section4 walmart

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• Core principle focused on providing value.

• Market not very competitive. Only two major competitors

in the form of Kmart and Target• Strong base in smaller cities and towns. Market uneposed

to other eisting brands

• !leibility " #$% space of store space leased.

• Own &arehouse enabled bulk buying at discounted prices

•  The ependiture on buying was ensured to be minimumtargeting '% of the total purchase

• (asy returns policy ) leading to high consumer satisfaction

• Competitive prices ) everyday prices were low.

&hat are the sources of &alMart*scompetitive advantage in discount retailing+

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• Operating epenses "',.'% as compared with-./ % for its competitors

• O0ered minimal 1'23 circulars annually as

compared to competitors.• (pense on 4dvertising " '.5% of store sales

as compared with -.'% for its competitors

• 6ental epense " 2% of its store sales as

compared with 2.2 % for its competitors

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• 7Satisfaction guaranteed8 policy" maimi9e sales volume and

inventory turnover keepingepenses as minimum aspossible.

• :i0erential pricing ) -"% as

compared to competitors• (pense on 4dvertising " '.5%

of store sales whereas its was-.'% for its competitors.

• Competitor locations taken into

ow sus a na e s e rposition in discount

retailing in the future++

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• <mplementation of superior (lectronic :ata

<nterchange 1(:<3 systems and nichetechnology

• (asier and =ow cost Transportation ) Storesgrouped together on the basis of proimity toimprove and optimi9e transportation

• 74lways low price8 ) provided great in>uenceand a stronghold in the market

• ?ni@ue management style for empoweringassociates and building loyalty among

associatesA customers and suppliers• Store"Managers empowered with the right to

decide the prices

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Sam’s clubs

 Currently competing with Brice clubs A andepected to be leading within few years

Sales growth up to '.5% D achieved highest salesin national warehouse club chains.

4ggressive ac@uisition D 4c@uired of Kmart*s''2 EBace club*.

Super centres

BroFtability " //% as compared to an averagesupermarket proFtability of 22.2%.

:iscount storesA wholesale clubs and supercentres.

;ow e0ective is their diversiFcationstrategy+

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&hat are your strategicrecommendations for &al"

Mart for the future+

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Strength

• Cost advantage• =ow price• Customer loyalty• Strong supply chain and integration with technology• (mpowered work force

&eakness

• Stores very plainA not attractive enough•  Too many sectors leading to lack of focus

Opportunity

• Guild own brand• <mprove social image

• (pand to overseas Market

 Threat

• Other upcoming and eisting competitors• <nability to maintain price advantage

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Sustain the low cost strategy to establish andmaintain competitive advantage

(pansion into overseas markets can be

eplored<ncreased engagement in social activities and

CS6 activities to improve social image

Continued investment in increasing outlets

and other diversiFcation strategiesContinued integration with technology to

improve performance.

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 Thank youHHHHH