Walmart, Walmart Facts, Presentation on Walmart

1. WALMART

3.  The retail industry is responsible for
distribution of finished products to the
public.
A retailer purchases goods or products in
large quantities from manufacturers
directly or through a wholesale, and then
sells smaller quantities to the
consumer for a profit.

4.  Emerged in the U.S in the 18th century.
 Developed only in those areas that had a population of
above 5000.
 Of the world’s top 10 retail companies in terms of sale, six
are American.
 Major retail giants:
tesco.
,target, home, Depot and

5. Introductio
n To Walton
• Born in 1918
• Helped to make financial ends meet for his
family.
• Graduated in 1940 In Bachelor of economics
• On July 2nd, 1945 opened the first franchise in
US by name Walton.
Walton did not invent retailing. He simply changed the
business model and way of doing business to make it a
much more profitable venture.

6.  An American multinational retail corporation.
 World's second largest public corporation.
 Biggest private employer in the world .
 Largest retailer in the world.
 One of the five largest corporations in the world
by sales.
 A family-owned business, who own a 48
percent stake in Walmart.
Headquarters: Bentonville, Arkansas,
United states

7. 1945: first franchise in US by name Walton.
These were small chains that were very successful.
1962 : Retail Revolution.
1970 : Walmart goes National.
1980 : A decade of firsts.
1990 : America’s Top retailer.
2000 : New Millennium.
2012 : 50 years of helping customers save money and live
better.

9. S. Robson Walton :
Chairman of Board of Directors of walmart
stores
Michael T. Duke :
CEO & President
William S. Simon
EVP, P&CEO Walmart U.S.
C. Douglas McMillon
EVP, P&CEO Walmart International
Rosalind G. Brewer
EVP, P&CEO Sam’s Club
Neil M. Ashe
EVP, P&CEOGlobal eCommerce

10. Operating Divisions
 Walmart Stores U.S (4,092 units)
•
Walmart Discount Stores (539)
•
Walmart Supercenter (3211)
•
Walmart Market (316)
•
Small Format Stores (26)
 Walmart International (6242 units)
 Sam’s Club (621)
 Private Label Brands

11. Walmart U.S
Everyday low prices on a broad
assortment, anytime, anywhere.
 Leveraging a winning formula
 Fortifying our low-cost culture
 Engaged associates drive customer
satisfaction

12. A global portfolio that drives growth and
returns
 Disciplined growth through new stores
and e-commerce
 Leading on social and environmental
issues

13. Delivering greater value to members
 Merchandise that keeps members coming
back for more
 Innovations that enhance the shopping
experience
• Scan n Go Program

14. Delivering seamless access to customers
– anytime, anywhere
 Innovating in more ways
•
•
•
•
•
Social Genome
Shoppy cat
Voice
Product Information
Browse My Store
 Winning in key markets

18. 3 Basic Beliefs
• Service to our customers.
• Respect for the individual.
•
Striving for excellence.
 Walmart went to small towns and rural areas which
every other retailer ignored.
 Walmart knows its competitors and adopts their best practices.
 Opened discount stores where they could expand in future.
 Technological superiority over their competitors.
 Introduced the concept of cross docking.
 Promotional strategy of “Everyday Low Prices”.
 “ Satisfaction Guaranteed” policy.

20.  Competition Between Rival Companies
• Currently, they are three main incumbent companies that exist in the same
market as Walmart: Sears, Target, K-Mart.
• Walmart often has an absolute cost advantage over other competitors.
• Walmart has a mature industry life cycle and thus a tough competition is
maintained.
 Bargaining Power of Buyers
• The individual buyer has quite a minimal power when it comes to Walmart.
• Consumer could shop at a competitor who offers comparable products at
comparable prices, but the convenience is lost as the convenience.
• Walmart has a wide range of customers, but they most target the lower middle
class citizens. Because, those are the customers that are seeking the best quality
for the lowest price.
 Bargaining Power of Suppliers

21. • The high-market share of Walmart doesn’t give a lot of power because by
Walmart threatening to switch to a different supplier would create a scare
tactic to suppliers.
• Another potential risk to suppliers is Walmart could vertically integrate.
 Substitute Products
• When it comes to this market there are not many substitutes that offer
convenience and low pricing.
• Performance of substitute products are similar.
• Consumer switching costs are low.
 Entry Barriers
• Entry barriers are relatively high, as Walmart has an outstanding
distribution systems, locations, brand name and financial capitals to fend
off competitors.
• The new entrants will definitely face a stiff competition to enter into the
industry which has already some matured players.

22. Walmart and its Monopolistic Structure
 Walmart is indeed an oligopoly.
 Walmart is a giant monopolist.
 Walmart’s incredible size makes the company very
powerful.
 It has driven smaller retailers out of business.
 High Barriers to Entry into the market once Wal-Mart
penetrates a market.

23. Product
By providing all household items and more under one roof Walmart’s products are
quality products.
Pricing
Walmart has gained their reputation by being a store where customers can
expect “Always low prices”.
Placement:
Walmart will continue to expand in cities everywhere keeping in mind the location so
that it is convenient to the majority of their customers.
Promotion
Walmart staff will continue to keep Walmart customers coming back with their special

25. Our people make the difference
 Walmart means opportunity and door to better life.
 15,000 - 50,000 job openings at Walmart depending on the time
of year.
 2.2 million associates globally, including approximately 1.3 million
in the U.S.
 75% of store management teams started as hourly associates,
and they earn between $50,000 and $170,000 per annum— similar
to what accountants and even doctors make.
 Supporting our Nation's Heroes
 Benefits
 Building a Diverse Workforce
 Women > 57% of U.S. workforce, 27% of corporate officers, 20%
of Board of Directors.

26. Strengths
Weaknesses
 Largest wholesaler in the
globe.
 Ranked number 1 in 2011 by
Fortune 500.
 No comparable competitor
of such size.
 Variety of products.
 Gains from low-income
customers.
 Limited Market Place Space

27. Opportunities
 Increasing existence in
developing economies.
 Increasing market trends
impact its income growth.
Threats
 Increase of employees
results in increase in pays
and health care expenses.

28. Subjected to political action law suit for gender
discrimination.
Moderating Increase of supercenters in order to
leverage capital assets through a plan which is
designed to increase returns and sales in U.S. stores.
Consumers in U.S. who want one stop service go to
Walmart as their first choice because of the
social influence.
Technology is among the foremost concerns on
the agenda of marketing in Walmart. It mostly relies
on the internet and social media for advertising and
selling of its product.

29.  No. 1 in generation of onsite solar energy – Solar
Energy Industries Association – 2012.
 First among retailers and 11th overall
in FORTUNE’s Most Admired Companies survey –
2011.
 One of the Top Companies for Executive Women –
National Association for Female Executives – 2011.
 The biggest cash contributor to nonprofit and
community organizations in the United States –
The Chronicle of Philanthropy – 2011.
 One of the World’s Most Innovative Companies –
Fast Company Magazine – 2010.

30. Helping our customers and communities live
better
 Social responsibility
 Environmental responsibility
 Associate opportunity

31. The Walmart Foundation meets the needs of the underserved by directing
charitable giving toward our core areas of focus: Hunger Relief & Healthy Eating,
Sustainability, Women’s Economic Empowerment and Career Opportunity.
Sep 16, 2013
$5 Million Walmart Foundation Grant Helps Goodwill® Grow Jobs
Program For Veterans And Their Families
Sep 16, 2013
Walmart Continues Commitment to Local Community with
$500,000 Grant to Northwest Arkansas Council
Aug 27, 2013
Walmart Foundation Awards Rubicon with $30,000 Grant to
Provide Support Services for Residents Seeking Employment

32. Conclusion
Sam Walton didn't care much for
technology.
Wal-Mart’s networks are cutting edge, communicating to every
employee in the company from the cashier to the CIO. Strategically
outsourcing their technical communication has allowed Wal-Mart
to focus on the business itself with efficient mobility and low
prices.
The biggest move Wal-Mart has made to improve their system
intelligence is outsourcing their databases to NCR Corporation
bringing their total disk storage to over 7.5 terabyte make it the
largest commercial database system in the world.

33. By
Sneha Priya Nallam
TPS A ,2T333