BASAVESHWAR ENGINEERING COLLEGE

[AUTONOMOUS]
VIDYAGIRI BAGALKOT -587102

DEPARTMENT OF MANAGEMENT STUDIES

SUBJECT: STRATEGIC MANAGEMENT

TOPIC
Walmart Strategies

Submitted By: Submitted To:

Team 1
  Dr.Shrilata Rao
        
1
5
INTRODUCTION TO WALMART
• An American public corporation that runs a chain
of
large discount department stores & warehouse stores.
• World's largest public corporation by revenue.
• Largest private employer in the world.
• Fourth largest utility or commercial employer.
• Largest grocery retailer in the United States (20%).
• Largest toy seller in the United States (22%).
• World’s biggest retailer.
6 ABOUT WALMART

• Founded : Arkansas, USA (1962) by Sam Walton.

• Headquarters: Bentonville, Arkansas, U.S.A.
11 ABOUT WALMART

• Founded by Sam Walton in 1962

• Incorporated on October 31, 1969.
• Publicly traded on the New
York
Stock Exchange in 1972.
• Walmart operate retail stores
in various formats across the
world.
7 ABOUT WALMART

• Sectors : Discount Stores, Super centers, Neighborhood Markets.

10 ABOUT WALMART

Slogans:
o The Lowest Prices. Guaranteed!
o Save Money, Live Better
o We Sell For Less Everyday!
HISTORY OF WALMART
o 1918: Born in a farmer’s family in Kingfisher, Oklahoma.
o 1940: Graduated from the University of Missouri.
o 1950: Gave up job and opened his first store in Arkansas.
o 1962: Walten Brothers opened fist Walmart in Arkansas.
17
BUSINESS
DESCRIPTION
• Dry and wet grocery
• Beverages
Products • Frozen food
• Jewelry etc.
• Photo processing service
Services • Cellular service plan
• Money order services

• Walmart
Brands • Great value
• Sam’s choice
THE CORPORATE STRATEGY
Dominance in the Retail market
30
THE CORPORATE STRATEGY
SAM WALTON GAVE 3 POLICY GOALS TO
DEFINE WAL-MART'S BUSINESS:

Respect
for the
Individual

Strive for Service to

Excellence
Customers
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STRATEGIC GOALS
Three successful elements and a fourth element of Walmart
strategy formulation:
1. Dominate theRetail Market wherever Wal-Mart has
a presence.
• Wal-Mart is primarily a discount retailer.
• Lowering the markup, and profit on
earn increased volume of sales. the
• Competitiveness of every unit.
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STRATEGIC GOALS
2. Growth by expansion in the US and Internationally.
• Gain entry into a nation by Corporate Takeover of a
national retailer. Once the company is bought, Wal- Mart
converts the stores into Wal-Mart stores.
3. Create widespread name recognition and customer
satisfaction with the Wal-Mart brand, and associate the
retailer with the reputation of offering the best prices.
• The company accomplishes this through
television
advertising campaigns and newspaper adverts.
• The company engages in partnerships and co- branding.
35 COMPETITIVE STRATEGY

• Low Cost Leadership. The

giant retailer prides on
providing itself
customers with low-
cost
items that beat competitors.
• Differentiation Strategy.
Wal- Mart uses the differentiation
strategy
to succeed by creating a
product
offerin unique or warranties and
service images
g unique to customers.
exclusive to the
Wal- Mart has achieved this strategy
brand
by
store.
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COMPETITIVE STRATEGY

• The company's competitive strategy is to dominate

every sector where it does business.
• It measures success in terms of sails and dominance over
competitors.
• Sell goods at low prices, outsell competitors, and to expand.
• To build more stores, make existing stores bigger,
and to
expand into other sectors of retail.
• Every step of the way, it strives to make money and dominate
its competitors, to the point of putting some competitors out
of business.
BUSINESS STRATEGY
Investment in Technology:
Walmart invested heavily on technology
to enhance communication
help headquarters, stores, and
between As a result inventory
vendors.
decreased and logistics
costs
inbound became more
efficient.
Walmart
Human Resource
was recognized as one among 100 best
companies to work for in America. It
Policy:
used to offer a percentage of store profit
as incentives to store managers.
BUSINESS STRATEGY
Cost Consciousness: Walmart developed a cost
conscious culture for the company to reduce costs
whenever possible. It controlled costs by
elimination of superfluous
systematic
expenses.
Customer Service: Walmart implemented policies to
create friendly shopping environment for customers. It started
its “Aggressive Hospitality” program in 1984, where
customers were received by “people greeters” and
they enjoyed benefits such as extended opening
hours, free parking, no hassle refund and
exchange policies, speedy checkout lanes, wider
aisles, and clean stores.
 WALMART GROWTH
4
STRATEGY

Maintain current net sales growth of

approximately 12 percent per year.

Expand into international markets that have

large population centers.

Increasing the overall efficiency of the

organization by reducing operating costs or
cost of goods sold.
 SWOT ANALYSIS
Strengths
• Powerful retail brands, large
scale of operation worldwide.
• One Stop Retail.
• Strategic business programs.
• Efficient working capital
management.
Opportunity
• Global food safety initiative
standard.
• Increasing demand of online
sales.
• Increasing opportunity in
growing economy.
Weakness
• Self Cannibalization.
• Involvement in numerous legal
issues.
• Continuous product recall.
• Community relations problem.
Threats
• Intense competition.
• Price matching program by
target.
• Foreign currency fluctuation.
THANK
YOU