Welcome to the Presentation on

Team Members
 Aktanur Nahar (Student ID: 18111006)
 Tariqul Islam (Student ID: 18111007)
 Zahidul Haque (Student ID: 18111014)
Presentation Outline
 Company Background/History (Aktanur)
 Company Strategic analysis (Tariqul)
 Future Recommendations (Zahid)
 References
Introducing Walmart
 Walmart Inc. is an American multinational retail corporation that operates a chain of
hypermarkets, discount department stores, and grocery stores.
 Headquartered in Bentonville, Arkansas,
 The company was founded by Sam Walton in 1962 and incorporated on October 31,
1969.
 Net income: 6.67 billion USD (2019)
 CEO: Doug McMillon (Feb 1, 2014–)
 Owner: Walton family (51%)
 Headquarters: Bentonville, Arkansas, United States
 Subsidiaries: Sam's Club, Flipkart, Asda Stores Limited, MORE
 Did you know: Walmart is the world's third-largest employer by number of employees
(2.3 million). 
Walmart Mission and Values
Mission
 Walmart’s mission is saving people money so they live better.
Everyday low prices (ELDP), anytime and anywhere is the
keystone of Walmart’s strategy
Core beliefs
 Service to our customers
 Respect for the individual
 Strive for excellence
 Act with Integrity
Walmart Background
Walmart U.S.
 Stores in 50 states and Puerto Rico
 Store formats – Walmart Supercenter, Walmart Discount Store,
Walmart Neighborhood Market
Walmart International
 Operates in 27 countries outside U.S. with more than 6100 stores
 E-commerce websites in 11 countries
 Employs 2.2 million associates worldwide with fiscal year 2015 net
sales of $482.2 billion

Sam’s Club
 Operates as warehouse membership in U.S. and around the world
History Timeline

1960s
 1962: Sam Walton opened first Walmart store in Rogers, AR.
 1967: Opened 24 stores with $12.7 million in sales
 1967: Wal-Mart Stores, Inc. was incorporated

1970s
 1970: Became a publicly traded company; it’s first stock was
sold at $16.50 per share
 1971: Opened first distribution center and home office in
Bentonville, AR
 1972: 51 stores with sales of $78 million
History Timeline
1980s

 1980: Reached 1 billion in sales with 276 stores and 21000

employees
 1983: First Sam’s Club opened in Midwest city, OK
 1987: Install largest private communication system
 1988: First Walmart’s Supercenter opened
History Timeline
1990s

 1991: Through a joint venture with Mexican company Cifra;

Walmart opened Sam’s Club in Mexico city
 1992: Sam Walton passed away
 1993: Walmart celebrated $1 billion sales week
 1994: Expanded into Canada
 1996: Entered in China
 1998: The neighborhood market format stores opened in
Arkansas
 1999: Opened in United Kingdom
History Timeline
2000s

 2000: Walmart.com came to existence

 2002: Opened in Japan
 2006: Introduced $4 generic-drug program
 2007: Site to store service launched
 2010: Bharti Walmart, joint venture opened in India
 2011: Entered in South Africa through acquisition of
MassMart
 2014: Walmart opened more than 11,000 stores in 27 countries
and employed 2.2 million associates
Walmart logo history
Walmart’s Strategy
We understand not only what our customers want and need, but also where they want it
and how they want to experience it.

 Price, access, assortment & experience drive a

customer’s choice of retailer.
 Historically, Walmart led on price and assortment
 Invest to differentiate on access
 Competitive on assortment & deliver a great
experience
Walmart’s Operating Segment
•Walmart U.S. is the largest segment and operates retail stores in all 50 states in the U.S.,
Washington D.C. and Puerto Rico, with three primary store formats, as well as digital retail.
Walmart U.S. generated approximately 62% of total net sales in fiscal 2016*. Walmart U.S. has
historically contributed the greatest amount to the Company's net sales and operating income.

•Walmart International is the second largest segment and consists of operations in 27 countries outside
of the U.S. and includes numerous formats as well as digital retail. Walmart International generated
approximately 26% of our fiscal 2016* net sales.
•Sam's Club consists of membership-only warehouse clubs and operates in 48 states in the U.S. and in
Puerto Rico, as well as digital retail. Sam's Club accounted for approximately 12% of the fiscal 2016*
net sales. As a membership-only warehouse club, membership income is a significant component of
the segment's operating income.
Track record of delivering value
Walmart Revenue (2006-2019)
Walmart Net Income(2006-2019)
Walmart’s Strategic Problems
 Same-store sales slump and slow sales growth overall
 Worker satisfaction
 Wages and benefits
 Store closures
 E-commerce
 Competition with Amazon
 International growth
Walmart and China
 Strategy problems – continued
 Consumer confidence
 Food Safety
 Mis-labeled pork resulted 2 weeks closure time for 13 stores
 Cited for selling perishable items after expiration date
 Tainted donkey meat
 Big box layout versus street- market set up
Walmart and China
 Entered the Chinese market in 1996

 Represents growth potential

 Sales are growing, but do not match market growth

 Strategy Problems
 Customer decisions to buy
 Price driven decisions versus product driven decisions
Walmart and Mexico
 Strategy problems
 Apparel challenging in Sam’s Club division
 E-commerce growth
 Grocery delivery
 Online ordering
 Improve public perception
 Building on historic sites
 Bribery charges
Walmart: Strengths
 Strong market presence
 Value/Low pricing structure
 Supply chain management systems
 Focus on international expansion
 Economies of scale
 Increasing focus on social responsibility
 Commitment to support American Jobs
 Favorable access to products through large scale sales
Walmart: Weaknesses
 Employee treatment
 History of lawsuits
 Product quality issues
 Fallen behind the curve in the e-commerce word
 Low presence in urban areas
 Difficulty to gain competitive advantage when functioning as a price taker
 Social responsibility blunders in the past
Walmart: Opportunities
 Improving image regarding employee treatment
 Walmart being the biggest offline retailer has opportunities to expand it’s presence
in online retailer
 Walmart should increase it’s presence in third world developing country like
Bangladesh, Srilanka, Myanmar etc.
Walmart: Threats
 Economic recession
 Various Local competitors
 Govt. Regulations
 Shifting consumer taste
Competitive Advantages
 Aggressive pricing structure during troubling economic times
 Highly effective, and constantly improving, supply chain management system
 Attempt to repair self image with regard to employee relations
 Focus on the global market with international division
Recommendations
 Increase presence in the online sector
 Make efforts to show good-faith and will toward employees
 Focus on improved quality of products, particularly those bearing the company
brand name
 Use acts of social responsibility to help offset the negative images associated with
the closure of local establishments
International Strategies
 Wal-Mart has struggled in international markets
 brick-and-mortar retail market in China
 existing, low-cost retailers in Mexico
 Consider other corporate strategies (such as diversification, M&A, vertical
integration)
 Wal-Mart must view each market as unique
Corporate Diversification
 Diversification through acquisition and investments
 Own 51% stake in Yihaodian
 Acquired majority share of Cifra, Mexico’s at-the-time largest grocer retailer
 Diversify their corporate offerings build strong brand recognition outside United
States
Corporate Diversification cont.
 Wal-Mart must be wary to not let their corporate offerings around the world go
unmonitored
 Consider organized structure
 Pursuing a multidivisional approach to the organizational structure
Vertical Integration &
Strategic Alliances
 Wal-Mart can create both vertical integration and strategic alliances
 Wal-Mart offers partnerships to suppliers
 Requires suppliers to invest in Electronic Data
 Interchange systems to facilitate order processing
Vertical Integration &
Strategic Alliances cont.
 Looking at integrating final distribution
 North America, Wal-Mart acts as the final distributor
 Open to exploring the online marketplace with existing online retailers
 Yihaodian alliance will bring Wal-Mart into the ecommerce sector in China
Lessons Learned
Walmart in China

 Chinese consumer buying decisions are not always price driven

 More inclined towards tailor-made products and a shopping environment that
reflects local preferences
 Walmart’s “Every Day Low Cost” (EDLC) strategy has been regarded as cheap
and unsafe in China
 Local infrastructure remains a challenge to the supply chain
 Locally-based, copy cat, Sun-Art has demonstrated viability of the cost
leadership model
Lessons Learned
Walmart in India

 Walmart adjusting India Strategy

 Moving to wholesale model
 In retail market, regulating require 30% of goods must come for small and
medium Indian suppliers
 Government now has clear rules forbidding Foreign Direct Investment (FDI) in the
multi-brand retail trade
Business Strategies- Cost Leadership
Cost Leadership
 Cost leadership model does not appeal to every market
 Creates negative perceptions in some cultures of poor quality
 Bulk purchasing does not appeal to all
 Japanese prefer specialty shops, as they do in many emerging markets
Business Strategies- Differentiation

 Walmart achieves differentiation on the basis of several factors

 Indian partnership with Agra
 Mexico, central locations near historical sites
 Globally, offering supersize grocery stores
 Data-driven distribution channels and inventory management
 Some types of product differentiation are likely to very likely to be costly to
duplication, creating barriers for new entrants
Business Strategies- Differentiation

 Effective differentiation strategies come down to achieving the right customer

perceptions
 Understanding cultural norms critical to achieving differentiation in a market
 Create value that aligns with market-based customer preferences
 Requires consistency in messaging
Business Strategies- Flexibility

 Complexities of international market dynamics have business strategies that include

some level of flexibility
 Walmart of pursued international expansion executing strategies that allow the
company to adapt to market changes
 Option to re-start-in India, Walmart moved from traditional, multi-brand retail
to wholesale model, in response to local regulations
 Option to contract – In China and Mexico, Walmart has had to contract some
locations
Business Strategies- Flexibility

 Complexities of international market dynamics have business strategies that include

some level of flexibility
 Walmart of pursued international expansion executing strategies that allow the
company to adapt to market changes
 Option to re-start-in India, Walmart moved from traditional, multi-brand retail
to wholesale model, in response to local regulations
 Option to contract – In China and Mexico, Walmart has had to contract some
locations
Recommendations

 Continue to pursue corporate strategy of market diversification

 Leverage track record of success
 Consider global expansion into one or multiple developing countries
 Eastern Europe
 Southeast Asia
 Work closely with both traditional and modern trade outlets
Recommendations

 Partner with well known regional retailers in new markets to accelerate acceptance
 Consider differentiation strategy based on distribution channel with company-owned
and/or strongly controlled transportation and logistics when entering new markets
 Utilize mix of cost leadership and differentiation strategies based on local market
dynamics
 Pursue flexible strategies that allow growth, contraction and restarting based on
complex global market dynamics
Thank You
Q/A