3. The Retail Industry
• Mature market
• 250 retailers operated sales of $4 trillion in 2010
• Dynamic: 5% sales growth
• Retailers start from home country and then go global
Five Porter’s forces analysis
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
4. Walmart:
The World Retail Leader
Main competitors
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
5. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors support Advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Yes No No No
Diversification
HR Yes Yes Yes Yes
Management
Retail Industry
Competitive International
Social Actions What’s Next ?
Advantages Expansion
7. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors support Advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Yes No No No
Diversification
HR Yes Yes Yes Yes
Management
Retail Industry
Competitive International
Social Actions What’s Next ?
Advantages Expansion
9. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors support Advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Yes No No No
Diversification
HR Yes Yes Yes Yes
Management
Retail Industry
Competitive International
Social Actions What’s Next ?
Advantages Expansion
10. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors Support advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Diversificatio Yes No No No
n
HR Yes Yes Yes Yes
Management
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
12. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors Support advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Yes No No No
Diversification
HR Yes Yes Yes Yes
Management
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
13. VRIO Analysis
Valuable Rare Inimitable Organization Competitive
KFS factors Support advantage
Good price Yes Yes Yes Yes
positionning
Supply chain Yes Yes Yes Yes
Integration
Market Yes Yes Yes Yes
Proximity
Local Yes No No No
adaptation
Customer Yes No No No
service
Yes No No No
Diversification
HR
Yes Yes Yes Yes
Management
Retail Industry
Competitive International
Social Actions What’s Next ?
Advantages Expansion
14. SWOT Analysis
Strengths Weaknesses
• Strong financial resources • Controversial HR policies
• Powerful brand awareness • Anti-union reputation
• Sophisticated IT-based control
systems
• Customer focused
• Strong corporate culture
Opportunities Threats
• Serving new market segments • New national competitors
• Increase online sales • Stricter regulations and trade
• Entering new international policies
markets • Crisis context
• Crisis context
Retail Industry
Competitive International
Social Actions What’s Next ?
Advantages Expansion
15. Specialization of Processes
Purchase Distribution Sales
Imports from Strong in-house Strategic alliances
low-cost countries distribution centers for better coverage
IT activities
R&D
Outsourcing
in India
Retail Industry
Competitive International Social Actions What’s Next ?
Advantages Expansion
16. Entering new markets
A CAGE Analysis
2 5
4
1 6
3
6
3
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
17. Varied modes of entry
with mixed success
Joint Venture
Acquisition of a local partner
Greenfield operation
Retail Industry
Competitive International Social Actions What’s Next ?
Advantages Expansion
18. Organization and management
Centralization called into question
Aggregation Adaptation
Standardized processes Local management
Centralized procurement Freedom in hiring
IT-based HR monitoring
Walmart.wmv
Retail Industry
Competitive International Social Actions What’s Next ?
Advantages Expansion
19. Walmart’s social duty
• 2.1M job opportunities worldwide
• Shift US jobs overseas
• CSR actions for better image
Competitive International
Retail Industry Social Actions What’s Next ?
Advantages Expansion
20. What’s Next ?
• Making sure of meeting their promises for 2015
• Build on new competitive advantages : improve
customer experience, local taste adaptation
• Strenghten market presence in Africa and India
Competitive International
Retail Industry
Advantages Expansion
Social Actions What’s Next ?