Strategy walmart
-
Upload
ramkumar-ganesan -
Category
Business
-
view
947 -
download
5
description
Transcript of Strategy walmart
venturing into INDIA
Reid Drossos
Shalin Lakhani
Gaurav Kohli
Van Tran
Ramkumar Ganesan
SWOT Analysis
STRENGHTS
Lowest prices (EDLP)
Supply Chain
WEAKNESS
Monopolistic image
Lack of experience in Indian retail
OPPORTUNITIES
EXPAND – Booming retail sector
Consumer base of 1.2 billion
THREATS
Competition from local stores and similar companies.
Political and social backlash
Threat of Substitutes•Unorganized small scale vendors •Online retail stores
Threat of New Entrants•International retail giants considering entry (Tesco, Carrefour)Barriers to Entry•Supply chain complexities and inefficient infrastructure
Bargaining power of suppliers•Big brands possess higher bargaining power.
Competitive Rivalry•95% unorganized retail sector•Local players like Reliance, TATA, Future Group etc.
Bargaining power of Customers•Easy availability of products•Price consciousness
High
HighModerate
Moderate
High
Porter’s 5 Forces
BLUE OCEAN – The Opportunity
Tier 2 and Tier 3 cities • Unorganized retail sector• Burgeoning middle class • Less exposure to supermarket experience.• Lack of efficient supply chains and
inventory management systems.
•Empowering Franchisees.•Negotiating partnerships with store owners for profit sharing.
Partnering with local store owners
Modern Supply Chain
Excellent Inventory Management
Store Owners involve in understanding consumer needs
Sales and shop-keeping retained by Store Owners
Ideal Locations
Potential Partnership Store
ManufacturersCostly Middlemen Retailers Customers
Existing Supply chain
Reduced margin
Inefficient supply chain
Walmart supply chain
Bharti Walmart franchise stores
Increased profit margins for the Store Owners
High Bargaining power - Reduced costs
High quality goods Lowest costs
Bharti-Walmart Supply chain
Thank You !!!!