Business strategy- Walmart

transcript

BUSINESS STRATEGY

Wal-Mart Stores, Inc

GROUP: UNKNOWN

CONTENT 1.What is Strategy?

2.A definition of Business Strategy

3.Types of Business Strategy

4.Business Strategy of Walmart Stores, Inc

5.Conclusion04/10/2023Nguyễn Thành Luân

1. What is Strategy?

A method or plan chosen to bring about a desired future, such as achievement of a

goal or solution to a problem using available resources.

Strategy bridges the gap between ends and means

Examples of Strategy

Planning a plane trip

• Call a travel agent

• Use the website of a specific airline

• Use a website that compares the rates of different airlines

Finding a job

• Using your current skills to find a new job

• Becoming an apprentice for a trade

• Going to college for a new career.

The Importance of Strategy

STRATEGY

attaining and maintaining a position of advantage

over adversaries

is about shaping the future" and is the human attempt to get to "desirable

ends with available means"

“a pattern in a stream

of decisions

2. A definition of Business Strategy

A business strategy is a business plan that takes place long-term in order to help achieve a specific goal or objective. Rapid Business Intelligence Success

Significance

STRATEGY

change-stimulatin

informational

Motivating

Significance

Monitoring how well

business is doing over

time Deciding the next step to

take in business in order to be

successful“TOOL”

Function

to increase the earning potential and success of a particular business

choosing the most profitable niche for a market to promote a business

to improve a business or make a business better than its competitors

3. Types of Business Strategy

Costleadership strategies

Differentiated

products and

services strategies

Focus strategie

Cost Strategies

pass along a lot of the benefits to

customers in the form of lower prices

a strategy available to any business

Still be able to price products and

services at a level high enough

Differentiated products and services strategies

Sell a very unusual product or service

Consumers happily pay the extra amount because they get so much

more for their money

The key is being able to charge the customers more for those special

features than the special features cost firm

Focus Strategies

the firm can, through this

focused approach,

serve a particular

market better than anybody

is really a hybrid of the

cost and differentiation strategies

4. Business strategy of Walmart

Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores

Company Overview

• The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972

• Walmart Stores operate retail stores in various formats across the world

Company Overview

Discount Stores

Super-centre

Sam’s

Marketside

US retail formats

Company Overview• Internationally, the company operates in

Argentina, Canada, China, Brazil,India,UK etc

• Currently it employs 2.1 million people in US

• The company records revenue of $ 469.162 billion (FY 2013)

Business Description

• Wal-Mart is the largest retail company in the world.

• It operates retail stores in various formats worldwide. Wal-Mart offers a wide assortment of merchandise at everyday low prices in its retail stores.

• E-commerce websites services.

Business Description

Walmart US Sam’s Club International Segment

Business Segments

Business DescriptionMexico The UK

Japan India

Business Description• Walmart's investments outside North

America have had mixed results:

In the United Kingdom, South America, and China are highly successful Whereas ventures in Germany and

South Korea were unsuccessful

Business Description• Dry and wet glocery• Beverages• Frozen food• Jewellery etc

Products

• Photo processing service• Cellunar service plan• Money order services

Services

• Walmart• Great value• Sam’s choice

Brands

Tesco PLC

Metro AG

Amazon

CVSCaremark

Staples

COMPETITORS

SWOT AnalysisSTRENGTHS

• Powerful retail brands, large scale of operation worldwide

• One Stop Retail• Strategic business

programs• Efficient working

capital management

WEAKNESS• Self Cannibalization• Involvement in

numerous legal issues

• Continuos 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

Walmart business strategy

WALMART'S AGGRESSIVE

PRICING(Cost

leadership)

Mission “to provide a wide variety of high quality,branded and unbranded products at the lowest possible price”

Efforts to procure products at the lowest prices possible from manufacturers

Walmart products are usually priced 20% lower than those of its competitors

WALMART'S AGGRESSIVE PRICING

• Generating more profits due to larger volumes soldProfits

• Reinvested in facilities (equipment, technology)

Surplus

WALMART'S AGGRESSIVE PRICING

Wal-Mart imposes a

strict control on its

overhead costs

• Ensuring that the rent paid was minimal

MARKETING STRATEGIES

• “Customers would be provided what they want, when they want it, all at a value”

Customers

• “Treating each other as we would hope to be treated acknowledging our total dependency on our associate- partners to sustain our success”

Team Spirit

• They also tailor their merchandise assortment and store experience to meet the specific needs of a broader customer base

• Currently, WalMart has created over 125,000 new jobs and the operation of over 3,000 international stores, buying products from 70 countries

Walmart Employees

• Increasing in segmentation in order to better serve the customers

Customer Data

• Improving inventory management and reduced cost

Radio frequency ID tags and E-

check conversion

WALMART CUSTOMER SERVICE

Thinks like customer

Give a good value in

product for customer

Sell what customer wants to

Exceeds customer

expectation

Ensures that customer

enjoy themselves in

process

WALMART CUSTOMER SERVICE

to have almost every aspect of their business centered on its

customer

handles their customer’s

complaints in a fast and friendly

manner

WALMART GROWTH 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

WALMART STORES, INC

5.Conclusion• The aim of a business strategy is to strengthen

a particular business so that its performance increases and, in turn, the business becomes more profitable. Without a business strategy, a business has no guide to follow and has an increased risk of not succeeding.

• Sam Walton - founder of Walmart - whose business style is that customers and product quality is paramount has an extremely effective business strategy for Walmart. It has now become a classic example for art of successful business plan.

G R O U P