Walmart Mini Case Study

Post on 13-Apr-2017

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Introduction

• World’s largest retailer.

• Second largest company.

• Over $400 billion in revenue.

History Overview

1962: Walton brothers

opened first walmart in arkansas

1970: It expanded

and became famous

1990: #1 national retailer

1991: International

expansion

1993: Creation of “great value”

2003: Largest

corporation in the world

2012: 50th

anniversary

Mission and Vision

Mantra:To help people save money so they can live

better

Moto:

Becoming an international brand

Vision:

“If we work together, we’ll lower the cost of living for everyone….we’ll give the

world an opportunity to see what it’s like to save and have a better life

Slogan:

Save money. Live better

Customer Target

• “Wal-Mart's targeted demographic:

–Modest incomes

–Shoppers interested in prices

• But the customer base is changing

Walmart Ruling Is Major Setback for Worker Rights

Walmart Workers from the 20 cities across United States started for Strike from 20th November 2014, Which was related to Low payments to the workers and sex discrimination.

Workers were in the favor of increasing the salaries from $ 9 per hour to $ 25000 per year which can safeguard their life and sex discrimination which was rising issues in the organization.

While in the special board meeting it was decided to increase the salaries till $ 15000 per year and strike got called off.

This news made huge damage to company image, employee relationship & Goodwill in the market.

Main Competitors

Retailer Industry: TargetI. Target is the main competitor of Walmart

II. ranked #33 in the Fortune 500.

III. Target offers very similar products.

IV. Target went abroad in January 2011.

Mission: to Make Target your preferred shopping destination in

all channels by delivering outstanding value, continuous

innovation and exceptional guest experiences.

Supermarket Industry: Dollar

GeneralI. One of the main competitors, pursuing low prices.

II. Good location in smaller communities is the main

competence advantage.

III. Strategy: Save time, save money

IV. Many items per $1

Mission: to best serve others by keeping it real and simple.

• Eliminating

30% of the

energy used in

stores.

• Doubling the efficiency of its vehicle fleet over the next 10 years.

• Eliminating of excess

packaging on its kid

connection private-

label toys.

• Saved

3800

trees and

1 billion

barrels

of oil.

Extreme Makeover:

Project IMPACT

In 2008, “Project Impact “ was launched

which aims to

improve the Walmartshopping experience

and increase sales

• Million of Walmart customers witnessed the big reveal at grand reopening

across the country .

• Walmart are

getting an extreme

makeover, from the

color, spacing

assortment of

goods up to

changes of

merchandise with

marks bigger and

bolder sign age.

• They launched

project impact

during financial

crisis in US, they

take advantage

sag economy,

they had low

prices to get

more customers

• Walmart made changes of the placement of their shelves. They shuffled departments for

easier and better shopping experience customers.

Groceries are expanding Walmart great value stores brand consumable

Bill Simon, executive Vice President and chief operating officers of Walmart, confirms bankers point that having less inventory in stores resulted in higher in stocks not lower in stocks.

Simon remarks that the project impact which ultimate goal is customers satisfaction is to give and improve the shopping experience for customers by providing them an access and visibility to departments in the store.

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STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

• Diversity in products & services• Convenient prices & locations• Strong market presence• Customer loyalty• Strong financial performance• Cost and pricing advantages over

rivals• Good supply chain

• Global Expansion: new geographic areas

• Increasing online sales• Strategic alliances

Acquiring rival firms

HarmfulHelpful

•Brand image-weak reputation•Low global presence•Behind rivals in e-commerce

• Intense Competition• Laws and Regulations:

Trade policy• Cultural barriers• Current economy • Slow market growth• Transport of distinctive

comptency

Summary

DISCLAIMER

Created by: SHREY GARG

IIT BHU, VARANASI

during an internship by Prof.SAMEER MATHUR, iim lucknow