case study

1. Wal-Mart and Vlasic Pickles

3. Logos of Walmart

4. I. Current Situation
Current Performance
• 1962: Walten Brothers opened fist Walmart in
Arkansas
• 1970: Walmart became public
• 1990: 1st National retailer
• 1991: International Expansion
• 1993: Creation of “Great Value”
• 2003: Largest corporation in the world

5. Vision & Mission
“To help people
save money so
they can live
better”
Mission Vision
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. II. Corporate Governance
Board of Directors
Roger C. Corbett
Retired CEO and Group
Managing Director of
Woolworths Limited
S. Robson Walton
(Rob Walton)
Retired Chairman of the Board of
Directors
Jim C. Walton
Chairman and CEO of
Arvest Bank Group, Inc.

7. III. External Environment
Political
• Policies on economy.
• Trading agreements
Economical
• Unemployment Rate.
• slightly increase in
consumption.

8. Cont…
Social
• Faster pace of live-
Efficiency
Technological
• Use of IT technologies
• Online shopping.

9. Cont…
• Industrial Environment:
Potential New Entrants: (High)
 High capital requirements.
 Customers mainly look for products with low prices and
standard quality.

10. Cont…
• Bargaining power of Suppliers: (Low)
 Wal-Mart purchases huge quantities of products from its
suppliers.
 Low switching costs from one supplier to another.
 Products have a lot of substitutes.

11. Cont…
• Rivalry among existing competitors: (High)
 Competitors have similar sizes.
 There is a high production capacity

12. Cont…
• Threat of Substitutes: (High)
 Prices and quality of substitute products are very
competitive.
 Performance of substitute products are similar.

13. Cont…
• Bargaining Power of Customers: (Low)
 Wal-Mart’s main customers are individuals.

14. Opportunities
O1. Expanding into new
geographic areas.
.25 3.90 0.98 New market
O2. Increase online sales .20 3.7 0.74
Threats
T1. Adverse demographic
changes
.20 4.10 .82
T2. Restrictive trade policies .10 3.95 0.40
Total 1.00

15. IV. Internal Environment
Corporate Culture
Dedication
to customer
satisfaction
Strong
work ethic
Frugal
operating
practices

16. Organizational Activities Analysis
Marketing Mix
Product
Price
Promotion
Place
Finance
• Wal-Mart employs 1.6
million associates
worldwide in more than
3,700 stores in the US
• Revenue in 2005
was312.65B

17. Cont…
Research and Development:
• 600 new U.S. and international stores.
• It has set up support offices in India for R & D

18. Core Competency
Culture
Distribution
Low Cost
Operations

19. Walmart Inc Internal Factor Analysis
Summary
Strengths
S1. Strong financial condition. .20 4.00 0.80 High and customer
satisfaction lavel
S2. Good supply chain
management.
.20 4.10 0.82 Good R&D efforts
Weaknesses
W1. Behind rivals in e-
commerce.
.20 3.90 0.78 More focus on
development
W2. Doesn’t survey customers. .10 3.05 0.31 Not focusing on a
specific strategy.
Total 1.00 3.96

20. (SFAS Table)
S1. Strong financial condition. .20 4.20 0.84
S2. Good supply chain management. .20 4.00 0.80
W1. Behind rivals in e-commerce. .20 3.90 0.78
W2. Doesn’t survey customers. .10 3.05 0.31
O1. Expanding into new geographic
areas.
.25 3.90 0.98
O2. Increase online sales .20 3.7 0.74
T1. Adverse demographic changes. .20 4.10 .82
T2. Restrictive trade policies .10 3.95 0.40
Total 1.00

21. Identification of strategic Issues
(Tows Matrix)
Internal factors
External
factors
Strength (S)
Strong financial condition.
Good supply chain
management.
Weakness (W)
Behind rivals in e-
commerce.
Doesn’t survey customers.
Opportunities (O)
Expanding into new
geographic.
 Increase online sales
SO Strategies
By increasing online sale,
it’s possible to capture more
market share.
WO Strategies
By expanding new geographic
areas it’s possible to do
survey on customer.
Threats (T)
Adverse demographic
changes.
Restrictive trade policies.
ST Strategies
Due to having better supply
chain management it’s
possible decrease the effect
of demographic change.
WT Strategies
Doing more e-commerce
there is possibility to change
trade policies.

22. Strategic Alternatives &
Recommendation
Alt-1: By increasing online sale, it’s possible to capture more
market share.
Pros: Able to get more profit
Cons : Needed much time to finalize.
Alt-2: By expanding new geographic areas it’s possible to do
survey on customer.
Pros: Making the market more globalized.
Cons : Need to do special recruitment for employee.

23. Cont…
Alt-3: Due to having better supply chain management it’s
possible to decrease the affect of demographic change.
Pros: Possible to capture more specialized customer
Cons : Disorder may found among the employee and customer.
Alt-4: Doing more e-commerce there is possibility to change
trade policies.
Pros: Trade policies may become more flexible.
Cons : More time need to be given

24. Evaluation and Control
• Wal-Mart’s large size enables the company to purchase
supplies at low prices through bulk purchases, thereby
providing lower prices to consumers but forcing many smaller
retailers out of business.