Wal-Mart – Competing in the Global
Market
Soumya Mounica
Vinay Koka
Ankit Modani
Lini Matheww
Harshita Rao
M.Praveen Kumar Naidu
Wal-Mart
• First Store opened at Rogers , AR in 1962
• World’s largest Private Employer , fourth
only to China’s Army,UK,and Indian
Railways
• Wal-Mart sells 20% of retail grocery in US
and 45% of total Toys sold in US.
• Its bigger than Europe’s Carrefour , Tesco
& Metro AG combined.
Wal-Mart Subsidiaries
• Wal-Mart Stores Division US
• Wal-Mart Discount Store
• Wal-Mart Supercenter
• Wal-Mart Neighborhood Market
• Sam’s Club
• Wal-Mart International
• Private Labels (Sam’s Choice ,
• Great Value ,Equate ,Smart Price)
That’s Wal-Mart
• Founder Sam Walton & Family – owns 40% of Wal-
Mart
• Headquartered at Bentonville , Arkansas , US
• Total No. of Stores – 8576 Stores
Stores in US – 4495 Stores in US
Outside US – 4081 Stores in 15 Countries
• Total Employees – 2.1 Million
• Total Sales – 401.2 billion in 2009
• Net Income – 14.3 billion in 2009
THE HERO SAMWALTON
• Sam Walton’s & wallmart’s business
was on values and morals.
• Respect – for the customer,
associates, and suppliers.
• Open door
• Gross root process
• 3 basic beliefs& values
• -respect for individual
• -service to our customer
• -striving for excellence
• 10-Foot rules
• Team work
• Wall-mart cheer
Walton used to fly from store to store making personal visits.
The management at Wal-Mart advised by Walton to break all
the rules.
Even the shop assistants and the staff of the company were
referred to as associate.
Wal-Mart
To give ordinary folk the chance to buy the same thing as rich people.
Mission/
Vision
1. Lowest prices across-board the product lines
2. Product USP: core competency
Product Strategy
•Low prices, In-stock positions, Customer service
1. Respect for the individual
2. High standards of service
Service Strategy
3. Constant strive for excellence
middle-class, lower middle
Segmentation
Consistent positioning- “Always low prices”
Positioning
1. Food retail
2. Non-Food retail
Activities
3. On-line food retailer
Intangibles Personalized customer service
Co-branding Co-branding with McDonalds
Wal-Mart :the people behind
Chairperson- S.Robson Walton
CEO-Michael terry Duke since 1995
Chairman executive committee: Harold Lee Scot .jr
Wal-Mart Marketing Strategy
Sector Strategy: Diversification
Diversified into Wal-Mart
Tire & Lube Express, Wal-Mart Optical, Wal-
1. Non-food Mart Pharmacy, Wal-Mart Vacations, Wal-
Mart's Used Fixture Auctions
2. Discount format Wal-Mart Stores,
3. E-commerce WalMart.com
4. Wholesale Sam’s Club
5. Expansion abroad 15 international locations
Development strategy
• Re-positioning: Complete Shopping Experience & Value-
for-money Dept Store “Way Beyond Just Low Prices”
• Enhancing Product Range: Full-line Dept Store
• Differentiation: Price-based - Best Quality At The
Charged Price
• Market-broadening: Store-type Adaptations To Local
Culture
• Self-branding: Brand-name Is Extended To Popular Items
• Ancillary Business: Hair-cuts, Optics, Hearing aids
Strength lies in supply chain
• Vendor-Managed Inventory
• Enterprise resource planning
• Customer relationship management
• Sales force automation
GOING GLOBAL
WHY GLOBAL - To survive…
Why was growth so important?
• Capital market expectations-continuous sales and profits.
• Expectations of its own employees-ESOPS.
• Saturated domestic market.
• U.S. just 4% of world's population-(rest 96% -already dented)
• Emerging markets-tremendous opportunities.
Consumer Global Brand Opportunities: Wal-Mart
Wal-Mart – Market Share / Competitors
• Wal-Mart is three times big than
its nearest competitor Carrefour
SA
• z
LATEST GLOBAL ENTRIES…
Retail Firm Date of
Country Units as on Jul2009 partner/acquired Entry
140 CSU(CARHCO) September 2005
Costa Rica
63 CARHCO September 2005
El Salvador
137 La Fragua(CARHCO) September 2005
Guatemala
44 CARHCO September 2005
Honduras
40 CARHCO September 2005
Nicaragua
*****
India
Challenges in India
• Protests from small businesses (kirana )
• FDI restrictions.
• India’s poor infrastructure
• Poor public image – predatory pricing , unemployment
• India’s diversity and heterogeneity
• Competition from Indian Retailers
Present Scenario
• Wal-Mart joint venture with Bharti
• 15 large wholesale outlets over the next seven years
• Entering as a wholesaler, because Indian law does not allow
multi-brand foreign retailers to sell directly to consumers
• Govt. of U.P forced several top retailers to shut shop after
local kirana stores triggered unrest.
• Other foreign retailers : Carrefour - Wadias ,Debenhams -
Future group
• ICRIER study – 12 million stores
