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Company Profile

It's the world's biggest retailer and also the biggest employer with over 2.1 million fulland part-time workers worldwide Known for its low pricing and wide selection of goods, Wal-Mart has become the undisputed king of retailing The company has 10,130 stores worldwide Wal-Mart Supercenters include supermarkets and average 185,000 square feet

History

The first Wal-Mart store opened in 1962 by brothers Sam and Bud Walton. By 1964, Wal-Mart had 24 stores with $12 million in sales The company was guided by founder Sam Walton's passion for customer satisfaction and "Every Day Low Prices." In 1970, the company opened its first distribution center and corporate headquarters in Bentonville, AR, where it is located today. Wal-Mart also went public the same year. In 1983, the first Sam's Club warehouse store opened.

Headquarters
Bentonville,

USA

Mission Statement and Purpose


"We save people money so they can live better."

In addition to this mission statement, the company looks to its founder, Sam Walton for a company "purpose": If we work together, well lower the cost of living for everyonewell give the world an opportunity to see what its like to save and have a better life.

Others

Products

Additional Brands
Apparel

Major Brands

Sam's Choice Great Value Equate Mainstays Ol' Roy Dr Thunder Special Kitty Parent's Choice White Stag George

Baby George Faded Glory No Boundaries Simply Basic

Homliness

Better Homes and Gardens Canopy Hometrends your zone4

@ the Office Best Occasions Clear American Color Place Douglas EverStart Fire Side Gourmet Gold's Gym Holiday Time Kid Connection Marketside Oak Leaf ONN Ozark Trail Protege ReliOn SuperTechWalmart Family Mobile World Table

5 force model

Threat of new competition Threat of substitute products or services Bargaining power of customers Bargaining power of suppliers

Intensity of competitive rivalry

Threat of new entrants


France

is a big market experiencing significant growth in retail industry in recent years. Strong economy, stable government, favorable government policies for foreign investment and well-developed infrastructure and with introduction of EURO as common currency and same international laws, makes France a very attractive place to be in. But at the same time the entry and exit levels are high and it is getting mature quickly and have low profit margins.

Substitute products
As

the retail industry sells products of daily common use, there are no direct substitutes; the only substitute products that can be threat are the products from gray market, which can harm the sales of branded products. Department and discount stores also faces stiff competition from specialized retail shops such as garments, electronics etc.

Suppliers
Because

of the diverse product range that is distributed by retailers there are many different suppliers. Suppliers include both domestic and international manufacturers and as the products are more or less standardized in nature, retailers and wholesalers have low switching costs, the powers of supplier are moderate to low.

Buyers
The

consumers are now more sophisticated and mature. As said by Carrefour, they want it now and they want it with the best service and the best quality. Consumers enjoy increasing choice of products and increased price competition, and they demand better and wider choices. They also exert pressure on manufacturers and retailers to give more relevant product information.

Competitors
o o o o o o o o o o o Kmart Target ShopKo Meijer Zellers Hart Real Canadian Superstore Giant Tiger Comercial Mexicana Soriana Costco

SWOT analysis Strengths


Financial Strength: Wal-Mart is the world's largest retailer with a turnover of more than $137billion. CEO of Carrefour, Mr. Bernard said that, "but now, to be global you need money. Not only to invest in new markets, but to keep up with the competition at home. Computer System: Wal-Mart has one of World's best Retail Link computer systems to keep in check inventories that have provided it a definite edge over its competitors over the years. Culture: Strong work ethics and commitment towards consumers made every employee an asset for the company. Buying power: Wal-Mart enjoys huge economy of scale as it has tremendous buying power, most of its suppliers are working on international scenario like P&G, therefore,

SWOT analysis Weakness


Liquidity Ratio and Financial Stability Ratio Due to recent acquisitions in Germany, South Korea, Canada, expansion of operations in USA and other countries and $ 2 billion share buyback have resulted in very low quick ratio, also Debt Equity Ratio is well above the critical level of 1 and is still going up

SWOT analysis Threats


Hidden Legal Barriers: As the France government have imposed significant legal barriers to control the growth of department stores and hypermarkets to save traditional small shops and for saving beauty of the environment caused by sign boards (what are they called).These Trade barrier poses significant treat for Wal-Mart to grow in France Economic and Political Turbulence in Europe The ongoing economic war between European Union and USA War in Kosovo Political Turbulence in Germany Change in Currency Exchange Rates

SWOT analysis
Strengths
Powerful Retail brand, Large scale of operations worldwide One Stop Retail destination Strategic business programs Efficient working capital management

Weakness
Self Cannibalization Involvement in numerous legal issues Continuous Product Recall Community Relations Problem

Opportunity
Global Food Safety Initiative Standard Increasing demand of Online sales Increasing opportunity in Growing economy

Threats
Intense competition Price matching program by Target Foreign currency fluctuation

Strategies
Strong

Distribution, Inventory management system Differentiated pricing Cost advantage strategy IT advantage

Corporate Strategies
Dominance

in Retail Market Expansion in US and International market Creation of Positive Brand and Company Recognition Branching into new sectors of retail

Key Success Factors


Acquisition

of McLane Company in year 1990 Diversification in Food and Grocery retailing Razor thin margin provides Great Value to customer Acquire of PACE club Kmart

Conclusion
Wal-Mart

must adopt a friendlier corporate attitude It needs to relax anti-unionization policy Improve public perception that Wal-Mart can destroy communities International expansion should be done with the help of Local retailers

Thank you!