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INDUSTRY ANALYSIS -RETAIL COMPANY-WALMART
- 2. Overview of Retail Industry Global Retail Industry revenue -23.45 trillion US dollars (2017) Forecasted revenue – 28 trillion US dollars (2020) Industry Group Segmentation - Specialty retail - Multiline retail - Catalog and internet retail Global Retail Market Segmentation Asia Pacafic , 26% Europe, 34% North and South America, 33% Rest of the World, 7% Asia Pacafic Europe North and South America Rest of the World
- 5. Wal-mart Strategies CoreStrategy CORE STRATEGY Low Cost Leadership Strategy Walmart’s value proposition is based on offering Everyday Low Price (EDLP). This is the core of Walmart’s Business Model and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price Wal-Mart achieves a cost advantage by controlling its cost drivers and relentlessly wringing cost efficiencies out of its supply chain.
- 6. Wal-mart Strategies Complementary strategies COMPLEMENTARY STRATEGIES Vendor Relationship It collaborates closely with suppliers with strong brand- name who are dominant in their category, who have full product lines. To deliver low price, Walmart exchanges information on sales and inventory levels based on “Vendor Partnership” concept. It spends considerable time meeting with vendors, understanding their cost structure, and learning how a vendor could cut down its costs in order to capture win- win relationships for both parties.
- 7. Wal-mart Strategies Complementary strategies Location Selection Wal-mart focused on rural suburban areas ignored by other companies. Establishing stores close to distribution center, it developed a dense distribution network that allowed the firm to spread costs and exploit economies of density. As Wal-Mart enters foreign markets, it intends to “remain local” by customizing its offering to match the taste and preferences of local buyers and operating through the management of natives of the foreign countries.
- 8. Wal-mart Strategies Complementary strategies Product Selection Walmart gives its customers a wide range of selection. It offers grocery items in super centers. Sam’s club caters to the wholesale purchase need of customers. Experiments in store layout, merchandise displays, store color schemes, and promotions are always under way. Wal-Mart also engages in preemptive strikes especially when it enters a new market by securing a dominant position in the geographic area and forcing smaller retailers out of business.
- 9. Wal-mart Strategies Supporting Strategies SUPPORTING STRATEGIES Marketing and Sales Wal-Mart meets customers’ needs with four different retail concepts: Discount stores, Supercenters, Sam’s Clubs and Neighborhood markets. Investment inTechnology Wal-Mart is a first-mover in upgrading and improving its technological capabilities. Wal-Mart invested heavily on technology to help enhance communication between headquarters, stores, and vendors. As a result inventory costs decreased and inbound logistics became more efficient.
- 10. Wal-mart Strategies Supporting Strategies Distribution Center Operations Several labor-intensive tasks had been automated and cost-efficient system of conveyors, bar-coding and handheld computers have been utilized to continuously streamline distribution operations. Customer Service Walmart implemented policies to create friendly shopping environment for customers. It started its “Aggressive Hospitality” program in 1984, where customers were received by “people greeters” and they enjoyed benefits such as extended opening hours, free parking, no hassle refund and exchange policies, speedy checkout lanes, wider aisles, and clean stores.
- 11. SWOT Analysis
- 14. Recommendati ons Must adopt a friendlier corporate attitude. It needs to relax its anti-unionization policy Improve public perception that Wal-Mart can destroy communities International expansion should be done with the help of Local retailers.
- 15. THANKYOU