Walmart chiến lược marketing

Business Formats• Walmart Discount Stores 629 in the US • Walmart Supercenter: Walmart Discount Stores + Full Service Supermarket.. • Diversity in products & services• Convenient prices

Carla Cordero - Carles De Oleza - Alex Doldán - Patricia Igual - Luis Pérez

How to transfer core competencies to other

countries?

• History Overview

- Vision, Mission and Goals

• Interna & External Analysis

• 1993: Creation of “Great Value”

• 2003: Largest corporation in the world

• 2012: 50 th Anniversary

Advertising slogans:

Save Money Live better

Mission Statement, Vision, Goals, & Purpose

Vision:

“If we work together, we’ll lower the

cost of living for everyone…we’ll give

the world an opportunity to see what

it’s like to save and have a better life.

Customer Target

• “Wal-Mart's targeted demographic:

– Modest incomes

– Shoppers interested in prices

• But the customer base is changing

Internal & External

Analysis

Firms’ Value Chain

General administrationHuman resource managementTechnology development

Procurement

Inbound

logistics Operations

Outbound logistics

Marketing and sales Service

Firms infrasctructure: close connection between headquarter and local stores.

Human resources:

- Based on Interaction practices between company and employees

-Low pay but other benefits (health care plans, retirement plans, or promotion opportunities)

-2.2 million associates globally

-Every time we open a supercenter, we provide roughly 300 jobs

-Women57% of our U.S workforce, 27% of corporate officers, and 20% of our Board of directors

Techonology development: It is the key factor of the company It constitutes a competitive advantage against competitors

- Computer-based technology

POS (Point of sales) system

Satellite System

Procurement:

-Wal-Mart deals directly with manufacturers, by passing all intermediaries

- EDI : Electronic data interchange

MANUFACTURER – WALMART - CUSTOMERS

Support Activities

b) SAM’S Club

c)WalMartinternational

-Hub and spokedistribution system

- CROSS DOCKING:

logistic technique to make the

distribution process more efficient

- Word of mouth communication

-focuses on everyday low prices

“Save money, live better”

-Sales are on a service, cash-and-carry basis

self accepting returned goods

-Satisfaction guarantee

- Openinghours(24/7)

Business Formats

• 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.

1) Walmart Stores

Walmart in the US

Competency Valuable Rare

Difficult to imitate

Difficult to substitute Conclusion

Integrated technology of supply chain Yes Yes Yes Yes Sustainable Compt advAbility to generate large sales volume Yes No No Yes Comp Parity

Superior logistics system Yes Yes Yes Yes Sustainable comp advOperation decentralization Yes Yes Yes No Temp comp adv

Human resources (management team and

Resource - Based View Of The Firm

• Diversity in products & services

• Convenient prices & locations

• Strong market presence

• Customer loyalty

• Strong financial performance

• Cost and pricing advantages over

rivals

• Good supply chain

• Global Expansion: new geographic

•Brand image-weak reputation

•Low global presence

•Behind rivals in commerce

• Environmental: Recycling, Contamination issues

• Legal: More laws and more complex

The Five Forces Model

1 Bargaining Power of

Customers: Low

III Wal-Mart’s main customers are individuals.

2 Bargaining Power of Suppliers: Medium-Low

products from its suppliers.

another.

III Products have a lot of substitutes.

IV Almost all the products are not critical for Wal-Mart.

The Five Forces Model

3 Potential entrants / Barriers to entry:

Medium-High

standard quality.

4 Power of Substitutes: High

The Five Forces Model

• 5 Potential Competitors/ Rivalry: High

business.

WAL-MART main competitors:

Strategic Group Map

Number of Product Categories

Main Competitors Retailer Industry: Target

I Target is the main competitor of Walmart

II ranked #33 in the Fortune 500.

III Target offers very similar products.

IV Target went abroad in January 2011

Mission: to Make Target your preferred

shopping destination in all channels by

delivering outstanding value, continuous

innovation and exceptional guest experiences.

III Strategy: Save time, save money

IV Many items per $1

Mission: to best serve others by keeping it real

and simple.

Business-Level Strategy:

Combined Strategy

Walmart combines a Cost-Leadership

and Differentiation strategies because:

I Allowed to achieve a large scale and an

efficient supply chain.

II Has its own low-cost brands, like Great Value.

III A unique cost structure that allows Walmart to

establish the lowest prices and achieve

competitive advantage (best value/price

combination )

IV Present in many different industries and

markets with efficient distribution channels

V Very difficult strategy to imitate by offering a

broad quantity of products at a low price.

Internationalization

Forces Favoring Globalization

• 3 main reasons

– Saturated domestic market

– United States represents only 4% of world’s

population (missing of 96% of potential customers)

– Emerging Markets with lower disposable income offer huge platforms for growth in discount retailer.

Risks of Expanding Abroad

• Management Risk

– Culture, language, customer

preferences, distribution systems.

• High investment

• Political and Economic risks

• Exchange Rates risk

Entry Decisions

• Important decisions any company needs to face when going international:

– What markets to enter, when and what size.

– What strategy to follow.

– What mode of entry.

What markets to enter?

What markets to enter?

Asia:

•Most distant 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

What Strategy to follow

Trans National

Low High

Local Responsiveness

Global

Multi domestic Inter

national

Mode of entry of International Expansion

Mode of entry of International Expansion

Year Country Mode of Entry

1991 Mexico 50% Joint Venture Cifra

1994 Brazil 60% Joint Venture Lojas Americana

1994 Canada Acquisition Woolco (weak player)

1995 Argentina Wholly owned Susbidiary

1996 China New opening, JV, Acquisition

1998 South Korea Adquisition

1999 U.K Acquisition of ASDA

2002 Japan Acquisition Seiyu

2002 Germany Acquisition of Wertkauf and Spar

2007 India Joint Venture

2011 Southern African Countries Acquisition of Massmart Holding Limited

Examples of International Success

• Mexico:

– Largest Walmart’s foreign presence (68%)

– 38% Retail Market Share in Mexico

Examples of International Success

• China:

– Most populous country

– Lower income in middle-class families

– Adaptation to market

– 85% of products from local suppliers.

Examples of International Failure

• Germany

– Walmart was not able to benefit from economies of scale – Unable to become cost leader

– Mode of entry:

• Wertkauf (right move)

• Spar (wrong move)

– Culture differences

– Low profitability market

– Lost $1 Billion

Examples of International Failure

• India

– Political and legal barriers:

• Foreign companies are not allowed to set up big stores unless they sell only one brand.

• South Korea

– Very demanding customers

– Did not customized to market

– Big companies also fail in South Korea

Key Success Factors

• A supply chain with integrated technology

• An ability to generate large sales volume (economies of scale)

• Every Day Low Prices

• Superior logistics systems

• Decentralized operations

• A strong and unique culture (in U.S.)

Suggestions

“Think local, act global”

Questions & Answers