Post on 18-Feb-2018
7/23/2019 Section4 Walmart
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• Core principle focused on providing value.
• Market not very competitive. Only two major competitors
in the form of Kmart and Target• Strong base in smaller cities and towns. Market uneposed
to other eisting brands
• !leibility " #$% space of store space leased.
• Own &arehouse enabled bulk buying at discounted prices
• The ependiture on buying was ensured to be minimumtargeting '% of the total purchase
• (asy returns policy ) leading to high consumer satisfaction
• Competitive prices ) everyday prices were low.
&hat are the sources of &alMart*scompetitive advantage in discount retailing+
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• Operating epenses "',.'% as compared with-./ % for its competitors
• O0ered minimal 1'23 circulars annually as
compared to competitors.• (pense on 4dvertising " '.5% of store sales
as compared with -.'% for its competitors
• 6ental epense " 2% of its store sales as
compared with 2.2 % for its competitors
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• 7Satisfaction guaranteed8 policy" maimi9e sales volume and
inventory turnover keepingepenses as minimum aspossible.
• :i0erential pricing ) -"% as
compared to competitors• (pense on 4dvertising " '.5%
of store sales whereas its was-.'% for its competitors.
• Competitor locations taken into
ow sus a na e s e rposition in discount
retailing in the future++
7/23/2019 Section4 Walmart
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• <mplementation of superior (lectronic :ata
<nterchange 1(:<3 systems and nichetechnology
• (asier and =ow cost Transportation ) Storesgrouped together on the basis of proimity toimprove and optimi9e transportation
• 74lways low price8 ) provided great in>uenceand a stronghold in the market
• ?ni@ue management style for empoweringassociates and building loyalty among
associatesA customers and suppliers• Store"Managers empowered with the right to
decide the prices
7/23/2019 Section4 Walmart
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Sam’s clubs
Currently competing with Brice clubs A andepected to be leading within few years
Sales growth up to '.5% D achieved highest salesin national warehouse club chains.
4ggressive ac@uisition D 4c@uired of Kmart*s''2 EBace club*.
Super centres
BroFtability " //% as compared to an averagesupermarket proFtability of 22.2%.
:iscount storesA wholesale clubs and supercentres.
;ow e0ective is their diversiFcationstrategy+
7/23/2019 Section4 Walmart
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&hat are your strategicrecommendations for &al"
Mart for the future+
7/23/2019 Section4 Walmart
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Strength
• Cost advantage• =ow price• Customer loyalty• Strong supply chain and integration with technology• (mpowered work force
&eakness
• Stores very plainA not attractive enough• Too many sectors leading to lack of focus
Opportunity
• Guild own brand• <mprove social image
• (pand to overseas Market
Threat
• Other upcoming and eisting competitors• <nability to maintain price advantage
7/23/2019 Section4 Walmart
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Sustain the low cost strategy to establish andmaintain competitive advantage
(pansion into overseas markets can be
eplored<ncreased engagement in social activities and
CS6 activities to improve social image
Continued investment in increasing outlets
and other diversiFcation strategiesContinued integration with technology to
improve performance.
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Thank youHHHHH