Presented By:Presented By:Prakash SharmaPrakash Sharma

PG-I-011 PG-I-011 IMM, New DelhiIMM, New Delhi

INTRODUCTIONEstablished by Sam Walton, in Arkansas in 1962.7,800 stores globally, having over 2 million associates and covering 16 countries, serves 176 million customers every week.In China, retail operations in 1996 with the opening of a Supercenter and Sam’s Club in Shenzhen. 146 stores in China, covering 89 cities, including 138 supercenters, 3 Sam’s Clubs and 2 Neighborhood Markets.

RETAIL DIVISIONS

BRANDSKeepsake – JewelryFaded Glory – ApparelNo Boundaries – AccessoriesGEORGE – Ladies ApparelMary-Kate and Ashley – Girls DepartmentEquate – Health and BeautyOne Source – VitaminsOl’ Roy – Pet FoodPuritan – ClothingGreat Value – FoodSam’s Choice – Food and Beverage

To study the entry and expansions strategies used by Wal-Mart in China.

SPECIFIC OBJECTIVES

Secondary data analysis through various web sites like: www.walmart.comwww.walmartstores.comwww.wal-martchina.com/english/index.htm www.kayleeidea.blogspot.com www.books.google.co.in/bookswww.grin.com/e-bookwww.strategy-business.comwww.fastcompany.com/.../wal-marts-china-expansion-strategy

RESEARCH METHODLOGY

MAIN ANALYSIS

Strategy in China • opened “one horse”, rural, backwater towns ignored by other retailers • aimed to serve customers who had travel long distances to save money • offered multiple store formats, including discount stores, supercentres, warehouse stores, and neighborhood markets • brought customers from all income levels

• started by opening discount stores in small towns

CUSTOMER SERVICELet's be the most friendly – offer a

smile of welcome and assistance to all who do us a favor by entering our stores. Give better service – over and beyond what our customers expect. Exceed your customers' expectations – If you do, they'll come back over and over again."

– Sam Walton

3 cardinal beliefs: Providing great customer service, Showing respect for the

individual, and Striving for excellence

MARKETING MIX

PRODUCT ~ They have a wide variety of products; all are what I

call 'general use' meaning they sell items that any household would need, from food to sporting goods.

PRICE ~ Always low prices.

PLACE ~ Again - general merchandising and one-stop shopping is part of their placement issues.

PROMOTION ~ TV and print ads

SWOT ANALYSIS

Strength Reputation as a value for money It has experienced global expansion (purchase of the United Kingdom based retailer ASDA). A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing themit can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement

Weakness

1.The company is global, but has a presence in relatively few countries Worldwide. 2.Wal-mart weak in some areas of IT due to his huge span of control

Opportunities

1.To take over, merge with, or form strategic alliances with other global retailers.

2.opportunities for future business in expanding consumer markets, such as China.

Threats Threats

1. Being number one means that you are the target of competition, locally and globally.

2. Being a global retailer means that you are exposed to political problems in the countries that you operate

in..

PEST ANALYSIS

Political Factors Local governments protect state-owned enterprises

under their jurisdiction as they were the base of their political power and a source of private benefits as well

as fiscal revenue.

Economical Factors Unemployment rates followed the course of the

economy, with levels rising to unprecedented levels.With less money coming in to Chinese families, the demand for discounted goods and their retailers grew

Sociocultural Factors There was a shift in brand loyalty due to the fair

standard in labeling act, shifting consumer

confidence to brands rather than retailers

Technological Factors

Wal-Mart was quick to adopt new tech as they were developed and adapt them to their operations

FINDINGS Initially, no knowledge of the 1.3 billion people that have different cultural background. intense competition, as the government has encouraged the local retailers to merge themselves in order to compete with the foreigners. acquired trust-mart with a deal of $ 1 billion and become frontier line of competitor with the existing players. currently doing well and now, the ten biggest retailer’s earners in the year 2008.

Wal-Mart, better known for its mega stores and hypermarkets, now should open convenience stores in China to boost its presence in one of the world's fastest growing retail markets. Wal-Mart should regularly update primary and secondary analysis of the market and adapt to the local taste accordingly with the marketing mix strategy.

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