section4 walmart

7/23/2019 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+



• 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



• 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++



• <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



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+



&hat are your strategicrecommendations for &al"

Mart for the future+



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



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.



Thank youHHHHH

section4 walmart

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