Walmart : CRAFTING & EXECUTING STRATEGY

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 " if you think about it from the point of

view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you're invisible. - Sam Walton
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WALMART
1962- Sam Walton, the founder opened the

companys first discount store in Rogers, Ark.

The company officially incorporated as

Wal-Mart Stores Inc. on October 31, 1969. company when it opened a Sam's Club near Mexico City

1991, Walmart became an international

Branded asWalmartsince 2008 Today 9700 stores and club locations in 28

countries employ 2.1 million 4/20/12 associates,

"Always Low Prices, Always "Save Money Live Better"

If we work together, well lower the cost

of living for everyonewell give the world an opportunity to see what its like to save and have a better life. - Sam Walton

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Source: 2010 Global Powers of Retailing report, published each year by Deloitte Touche Tohmatsu and STORES

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Walmart Stores U.S.

Wal-Mart is by far the largest retailer in the U.S. and

the world in terms of revenue generated.

With fiscal year 2010 sales of $405 billion Walmart Stores U.S. is the company's

largest division, accounting for $258 billion, or 63.8% of total sales for financial year 2010 55 different banners in 15 countries.
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It has more than 8,986 retail units and operates under

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Walmart International 5,261 stores and more than 730,000

associates in 27 countries outside the continental U.S.

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Walmarts Strategy
Multiple store formats Low everyday prices Wide selection A big percentage of name brand

merchandise

A customer friendly store environment Low operating costs Innovative merchandising A strong emphasis on customer

satisfaction

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MULTIPLE STORE FORMATS 1. Walmart Discount Stores

First discount store in 1962. Family apparel Today, there are 681 stores Healthy and

beauty aids

Electronics The size of an average store is 108,000

square feet.

Toys Lawn and garden Jewelry

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items Each store employs about 225 associates.

2. Walmart Supercenters
Developed in 1988 to

meet the growing demand for convenient, one-stop family shopping featuring our famous Every Day Low Supercenter Prices. groceries
Save your time and

money by combining a full grocery and our general merchandise

General
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merchandise

3. Walmart Neighborhood Markets

Offer a quick and

convenient shopping experience for customers who need groceries, pharmaceuticals, and general merchandise all at our famous Every Day Low Prices.

Fresh produce Meat and Dairy

products

Frozen foods Dry goods and

staples aids

Health and beauty Stationery and

First opened in 1998,

there are now 185

paper goods 4/20/12

4. Walmart Express Stores

The first two Walmart Express test stores

opened in June 2011 in Northwest Arkansas.

Created to offer low prices every day in a

smaller format store that provides convenient access for fill-in and stock-up shopping trips.
The stores give Walmart flexibility in

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5. Marketside
Opened in 2008, Marketside stores are small

community pilot grocery stores specializing in fresh, delicious meals at great prices.

Provide a fresh and convenient shopping

experience for busy people who want an easy answer to the question, 'What's for dinner?

Customers can shop for a variety of fresh

ingredients, restaurant-quality prepared 4/20/12 meals and their everyday favorite national

6. Walmart.com
Founded in 2000, Walmart.com brings the

convenience, great merchandise selection, friendly service and Every Day Low Prices of your neighborhood Walmart to the Internet.

Walmart.com features more than 1,000,000

products, plus easy-to-use music downloads and digital one-hour photo services

During the holidays, Walmart.com features

many special offers available only online. 4/20/12

7. Sam's Club
Opened its doors in Midwest City,

Oklahoma, in 1983.
Today, Sams Club operates 609 locations

nationwide. Typical clubs are about 132,000 square feet and employ about 175 associates.

A chain of membership-only

retailwarehouse clubsowned and 4/20/12 operated byWal-Mart Stores, Inc., and

Walmarts geographic expansion strategy

New stores were within 200miles of an

existing distributing center

Always expanded into adjoining

geographic areas, saturating each area, then move to another

Backward expansion: 1st it opened in

small towns surrounding a targeted metropolitan area before moving there

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Low Everyday Price

Customer viewed Walmart as the lowest

priced general merchandise retailer

Displayed low price tags, displayed We

sell for Less in store fronts, advertisements, logos, sign boards etc.

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Merchandising Innovations
Industry leader in testing, adapting, and

applying wide range of merchandising approaches

Active in testing and experimenting with

new merchandising techniques

Ideas for improvement were gathered from

employees, vendors, customers

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Advertisement
Lesser advertisement than other discount

chains

Relied primarily on word of mouth to

communicate its marketing message

Local TV, radio advertisement

Sams Club Stores- no advertisement

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Distribution network
Logistics Its the heart of the Walmart

operation
One of the largest private distribution

operations in the world.More than 40 Regional Distribution Centers. Each one is over 1 million square feet in size.

They operate 24/7 to keep our fleet of tractors

and trailers rolling.

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Approaches to strategy execution Use of technology

1974 onwards technology enabled 1989 established direct satellite links with

about 1700 vendors- allowed instant data exchanges and electronic purchase orders

1990 invested in IT and online systems 2003 developed and deployed

sophisticated IT systems and capabilities real time access to deatiled figures and leader in cost effective SCM
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Relationship with suppliers

Biggest customer of all its suppliers Bargained to get bottom prices Supplier characteristics Dominant in their category Grow with the company Full product lines Long term commitment to R&D Walmart standard for suppliers
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Store construction and maintenance

Worked more to benefit out of its

expenditure for new stores, store renovations, store fixtures

Ideas were solicited from vendors

regarding store layout, design of fixtures, space for effective displays etc

All stores were renovated and redecorated

at least once every seven years

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Superior customer service

Aggressive hospitality 10 foot attitude- encouraged associates to

take this pledge with him: "I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him.

5 things imparted while training to new

store personnel:

v Think like a customer

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Sundown Rule- why put off until

tomorrow what you can do today?

- Whether it's a request from a store across the country or a call from an associate down the hall, we do our very best to give our customers, and each other, same-day service

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Soliciting ideas from associates

Open Door - free to share suggestions,

ideas and voice concerns, whether its help with a problem, guidance or direction, or simply getting an answer to a question
Were all part of the same family the

Walmart family. And like family, we care. survey it gives every single associate a way to voice their ideas, suggestions and concerns.

Grass Roots Process - associate opinion

Servant Leadership- develop4/20/12 leaders who

Teamwork, Open Communication Mutual Support, Mutual Respect Walmart Cheer

Give me aW! Give me anA! Give me anL! Give me asquiggly! Give me anM! Give me anA! Give me anR! Give me aT! What's that spell? Walmart! 4/20/12 Whose Walmart is it?

3 basic beliefs and values

1. Respect for the Individual 2. Service to our Customers 3. Striving for Excellence

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Conclusion
Getting lowest possible price from its

suppliers

Close relationship with suppliers Win win cost savings through supply chain Lean and efficient internal operations Attention in store layout and

merchandising

Use of technology Nurturing a culture that thrived on hard

work

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THANK YOU

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