1. Presentation by David Kamore

2.  Founded in 1969 by Sam Walton and joined NYSE in
1972
 Aims at providing everyday low prices through solid
financial performance, investment in customer
relevance and commitment to a better world
 Conducts it operations in varied formats including
warehouse, discount stores, supercenters dealing with
wide variety of merchandise/products
 Has three main business operations classified as :
national branch within United states, overseas branch
and Sam's Club.

3. 1.Political Factors
 High political stability and
substantial influence
 Globalization
 Threat: Escalating labor
and healthcare costs
2. Economic Factors
 Growth in 3rd World
countries
 Decreasing
unemployment rates
3. Socio-cultural Factors
 Ever changing lifestyle
dynamics
 Variety in cultural
patterns and behaviors
4. Technological Factors
 Business analysis and
trends e.g. e-retailing
 Improved usage of
technological devices by
customers i.e. phones
 Escalating Business
automation

4.  Wal-mart has dissected the market based on the
following :
Demography- e.g. age, race, occupation ,religion factors
Geographic- locations e.g. nation, countries, states, cities
 Behavioral- i.e. attitudes, knowledge towards products
 Psychographic –lifestyles, social classes, personal traits
 This is beneficial in that it helps Wal-Mart:
Develop new products and services to suit unique
consumers
Know what products to supply to whom and where
Establish if customer satisfaction is reached
Design or package products as per gender preferences

5. STRENGTHS WEAKNESSES
Huge market share and diversification in
products
Its every day low pricing strategy for its
products
Set up of small format stores increasing
its competition in the market
Internal control play that provides a solid
foundation for growth
Wal-Mart’s labor relations significantly
affected by increasing lawsuits
Violation of anti-corruption cases
OPPORTUNITIES THREATS
Wal-Mart has strong performance
compared to other retail sectors
emerging in the market
Improvements in online retailing to
enable the company serve a wider
market
Wide acceptance of custom made
merchandise
Significant Increase in competition from
other channels
Escalating labor and healthcare cost
because the company has over 2M
employees

6.  Out of its product categories, Groceries and other consumables account for the
largest category- 56% of the sales for Wal-Mart
 Adopts low pricing strategy
Competitive Analysis
 Distribution Analysis-Sam’s club has 15 times and 4 times the market share
as that of BJ’s and Costco respectively .However, Wal-Mart monopoly markets
have got a lower population density and lower purchasing power ($38000)as
compared to its competitors (42000-$45000)
 Price Analysis-Wal-Mart like its competitors tries to achieve the lowest price
possible while maintaining high quality for its customers
 The second largest retailer – The Company is also keen on delivering high-
quality products at a discount. Other rival organizations for instance Costco are
taking necessary measures to equalize the playing field by also lowering prices
and ensuring high-quality goods
 Products and Services Analysis-Wal-Mart offers a wide range of a variety
of products to ensure it caters for all its consumers needs. It deals with
both its own products label and other brand merchandise as well

7. As regards to products, Wal-mart:
Offers a great wide variety including groceries, beauty ,
sporting ,home, pharmaceutical, wireless transfer
Strategically arranges products based on urgency, frequency
of purchase for easy accessibility
Developed unique brands allowing cut in advertising costs
e.g. Sam’s Choice, Ozark
Ensures safety and quality control of products through
actions like requiring all suppliers to adhere to Global
Initiative for safety food, SPARK system
Aims to meet customer needs by maintaining
communication on their products preferences, tastes etc
Offers services e.g. warranting of products, installation ,
product plan replacement, general merchandise plan
services appealing to consumers

8. Adopted product packaging reflective of global concerns e.
g environment friendly packaging
Have consistently availed its products at an affordable
pocket friendly price
Competitive Advantage
The distinctive features packaging, branding, differentiation
and others features allow for low pricing placing Wal-mart
ahead of other retailers
Yields advantage in economies of scale in selling products
and services
Follow up system allows for evaluation on level of customer
satisfaction, attitudes ,tastes and preferences and
subsequent action to meet them
The branding allows it maintain quite a large market share
e.g. Great Value product brand

9. Wal-Mart has managed to develop continuously a considerably complex but
highly efficient distribution system comprising several channels and equally
top notch strategies such as:
 Open and free flow of information in the organization and its partners
 Utilization of technology in its distribution networks and its other operations-
e.g. codes, conveyor systems
 Use of innovative distribution methods-the cross docking mechanisms and
the consolidation system for products removing storage costs
 An elaborate transport system comprising of its own fleet of trucks
Competitive Advantage
 The elaborate and effective distribution framework allows for savings in time
and cost enabling for low pricing. All above strategies ensure proper
coordination, smooth movement of products and services, free flow of
information critical in decision making, utilization of technology increases
accuracy and efficiency in handling products from suppliers to consumers,
better control of distribution serves to increase consumer confidence and
dependability for delivery and provision of products resulting to huge
consumer base , huge sales volume, huge returns for the company placing
it ahead of its competitors

10. Promotional strategies used by Wal-mart include:
 Repetitive and consistent message as an every day low price organization
 Use of one platform to provide all information to consumers i.e. Wall mart
website
 Uses Intensive marketing communication which requires feedback from
consumers
 Advertisements through television, magazines, posters and the internet
,billboards
 Sales promotion through coupons, discounts and selling under private
brand name
 Personal selling –assistants provide personalized help and information
desks set up for promotional products
 Public relations-one stop for information about company, its policies
,corporate social responsibility (Wal-Mart foundation)
Competitive advantage
Wal-Mart is able to improve its public image ,build customer confidence,
introduce new products , able to predict stock movement and spend less
on advertising utilizing the above strategies catapulting itself at the front of
the other retailers

11.  Wal-mart has employed everyday low prices strategy achieved through the
following ways:
 Focus on sales and economies of scales to cover low profit margins
 Reduction of operational costs and savings thereof transferred to
consumers via low pricing
 Diversification of products and strategic locations for stores maintaining
accessibility to high number of consumers
 Elaborate and effective supply chain management and technology
 Bargaining power to influence prices by suppliers
 Implementation of attractive pricing policies e.g. price matching, price
accuracy, discounting initiatives
Competitive advantage
 Low pricing has enabled Wal-mart attract and maintain a huge share of the
market share, realize huge product sales volume, secure its reputation as
low priced , boosting customer confidence and loyalty all which work in its
favor a s compared to its competitors

12.  Wal-Mart should direct more effort towards
addressing its weak areas majorly on employee
welfare and corruption issues
 Maximize on the new opportunities available
including strengthening its electronic commerce ,
and expanding to new markets in the developing
countries among others

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