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Presented By:

Prakash Sharma
PG-I-011
IMM, New Delhi
INTRODUCTION
Established 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
BRANDS
Keepsake – Jewelry
Faded Glory – Apparel

No Boundaries – Accessories

GEORGE – Ladies Apparel

Mary-Kate and Ashley – Girls Department

Equate – Health and Beauty

One Source – Vitamins

Ol’ Roy – Pet Food

Puritan – Clothing

Great Value – Food

Sam’s Choice – Food and Beverage


SPECIFIC OBJECTIVES

To study the entry and expansions


strategies used by Wal-Mart in China.
RESEARCH METHODLOGY

Secondary data analysis through various web


sites like:
www.walmart.com
www.walmartstores.com
www.wal-martchina.com/english/index.htm
www.kayleeidea.blogspot.com
www.books.google.co.in/books
www.grin.com/e-book
www.strategy-business.com
www.fastcompany.com/.../wal-marts-china-
expansion-strategy
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 SERVICE
Let'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 them
it 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

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.
RECOMMENDATIONS

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.
THANX