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Submitted by-
Nipun Sharma
Priyank Sharma
Introduction
• Sam Walton, began his retail career when he started work on June 3,
1940.
• On July 2, 1962, Walton opened the first Wal-Mart Discount City
store.
• The company was incorporated as Wal-Mart Stores, Inc. on October 31,
1969.
• 1987 there were 1,198 stores with sales of $15.9 billion and 200,000
associates.
• At that time, it has the largest private satellite network, allowing the
corporate office to track inventory and sales and to instantly
communicate to stores.
• In 1988, the first Walmart Supercenter opened in Washington.
• In 1998, Walmart introduced the "Neighborhood Market" concept
• 2002, it was listed for the first time as America's largest
corporation on the Fortune 500 list, with revenues of $219.8
billion and profits of $6.7 billion. It has remained there every
year, except for 2006.
'To give ordinary folk the chance to buy the same thing as
rich people'
WAL-MART’S
INTERNATIONAL EXPANSION STRATEGY
Threats
• They are facing competition in local markets.
• Competitors may imitate their strategy.
• Intense Price Competition
• Legal and political issues
PEST Analysis
Political Influences
a) E.U. custom regulations.
b) F.D.I. restrictions in retail.
c) Political Ideology.
Economic Influences
a) Recession, Inflation.
b) Exchange Rates.
c) Low per capita income in developing countries.
Social Influences
a) Marketing strategies ineffective
b) Language and Cultural barriers.
c) Anti- Globalization Movements.
Technological Influences
a) Advances in technological and satellite systems.
b) Lack of basic infrastructure in ASIAN countries.
Porter’s 5 Forces Model
• Bargaining power of suppliers –
LOW – Size of WALMART
Entirely dependent on WALMART for sales
• Bargaining power of buyers-
LOW- Best pricing
Proactive customer service
• Threat of entry-
MEDIUM- High Investment cost.
Extensive distribution network.
Scale and Scope of operations is high
• Threat of substitute-
MEDIUM- Mom and pop stores charge higher
It serves to nearly all consumer needs
Loyalty Schemes run by other companies
THREATS
• The leaders of the retail market are the 12-40 million tiny mom-and-pop
retail shops which are predominantly run by small family businesses.
• The mom-and-pops have an advantage as they are conveniently located on
street corners.
• Existing Retail Chains like Rel. Fresh, Subhiksha, Spenccers, Big Bazaar,
Vishal Megamart, Salasar.
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