The WAL- MART story

By :

M.B.A (MKTG.)2007-2009
Rai Business School

MART – some facts Accolades and recognition How they did it WAL-MART in India –the Bharti Wal-Mart deal The Competition Do we have to fear WAL-MART. The future of mom and pop stores Will WAL-MART be a success. .Structure of the presentation WAL.

1.Puertorico.Nicaragua.Costa-rica.Guatemala and the U. Canada.El-salvadore.Argentina.Mexico.3 million people working Sales for 2006 estimated to be $ 1billion per day. .China.Founded in 1962 by Mr.Brazil.Sam Walton First store opened in Bentonville.Arkansas Today 6600 stores worldwide in countries like Honduras.K.Japan.

The Financial Times and Pricewater house coopers ranked it as the 8th most admired company in the world. . YEAR .YEAR .2002 Rated as the no.named Wal-Mart as the 3rd most admired company of America.1 company on the fortune 500 list. Presented with the Ron brown award for corparate leadership.2001 Fortune co.

Non dependence on any single vendor.selling branded products at low cost.What it takes to be a “WAL-MART ” The Winning strategy. . Reliablity on its own distribution system.

. An open door policy Introduced profit sharing in 1971.Intensive People focus “Associates” and NOT employees. Various schemes and programmes for associates : Incentive bonuses A discount stock purchase plan Promotion from within Pay raise based on performance and not seniority.

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Store level data sales were collected .analyzed and transmitted electronically on a real time basis. .communications and logistics were automated. Process like ordering .shipping .ROLE OF TECHNOLOGY Implemented a satellite net work system.

27 2006.On November.2007 . .first store in India.bharti enterprises and WALMART entered into joint venture of equal partnership to function in the „cash and carry‟ format. By Aug. Present status : Recruitment Negotiations with potential customers Market surveys are on.

WAL-MART Partnering with bharti will give Wal Mart access to the 8th largest retail market in the world valued at $320 billion.Aditya Birla group. Partnering with Wal-Mart will give other players a run for their money.Rahejas and RPG and new players like Reliance .Bharti In the market with old players like Pantaloons. .

Knowledge of where to get the real estate for the business. .Advantage bharti Huge ground network in the country already through its telecom business Knows the Indian landscape and understands the demographics in this country.

Advantage Wal-Mart Companies innovative information technology . . Highly efficient service channel management which makes it possible to buy directly from the producers. Company has tremendous sourcing efficiencies which will bring economies of scale from day one.

The competition M A R K E T P L A Y E R S .

INFINITY RETAIL The Tata group has partnered with Wool Worths . PANTALOONS BIG BAZAAR are rapidly expanding and are planning to open 100 stores by dec.convenience and speciality stores as well as business to business operations .2006.for servicing and technical support .electronic consumer durables.07 .luxury goods and financial and travel services.clothing .sell food .It opened the first store in Mumbai in Oct.RELIANCE It will operate hypermarkets.

DON’T FEAR INDIA ! .

In South korea – Had to sell all 16 stores. .Fear of Wal-Mart NO.)and sold all its 85 stores to Metro.4056 cr.NO WAL –Mart is not invincible Last year it has to fled from Germany and South Korea In Germany it lost $863 million (rs.

Unable to understand the customer insights well . Opened all stores in suburbs –customers were very reluctant to drive that far.Reasons Local German stores Aldi and Lidl –able to deliver good quality grocery at affordable prices.

14 different official languages. . Geographical challenges : India has 3 times more people then America Population density 11 times that of America. 28 States. but a hundred different markets. cultures and habits…. multiple ethnicities. 7 Union Territories. hundreds of dialects.India is not America…. India is one country.

.000) In 5 years than Wal –Mart has opened in 44 years . The big Indian plans… Reliance intends opening more stores (around 6.Tesco and Carrefour yet domestic retailers are strong.Look at China … The country has nearly 200 stores owned by Wal Mart .

Advantage retail BOOST EMPLOYMENT America has more Wal –Mart employees then high school teachers. CREATION OF WEALTH They pay producers more and charge consumers less. .000 people in next 5 Years. In China – employing 150. Resulting savings generate employment when they are spent on other goods and services.

Future of mom and pop stores Kirana stores offers services that are unmatched by organized retailers.P Their instant response to changing consumer needs. .S. Home delivery The U. Credit Personal suggestions Good relationships.

Customers are also hungry for new ways of shopping.WILL WAL-MART SUCCEED IN INDIA ??? IT WILL SUCCEED BECAUSE : It has the best know how to provide the right set products to the right set of customers. .

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SOURCE : BUSINESS TODAY RETAILER ECONOMIC TIMES THE WAL –MART WAY : DON SODERQUIST .