PRESENTED BY

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HISTORY
• Wal-Mart is an American public distribution that runs a chain of large, discount department stores. • It is the world's largest public corporation by revenue, according to the 2008 fortune global 500. • The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. • Wal-Mart is the largest private employer and the largest grocery retailer in the United States. The company has 1.9 million employees in more than 44 countries. As of the end of 2003 it had 4,688 stores worldwide.

Business Segments

Wal-Mart has two types of divisions – • Retail divisions and • Specialty divisions. Retail divisions are further classified into - Wal-Mart Stores, Sam's Clubs, Neighborhood Market, International and walmart.com. The specialty division are divided into - Tire & Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, Wal-Mart Vacations and Wal-Mart's Used Fixture Auctions.

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Present in 15 countries Walmax in Mexico ASDA in UK The Seiyu Co. Ltd in Japan Wholly owned subsidiaries in Argentina , Brazil , Canada ,Puerto Rico

Walmart Journey Till date

Growth Journey of walmart (1970-2003)
During the 1970s. • Wal-Mart’s sales increased from $31 million to $1.2 billion, a signification growth rate of 287% & the number of Wal-Mart stores increased from 32 to 276. During the 1980s • Wal-Mart’s sales increasing at compounded annual rate of over 36%. • Introduction of the Sam’s Wholesale Clubs in 1983, and the Hypermart (which was later known as Super Center) in 1987. • Made heavy investments in IT. In 1987, Wal-Mart installed satellite communication systems costing an estimated $700 million. • In 1989, Wal-Mart stared building a huge database of customer information in its data warehouse system.

During 1990s • Introduced customer information kiosks in its stores in 1996. During 2000 • Wal-Mart was registered as one of the world’s largest companies, with revenues of $165 billion in fiscal 2000, and • • Launched the ‘store of the community’ program, By 2003, Wal-Mart, was the world’s largest company, with revenues in fiscal 2002 amounting to $244.5 billion. • It does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined.

What Wal*Mart says
Our Purpose We save people money so they can live better. Find out what we're passionate about, our strengths, and our reason for being. Our History It all began in 1962 in Rogers, Arkansas. And it’s been one incredible journey. Come along for the ride; the line forms here. Our Culture What is “Culture?” It’s how we treat each other; it’s our special way of doing business. It's what makes us one of the world's most-admired companies. Find out why, right here. Our Principles Our founder Sam Walton gave our company a sense of honor and a set of values that are still very important to us. Starting with Sam’s 3 Basic Beliefs, here’s what makes us proud to be part of the Wal-Mart family.

Wal-Mart
Mission/ Vision
To give ordinary person the chance to buy the same thing as rich people.

Product Strategy 1. Lowest prices across-board the product lines
2. Product USP: core competency: Low prices, In-stock positions, Customer service, globally-sourced business model

Service Strategy

1. Respect for the individual 2. High standards of service 3. Constant strive for excellence middle-class, lower middle Consistent positioning- “Always low prices” 1. Food retail 2. Non-Food retail 3. On-line food retailer Personalized customer service

Segmentation Positioning Activities

Intangibles

Communication through IT
• Electronic Data interchange (EDI) systems: minimizing the incidences of stock –outs and enabled better inventory management. • • • Satellite communication systems & GPS Database of customer information in its data warehouse system Introduced an innovative hand-held product called 960

WALTON’S RULES
• Rule # 1: The customer is always right. • Rule # 2:If the customer happens to be wrong, refer to Rule # 1.

CUSTOMER CENTRIC • Sundown rule. • 10-foot rule. • Rollback prices • Special buys

CONTD…
• Keep the store open later than most other store, especially during Christmas season • Moonlight Madness Sales • Great Return Policy • Integrated online and offline business • Walmart credit card • Special Buys • Aggressive Strategy:
– Employees were encouraged to provide customer service which was beyond their expectations. – Regular customers at Wal-Mart were made to feel special by being addressed by name

Walmart Cheer
Sam Walton, founder leads the Walmart cheer • Give me a W! Give me an A! Give me an L! Give me a squiggly! Give me an M! Give me an A! Give me an R! Give me a T! What's that spell? Walmart! • Whose Walmart is it? It's my Walmart! • Who's number one? The customer! Always!

Walmart Formats:

Walmart Discount Stores • Sam Walton opened his first Walmart discount store in 1962. Today, there are 810 stores offering a pleasant and convenient shopping experience across the United States. The size of an average store is 107,000 square feet. Each store employs about 225 associates. • Stores feature wide, clean, brightly-lit aisles and shelves stocked with a variety of quality, value-priced general merchandise, including: Family apparel ,Automotive products, Health and beauty aids, Home furnishings, Electronics, Hardware ,Toys, Sporting goods, Lawn and garden items, Pet supplies, Jewelry, House wares.

Walmart Supercenters
• Supercenters were developed in 1988 to meet the growing demand for convenient, one-stop family shopping featuring our famous Every Day Low Prices. It saves time and money by combining a full grocery and our general merchandise under one roof. There are 2,737 Supercenters nationwide, and most are open 24 hours. Supercenters average 187,000 square feet and employ about 350 or more associates. • Supercenter groceries feature: Bakery goods, Deli foods, Meat and dairy products, Frozen foods, Fresh produce, Canned and packaged goods, Dry goods and staples, Condiments and spices Beverages, Household supplies

Walmart Neighborhood Markets
• 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. First opened in 1998, there are now 151 Neighborhood Markets, each employing about 95 associates. A typical store is about 42,000 square feet. Neighborhood Markets feature a wide variety of products, including: • Fresh produce Deli foods Meat and dairy products Bakery items Frozen foods Canned and packaged goods Dry goods and staples Condiments and spices Health and beauty aids Pet supplies Stationery and paper goods Household supplies Drive-through pharmacies One-hour photo centers

Marketside
•Opened in 2008, Marketside stores are small community pilot grocery stores specializing in fresh, delicious meals at great prices. In these stores, customers can shop for a variety of fresh ingredients, restaurant-quality prepared meals and their everyday favorite national brands - even freshly baked breads and a wide assortment of wines. It provide a fresh and convenient shopping experience for busy people who want an easy answer to the question, 'What's for dinner?'

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-touse music downloads and digital one-hour photo services. And, adding more great products every day. •During the holidays, Walmart.com features many special offers available only online. It’s also a convenient place to find out about exciting in-store holiday specials. •With innovative “Site to Store” program, one can purchase items at Walmart.com and then have them shipped free to your local store for pickup.

Helping People Make A Difference
Wal-Mart doesn’t only help their customers at their stores but they do help their customers with their life.
• Provides scholarships

• Helps children’s hospitals

• Provides money to fund raisers

• Cares about environment

Walmart has been criticized by….

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some of the community groups, women's rights groups, Grassroots organizations, and labor unions

International Operations

It

results to a quarter of Wal-Mart's revenue which is $401 Billion.

Reasons for International Operations
• • • Slowing down of it’s per square footage growth in US Stop cannibalization & continue expansion Opening new domestic stores led to an approximate 1.5% decline in comparable store sales.

PROBLEM FACED…..

Problems in Operating Environment.

Problems in External Environment.

Problem of cultural mismatch.

Steps Taken
• Acquiring local retail chains example- Trust-mart in China & Sonae chain in Brazil • • • 75% of stores opened in 2009 were international stores At present 3000+ stores outside US Planning to open 550-600 new stores outside US in 2010.

Some other strategies
• Manufacturing in China Makes Wal-Mart Vulnerable to Currency Rate Changes. • • • Wal-Mart Uses Large Size to Maintain Low Cost Leadership. Wal-Mart Is Tailoring Merchandise Offerings by Region. Emphasis on private labels.

Presence in India too…….
• Wal-Mart has opened its cash-and-carry joint venture in india with telecom giant Bharti Enterprises and is called as “Best Price Modern Wholesale”, and the store sells everything from bed-sheets to ear buds. • It has come up at an initial cost of $7 million (nearly Rs 350 crore) and provides 500 direct jobs.It has tie-ups with 30,000 retailers and 8,000 suppliers across the country. • • It has also tied up with Kotak Mahindra Bank to offer "business cards" with which customers can shop on credit for 14 days Fifteen more such merchandise stores in north India will be there in the pipeline for the next 2-3 years.

• 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 Retailors includingPantaloon,Shopper’s Stop ,Piramals • Regional governments are very strong politically

India allows FDI in cash-and-carry wholesale stores which cater to retail store owners, offices and institutions instead of retail customers.

SWOT ANALYSIS (GLOBAL)
• • • • • • • • Strength Efficient supply chain management Targeted marketing Service innovation and technology Growth through adaptability. E-tail’s continued development Least cost of packaging strong penetration strategies Infrastructure (financial strength) Opportunity •Many countries are still left •Unorganized retail •Globalization (diminishing trade barriers) •Cold Storage market •Increase in consumer purchasing power •E-business •Unemployment Weakness •Poor public image •Late entrant in international market. •Unable to adapt to different countries • Strict labor laws •Were unable to handle media •High law suits against the company. •Low penetration in European union

Threats •Terrorism •Competitors •Negative publicity •International laws against anti dumping •Campaign against anti competitive practices

Awards & Recognition
• Ranked #1 Consumer Staples Company - Carbon Disclosure Project (CDP) 2008 report and scored 89 out of a possible 100 • Corporate Energy Conservation, Energy and Environment Award • 2009 Green Choice Award • 2009 Sustainability Excellence Award • Top 50 Companies for People with Disabilities • Top Organizations for Multicultural Business • Number One Most Admired Company in America • Best Place to Work in the United Kingdom (ASDA) • Top Organizations for Multicultural Business

Photo Gallery

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www.walmartfacts.com www.gartner.com www.forrester.com www.hoovers.com www.wikipedia.com www.tsmg.com www.finance.yahoo.com www.ficci.com

Different logos used by Walmart in chronological order Thank You

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