Get to know about the strengths, weaknesses, opportunities and threats of Walmart. In this presentation we have shown the various factors which would determine the company's growth.
2. Huge Global Base
• Operates in 27 countries
• Sales per store- 67.67m USD
• Grocery Share of Walmart's net sale in US-
55%
• Walmart's Net sales Worldwide- 514.41bn
USD
• Number of Stores Worldwide- 111300
Physical
• Net revenue grew to $500.3 billion in 2018
and
• $514.4 billion in 2019
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3. Coherent Supply Chain
• Walmart manages an average of $32 billion in inventory efficiently
• Retailer with highest sales per square foot
• Under the initiative called Vendor Managed Inventory, Walmart made
manufacturers responsible for managing their products in Walmart
Warehouses
• Created communication and network with suppliers to maintain low
inventories yet higher sales
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5. Cross Docking
• Cross Docking has greatly reduced the cost fo Walmart.
• In this logistics practice, the products are directly
transferred from an inbound truck trailers to outbound
trucks without any storage warehouses in between
• This has greatly cut down the cost of storage and
Inventory.
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6. Investment in Technology
• The company has spent much more than 11 billion dollars in
technological inducements in its process.
• It has also heavily invested in E-Commerce.
• This has made all Walmart trasactions , fast, error free and easy.
• Walmart can accurately forecast its Global demand, predict inventory
levels to meet, steer customer relationships and manage
transportation lines efficiently
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9. Low Profit Margin
• As Walmart intends to keep low prices of products, their profit margin
per product is generally thin.
• It has to maintain the volume of sales to subsist the profits.
• So it cant abruptly raise the profit levels.
• The changes in profit per year is at the most 2-3%
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11. Walmart has faced numerous lawsuits for
• Unfair treatment of its workers
• Unfair wages
• Unfair promotions
• Inferior batch of products and others
MULTIPLE LAWSUITS PLAGUING ITS IMAGE
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13. Cost Leadership Model Easily Copied
• The Cost Leadership Strategy Model can be easily copied and pursued
by its competitors.
• Moreover there are not many competitive differentiators except
- The Global Business Size
- Economies of Scale drawn from large sales volume and low prices
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15. EXPANSION IN ASIAN MARKETS
• India is a promising market for Walmart.
• Walmart had announced that it would shell out some $16 billion for a
majority stake in the India's largest online retailer,Flipkart.
Walmart is adopting a more surgical approach than the "bull in a China
shop" mentality it has taken in the past, said Paula Rosenblum, managing
partner at Retail Systems Research
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16. • It is pulling out of saturated UK
Market and preparing for India.
• In US, the strategy is to court rich
online buyers.
• About a quarter of its last year sales
$500 bn came from outside the US.
Hence developing and Asian
markets needs to be tapped
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17. Taking Over large Grocery stores
• Walmart has the resources to take over large grocery stores in
prime locations of the world.
• It can alltogether cause innovation in the grocery process
worldwide by making it simple, fast and employing scale to lower
down the prices further and improve storage
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19. POLITICAL PROBLEMS IN COUNTRIES AND
REGIONS
• Walmart is facing many political problems in countries and
regions it celebrate.
• With other major players entering the field, there is a steep price
competition
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