WalMart Analysis

   !  • "##  • $%" -  -  -  -   • && - !"# - $ - $%&& • '& '""( • )*+,-./0 • )*12-33 • )**2-)  4  • )**)-5 $% • )**6- &78 • ,226-9# ( • ,2),-2  " #&( ":9"3;    )( 75&((0#(<(&"#&"= (<#"((<0" "3;&: *'( ""3; +( .# 3 # • 7>?##- –  –  • .3## 5$%  <   '# #"  53#    3#  0 # " &- 3(@: '- - .5  3( - 9(33/A   B - ,:,#3: - $" (("#622C3 - 1D&E::(0&,1D&F,2D&.&: #"-50&&:5  ""## : >>3# A&B  - - >(&3#: - $!5-$#  4EEG$GH9G>E$G  "   "  539#    39#  0 # " >5A# "B   - $!5A$! 5# 63#- B -  - ! - 4#30 3B<3 B  - '303  : - G!I54- # @0 3 F >& : - &"( 7""3;8 - &>">> 3: -  ## -  & # >#A,JK1B [...]...Business Formats 1) Walmart Stores • Walmart Discount Stores 629 in the US • Walmart Supercenter: Walmart Discount Stores + Full Service Supermarket 3,029 in the US • Walmart Market: Previously branded as Walmart Neighborhood Market 199 in the US 2) Sam’s Club Buy in large quantities 611 opened in the US Walmart in the US • • • Distribution Channels “Saturation... serve others by keeping it real and simple Business-Level Strategy: Combined Strategy Walmart combines a Cost-Leadership and Differentiation strategies because: I II III IV V Allowed to achieve a large scale and an efficient supply chain Has its own low-cost brands, like Great Value A unique cost structure that allows Walmart to establish the lowest prices and achieve competitive advantage (best value/price... India Joint Venture 2011 Southern African Countries Acquisition of Massmart Holding Limited Examples of International Success • Mexico: • Canada • Both countries are close and were exposed to Walmart – Largest Walmart s foreign presence (68%) – 38% Retail Market Share in Mexico – One of the most successful international expansion – Acquired Woolco Stores and changed structure ... Trade policy Acquiring rival firms OPPORTUNITIES OPPORTUNITIES Intense Competition OT • • • • Cultural barriers Current economy Slow market growth Transport of distinctive comptency THREATS THREATS PESTEL Analysis • • • • • • Political: Policies on economy, trading agreements (NAFTA…) Economical: Unemployment Rate, slightly increase in consumption Socio Cultural: Faster pace of live- Efficiency is key... geographically •Most different culturally and logistically •Required high financial and managerial resources What markets to enter? Latin America: • Closest markets • Large population •Emerging Markets Walmart International High What Strategy to follow Cost Pressures Low Trans Global National Inter Multi national domestic Low High Local Responsiveness Mode of entry of International Expansion Mode of... General Lowe’s Food Strategic Group Map Customer service/ Price High Low Low Number of Product Categories High Main Competitors Retailer Industry: Target I II III IV Target is the main competitor of Walmart ranked #33 in the Fortune 500 Target offers very similar products Target went abroad in January 2011 I II Mission: to Make Target your preferred shopping destination in all channels by delivering