICING Surplus • Generating more profits due to larger volumes sold Profits • Reinvested in facilities (equipment, technology)
  27. 27. WALMART'S AGGRESSIVE PRICING
  28. 28. MARKETING STRATEGIES
  29. 29. MARKETING STRATEGIES • • They also tailor their merchandise assortment and store experience to meet the specific needs of a broader customer base Currently, WalMart has created over 125,000 new jobs and the operation of over 3,000 international stores, buying products from 70 countries Walmart Employees
  30. 30. MARKETING STRATEGIES • Increasing in segmentation in order Customer Data to better serve the customers Radio frequency ID tags and Echeck conversion • Improving inventory management and reduced cost
  31. 31. WALMART CUSTOMER SERVICE Thinks like customer Give a good value in product for customer Ensures that customer enjoy themselves in process Sell what customer wants to buy Exceeds customer expectation
  32. 32. WALMART CUSTOMER SERVICE to have almost every aspect of their business centered on its customer handles their customer’s complaints in a fast and friendly manner
  33. 33. WALMART GROWTH STRATEGY Maintain current net sales growth of approximately 12 percent per year Expand into international markets that have large population centers Increasing the overall efficiency of the organization by reducing operating costs or cost of goods sold
  34. 34. WALMART STORES, INC
  35. 35. 5.Conclusion • The aim of a business strategy is to strengthen a particular business so that its performance increases and, in turn, the business becomes more profitable.  Without a business strategy, a business has no guide to follow and has an increased risk of not succeeding. • Sam Walton - founder of Walmart - whose business style is that customers and product quality is paramount has an extremely effective business strategy for Walmart. It has now become a classic example for art of successful business plan.
  36. 36. GROUP

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