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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
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
Homliness
@ 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
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
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
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!