CASE STUDY DISCUSSION

GROUP ASHREY, AROON, SREENATH, RAM AGARWAL,SONY

ABOUT WALMART
1950: Walton opens first five-and-dime 1962: Walton opens first Wal-Mart in Rogers, Ark. 1970: Wal-Mart has IPO 1979: Annual sales top $1 billion 1985: Wal-Mart has about 880 stores and $8.5 billion in revenue, smaller than competitors Kmart and Sears 1990: Wal-Mart surpasses Kmart in size 1991: Wal-Mart opens first international store in Mexico City 1992: Wal-Mart surpasses Sears in size; Sam Walton dies 1994: Wal-Mart surpasses in size Kmart and Sears combined

A SNAPSHOT

STRENGTHS STRENGTH
Core competence in use of information technology to support its international logistics system.
Example, it can see how individual products are performing country-wide, store-bystore at a glance. A focused strategy is in place for human resource management and development. People are key to Wal-Marts business and it invests time and money in training people, and retaining a developing them. Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA). It has also created a joint venture with Bharti in India.

WEAKNESS
Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.
Wal-Mart is facing competition in North America with stores such as Kmart and Target. Several smaller retailers, primarily dollar stores, such as Family Dollar and Dollar General, have been able to find a small niche market and compete successfully against Wal-Mart for home consumer sales. Wal-Mart is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.

OPPURTUNITIES OPPURTUNITIES

To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets. Example bharti-walmart in India.

The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets.

THREATS Threats
Being number one means that you are the target of competition, locally and globally.
Being a global retailer means that you are exposed to political problems in the countries that you operate in.

Strategies
The three main strategies of Walmart are Integration Diversification Expansion A focused strategy is in place for human resource management and development. Corporate Culture The company's competitive strategy is to dominate every sector where it does business.

Lower price

Minimize expenses

Maximize sales volume and industry turnover

Good things about Walmart

Respect for individual Service to customers

Striving for excellence

FLIPSIDE OF WALMART

VIOLATION OF FAIR LABOR STANDARDS ACT

Wal-Mart was found guilty in a lawsuit that charged that managers got employees to work off the clock by asking them to clean up the store after they had clocked out and by deleting hours from time records.

UNION BUSTING
Each new employee is shown videotapes explaining the corporations open door policy where complaints can be directed to others above ones immediate superior. It is said to serve as an alternative to unionizing. Employees have also reported Wal-Mart officials trailing them around the store and spying on them in their homes. Management denies both of these practices.

WILL IT SUCCEED OR NOT???

OUT OF CITY LIMITS

Everywhere in the world including US, all Wal-Mart stores are located at-least 10 kms away from city center. Well considering that, in India, most of cities have sky rocket real estate prices, the only place where Walmart can set up such large scale formats is out of city center.

EVERYTHING UNDER ONE ROOF

The idea of Walmart is to have everything under one roof, from farms produce to do-it-yourself kits for plumbing or even a refrigerator. The model is "jo dikhta hai woh bikta hai". So when a person comes to buy one thing he ends up buying more.
But in India when was that you went up buying everything at one stroke? Does an average Indian buys grocery and other stuff at the same time?

PERSONAL TOUCH
The most critical reasons for Indians to buy from a specific "kirana" store is the personal touch. Though Walmart has its own way of customer service, it cannot beat the personal touch of the Indian marwaris who sell at the local "kirana stores".

IDEA OF BUYING A MONTHS SUPPLY

The whole idea behind Walmart business model is to buy the goods which one may require over a period of month and buy it in wholesale, without needing to go to kirana stores. Indians mostly avoid eating anything which is stale for more than 2 days.

Well though there is scope for Walmart in India to succeed, but its overall success will remains moderate

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