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WALMART

Submitted
by-
Vandana Rana(2K18/MBA/083)
Sukriti
Kanwar(2K18/MBA/085)
Walmart

 Walmart Inc. is an American multinational retail corporation that operates a


chain of hypermarkets, discount department stores, and grocery stores,
headquartered in Bentonville, Arkansas. The company was founded by Sam
Walton in 1962.
TRENDS SET BY
WALMART
1.) The grocery picking robot – Alphabot
 In 2018, Walmart introduced a new custom-built grocery-picking robotics
system called Alphabot in its Salem, Texas superstore.
 The tech can automatically ‘pick’ groceries from storage for online
orders and bring them to Walmart’s staff who then put each order
together.
 Alphabot can pick frozen and chilled items and dry goods, but staff will
still pick fresh items like produce.
 it doesn’t remove the human element completely.
2.) The in-store pick-up tower

 Walmart doubled down on in-store click-and-collect by putting Pickup


Towers.
 The automated systems let customers retrieve their online orders
without the need to stand in line or find a member of staff.
 This is one of the ways that Walmart is using its physical store network
to take on online-only players.
3.) The mobile app

 Walmart launched a new store assistant feature to its app. Customers


benefit from improved in-store navigation with the ability to search for
any item and find its exact location in the store – even the aisle and
shelf.
 They can also search for generic and specific product terms to check the
stock levels in their local store.
 They can add items to a shopping list, which calculates the cost of the
basket as they go. This means they can see how much they’ll spend
before they get to the store.
4.) Efficient delivery
 The company made plans to expand its same day delivery service to
more than 800 stores. Deliveries will be made in as little as three hours.
 Previously, to meet last mile delivery demands it has trialled partnering
with companies like Uber and Lyft.
 Now though it is focusing on its own crowdsourced delivery service –
Spark Delivery. It uses a pool of independent drivers who sign up to
make deliveries according to their schedules.
5.) The automated grocery kiosk
 It started off with one in Oklahoma and has just launched a latest
version in Texas.
 Customers place an order online which is packed in-store by staff and
then placed in the kiosk, which has fridges and freezers to make sure
everything stays fresh.
 When they’re ready to pick-up, customers use the interfaces in the side
of the kiosk to scan their order barcode.
 There is no need for the customer to step foot in the store or even speak
to an assistant. Customers can just drive up, get their shopping and be
gone within minutes. It also means that they can collect their order
outside of normal operating hours if need be.
STRATEGIES WALLMART IS USING TO
CAPTURE THE MARKET
 India allows 51% FDI in multi-brand retail, while 100% FDI is allowed in
cash-and-carry wholesale ventures.

 Walmart started its operations in India in 2007. It entered the market, by


forming a Joint venture (JV) with Bharti Group, known as Bharti Walmart
Private Limited.
 Bharti Walmart entered into Wholesale Cash & Carry business. The stores
were branded as Best Price Modern Wholesale stores. Bharti Walmart
worked as a key supplier to Easyday retail stores of Bharti Retail.

 The JV of Walmart India and Bharti Retail didn’t work and was called off in
October, 2013 (“Bharti and Walmart”, 2013). Bharti divested their stake in
the JV and Walmart India took complete control of the company.

 Walmart, which has put mom-and-pop stores out of business in the US, is a
supplier to kirana stores in India supplying the local store-holders instead
of competing with them.
  Walmart also opened its first fulfilment centre (FC) in Mumbai, an
improvement on its cash-and-carry store model, which will hit markets
much faster and focus exclusively on FMCG products and staples.

 Walmart India owns and operates 27 Best Price Modern


Wholesale stores and 3 Fulfilment Centres in India.

 e-commerce portal can attract foreign direct investment and operate as


a market place model. E-commerce operates on a technology platform
which is allowed to obtain FDI investments. They then invite brands /
retailers to showcase their merchandise on their platform. Technically,
the e-commerce company is not into direct retail but are providing a
platform to retailers just like any other off line mall. This is called a
market place model.
 US retail giant Walmart will acquire a controlling stake of 77% in
Flipkart for $16 billion. The deal, experts believe, doesn’t just validate
the potential of the Indian retail market but it also sets the stage for
the big showdown between Alibaba, Amazon and Walmart, making
India the ultimate battleground of global dominance in retail.
CHALLENGES FACED AT THE TIME
OF ESTABLISHMENT IN INDIA
 Strong oppositions from the intermediary and the small “mom-and-pop”
retailers.
 Lack of infrastructure
 Weak and inefficient supply chain network
 Lack of support from various political parties
 Opposition from trade unions
 Presence of cultural barrier
CHALLENGES FACED NOW THAT WALMART
HAS ESTABLISHMENT ITSELF IN INDIA

 Walmart is looking for ways to operate more efficiently looking for ways
to operate more efficiently.
 Nearly 90% of all consumer goods are sold through small kirana stores.
The distribution channel is highly fragmented as there are about 10
million kirana stores in India.
 Flipkart, which has resisted Amazon’s onslaught for the last five years,
has accumulated losses  of around $3.6 billion. The challenge of piling up
losses is not something that can be solved anytime soon, regardless of
Walmart’s deep pockets, because the price war with Amazon will
continue.

If they’re flexible about developing India-specific models then, they could


have a shot at success. That will take time, innovation, and new ideas—not
just money.