TABLE OF CONTENTS
Contents
TABLE OF CONTENTS .............................................................................................................. 1
INTRODUCTION OF WALLMART: ................................................................................................... 3
VISION STATEMENT: ........................................................................................................................ 3
MISSION STATEMENT: ..................................................................................................................... 4
HIERARCHY OF WALL - MART .......................................................................................................... 4
WALL - MART'S COMPETITORS........................................................................................................ 5
COMPANY PERFORMANCE .............................................................................................................. 5
INITIATIVES TAKEN BY TOP MANAGEMENT FOR SHAREHOLDERS:................................................. 6
RESOURCES OF WAL MART ............................................................................................................. 6
COMPETITIVE ENVIRONMENT OF WALL – MART............................................................................ 7
1.
General Merchandise Retailing ........................................................................................... 7
2.
Warehouse Segment ............................................................................................................ 8
3.
Direct Competition .............................................................................................................. 8
IMPORTANCE OF INFORMATION FOR WALMART........................................................................... 8
SWOT ANALYSIS OF WALMART: ...................................................................................................... 9
PEST ANALYSIS OF WALMART: ...................................................................................................... 10
PRODUCT LINE OF WAL MART ..................................................................................................... 11
SOURCES OF INFORMATION FOR WALMART:............................................................................... 13
WAL-MART’S INFORMATION SYSTEM ........................................................................................... 14
1.
Customer relationship management .................................................................................. 15
2.
Supply Chain: .................................................................................................................... 15
STRATEGY OF WALMART CURRENTLY: .......................................................................................... 16
1.
Dominance in retail market: .............................................................................................. 16
2.
Expansion in us and retail market ..................................................................................... 16
3.
Creation of positive brands and creates recognition .......................................................... 16
4.
Branch out into new sectors of retail ................................................................................. 17
5.
Competitive strategy of company: ..................................................................................... 17
6.
Public affairs strategy: ....................................................................................................... 17
FORMULATION OF STRATEGIES FOR WALMART: .......................................................................... 17
INTRODUCTION OF WALLMART:
Wal-Mart's history is one of innovation, leadership and success. Wal-Mart was founded
by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New
York Stock Exchange in 1972. It started with a single store in Rogers, Arkansas in 1962
and has grown to what is now the world's largest and arguably, the most emulated
retailer. Some researchers refer to Wal-Mart as the industry trendsetter.
Today, this retailing pioneer has annual revenues of over $100 billion, 3,000 stores and
more than 750,000 employees worldwide. Wal-Mart operates each store, from the
products it stocks, to the front-end equipment that helps speed checkout, with the same
philosophy: provide everyday low prices and superior customer service. Lower prices
also eliminate the expense of frequent sales promotions and sales are more predictable.
Wal-Mart has invested heavily in its unique cross-docking inventory system. Cross
docking has enabled Wal-Mart to achieve economies of scale which reduce its costs of
sales. With this system, goods are continuously delivered to stores within 48 hours and
often without having to stock them. This allows Wal-Mart to replenish the shelves 4
times faster than its competition.
Wal-Mart's ability to replenish theirs shelves four times faster than its competition is just
another advantage they have over competition. Wal-Mart leverages its buying power
through purchasing in bulks and distributing the goods on it' own. Wal-Mart guarantees
everyday low prices and considers them the one stop shop.
Wal-Mart operates in Mexico as Walmex, in the UK as ASDA, and in Japan as Seiyu. It
has wholly owned operations in Argentina, Brazil, Canada, and Puertorico. Wal-Mart's
investments outside North America have had mixed results: its operations in South
America and China are highly successful, while it was forced to pull out of Germany and
South Korea when ventures there were unsuccessful.
VISION STATEMENT:
Walmart's vision statement is to 'promote ownership of Walmart's ethical culture to all
stakeholders globally.' Walmart corporation has guidelines to help associates to uphold this
vision. Some of these guidelines are following all laws, being fair, having integrity, respecting
others and embracing diversity.
MISSION STATEMENT:
Wal-Mart's stores mission statement is 'We help people save money so they can live
better.' Their slogan is 'Wal-Mart. Always low price. Always' A mission statement is
written for customers and employers of corporations. It is usually a short sentence which
reflects the company's purpose, identity, values and principle.
HIERARCHY OF WALL - MART
Wal-Mart is a world leader in the operation of varying types of retail stores. Through
their use of widely recognized product brands, as well as their own private brands, WalMart has been able to surpass competitors in the world of discount stores and super
centers. Wal-Mart operates in the United States through discount stores, super-centers, as
well as Sam’s Club. The company is well represented internationally as well, operating in
such countries as Japan, Germany, and the United Kingdom. Wal-Mart enjoyed a positive
year financially in 2011, with total revenues of $421, 849 million, an increase of 3.4%
from the previous year. The first chart highlights the hierarchy of the company, including
key employees as well as the operating officers for the Wal-Mart’s three segments. The
second chart gives a general representation of Wal-Mart’s revenue percentages by
segment.
WALL - MART'S COMPETITORS
Walmart's competitors would include other big retail chain stores. A direct competitor of
Walmart would be Target. A list of competitors might include: Kmart, Dillard's, Meijer's,
Sears, Big Lots, and Costco. Wal-Mart's major international competitors are
Britain's Tesco, France's Carrefour, and Germany's Metro. Each of these companies have a
competing presence in Chaina the UK, and Japan, with Wal-Mart contending with at least
one of them in many of its other markets
COMPANY PERFORMANCE
Management uses a number of metrics to assess the Company’s performance including:

Comparable store sale,
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Operating income growth greater than net sale growth,
Inventory growth less than sales growth and,
Return on every assets.
Management uses a number of metrics to assess the Company’s performance. The
following are the more frequently used metrics:
Comparative store sales is a measure which indicates the performance of our
existing stores by measuring the growth in sales for such stores for a particular
period over the corresponding period in the prior year. Our Wal-Mart Stores
segment’s comparative store sales were 3.0% for fiscal 2006 versus 2.9% for fiscal
2005. Our SAM’S CLUB segment’s comparative club sales were 5.0% in fiscal
2006 versus 5.8% in fiscal 2005.
• Operating income growth greater than net sales growth has long been a measure of
success for us. For fiscal 2006, our operating income increased by 8.4% when
compared to fiscal 2005, while net sales increased by 9.5% over the same period.
Our SAM’S CLUB segment met this target; however, the Wal-Mart Stores
segment fell short of the target, while the International segment grew operating
income at the same rate as net sales.
• Inventory growth at a rate less than that of net sales is a key measure of our
efficiency. However, our increased purchases of imported merchandise and recent
acquisition activity impact this measure. Total inventories at January 31, 2006,
were up 8.2% over levels at January 31, 2005, and net sales were up 9.5% when
comparing fiscal 2006 with fiscal 2005. Approximately 150 basis points of the
fiscal 2006 increase in inventory was from increased levels of imported
merchandise.
• With an asset base as large as ours, we are focused on continuing to make certain
our assets are productive. It is important for us to sustain our return on assets.
Return on assets is defined as income from continuing operations before minority
interest divided by average total assets. Return on assets for fiscal 2006, 2005 and
2004 was 8.9%, 9.3% and 9.2%, respectively. Return on assets in fiscal 2006 was
impacted by acquisition activity in the fourth quarter.
INITIATIVES TAKEN BY TOP MANAGEMENT FOR
SHAREHOLDERS:
“Wal-Mart is only getting stronger as the world’s healthiest and best-positioned
global retailer,” said Wal-Mart President and Chief Executive Officer Mike Duke
in his letter to shareholders. “I’m pleased with our business and financial
performance last year. But what gives me the most confidence is the changing
landscape of retail around the world, and how our people, our strategies and the
customers we know and care about fit in. Whether it’s everyday low prices, a
seamless shopping experience, the most talented team of associates or our model
for making a difference, we are on the right path.”
Rob Walton, chairman of the board of directors, commented in his letter to
shareholders about the strength of the board’s commitment to corporate
governance principles. In addition, he recognized the service of three directors
who are not standing for reelection to the board. Wal-Mart’s directors are elected
annually.
“We are guided by strong governance principles in our service to shareholders,
and in making decisions that strengthen our ability to serve customers,” said
Walton.
Shareholders will vote to elect as directors 14 nominees, who are listed in the
company’s proxy statement, as well as three other company proposals. These
proxy materials offer shareholders the opportunity to cast their vote via proxy in a
timely manner. Shareholders unable to attend the 2013 Annual Shareholders'
Meeting.
The 2013 Global Responsibility Report, the company's sixth update, includes
information on Wal-Mart’s progress on initiatives including sustainability,
women’s empowerment, charitable contributions, compliance, safety, benefits,
diversity and governance
RESOURCES OF WAL MART
Benefils associated are strategic leaders who make imported decisions that inpact
the well-being of a diverse population of walmart and sam’s club associated the
world largest retailer,we depend on our human resources team to understandthe
connection between fitting the right person to the right joband our border mission
across the globe of improving our customer’s lives and saving them money.we
look to our HR associated to motivate and empower our 2.2Million
associated,workingto ensure that every single number of our team feels uniquelly
fulfilled,callenged and capable of successflly accomplishing his or herrole in our
day to day opereations. The benefits division of wal-mart is committed to the
design and administration of competitivehealth and financial benefit packages.
In early 2007 we collected information on new subsidy deals that had been
announced since the publication of our 2004 report.we combined the old and new
subsidy information with data has been disclosed by about two dozen states on the
employers with the largest number of workers participating in taxpayer-funded
healthcare programs such as Medicaid.
COMPETITIVE ENVIRONMENT OF WALL – MART
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary
competition comes from general merchandise retailers, warehouse clubs and supermarket
retailers also present competitive pressure. The discount retail industry is substantial in
size and is constantly experiencing growth and change. The top competitors compete
both nationally and internationally. There is extensive competition on pricing, location,
store size, layout and environment, merchandise mix, technology and innovation, and
overall image. The market is definitely characterized by economies of scale. Top retailers
vertically integrate many functions, such as purchasing, manufacturing, advertising, and
shipping. Large scale functions such as these give the top competitors a significant cost
advantage over small-scale competition.
1. General Merchandise Retailing
In general merchandise retailing, Wal-Mart’s primary competitors are Target and
Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also
provide retail competition. A survey found that the majority of respondents
favored Wal-Mart over stores like Target and Kmart. Respondents claimed WalMart offered lower prices, better variety and selection, and good quality. The
needs of consumers is an important economic feature in all competitive
environments. What attributes (price, variety, quality, etc.) prompt buyers to
choose one retailer over another is very important in the competitive landscape.
2. Warehouse Segment
In the warehouse segment, Wal-Mart’s Sam’s Club competes harshly with
Costco. Costco has fewer warehouses but greater sales and revenues. Costco
customers also shop at Costco more frequently than Sam’s Club customers and,
on average, spend more each visit as well. Costco’s dominance may be the result
of better innovation. Costco offers luxury items and was the first to sell fresh meat
and produce, and gasoline. This is important because innovation is a key factor in
assessing competitors in an industry.
3. Direct Competition
Wal-Mart is also in direct competition with large supermarket retailers.
Production capacity in the grocery industry is quite populated and Wal-Mart
poses a serious threat to many supermarket retailers, both large and small. Kroger,
Albertson’s, and Safeway are all finding it very difficult to compete with WalMart’s low prices. Because the industry is so crowded, even the large supermarket
retailers are seeking to differentiate themselves in order to stay afloat.
In Short:
In reference to the Five Forces Model, being the largest retailer in the world, WalMart’s position is strong overall. Rivalry among competitors is fairly weak. The
market is crowded but Wal-Mart has the lowest costs, prices, profits, and market
share. The threat of substitute products is also weak. Wal-Mart exerts a great deal
of effort in making sure they are innovative and meeting customer demands. The
bargaining power of suppliers is weak as well. For most producers, Wal-Mart
would be their largest account. Obviously, they would do what Wal-Mart wanted
them to do if they hoped to do business
IMPORTANCE OF INFORMATION FOR WALMART
Having the information in the suitable moment is as fundamental as being able to connect data
that apparently have no relationship between them.
1. Use Of Information Technology
The use of information technology has been an essential part of Wal-Mart's
growth. A decade ago Wal-Mart trailed K-Mart, which could negotiate lower
wholesale prices due to its size. Part of Wal-Mart's strategy for catching up was a
point-of-sale system, a computerized Information system that identifies each item
sold, finds its price in a database, creates an accurate sales receipt for the
customer, and stores this item-by-item sales information for use in analyzing sales
and reordering inventory.
2. Avoid Overstocking
Aside from handling information efficiently, effective use of this information
helps Wal-Mart avoid overstocking by learning what merchandise is selling
slowly. Wal-Mart's inventory and distribution system is a world leader. Over one
5 year period, Wal-Mart invested over $600 million in their Information Systems.
3. Automatic Reordering And Better Coordination:
Wal-Mart use telecommunications to link directly from their stores to their central
computer system and from that system to its supplier's computers. This allows
automatic reordering and better coordination. Knowing exactly what is selling
well and coordinating closely with suppliers permits Wal-Mart to tie up less
money in inventory than many of their competitors. At their computerized
warehouses, many goods arrive and leave without ever sitting on a shelf. Only
10% of the floor space in Wal-Mart's stores is used as an inventory area,
compared to the 25% average for the industry.
4. More Consistent Suppliers:
With better coordination, the suppliers can have more consistent manufacturing
runs, lower their costs, and pass some of the savings on to Wal-Mart and
eventually the consumer. Some 3,800 vendors now get daily sales data directly
from Wal-Mart stores. And 1,500 have the same decision and analysis software
that Wal-Mart's own buyers use to check how a product performs in various
markets.
SWOT ANALYSIS OF WALMART:
1. Strength:
Wal-Mart is the largest wholesaler in the globe. It was ranked number one in 2011
byFortune 500, among the largest companies in America (DATAMONITOR, 2011).
The wide spreadof its operations is exceptional and there is no comparable competitor
of such size. It has beenincreasing its influence in international operations. By it being a
market leader, it is capable of replicating its best strategies regularly on an unrivaled
scale across the globe.
2. Weaknesses:
Wal-Mart is a big box vendor and runs supercenters which necessitate large area for
everynew stock. This limits its expansion in urban places where the space available is
limited. Studiesshow that store sales at Wal-Mart in America have reduced for eight
repeated quarters due to itsmarket place space limitations and costs. Thus, it has become
more crucial for Wal-Mart to comeup with a new set up that accommodates its
limitations and which is more apt to the urban areas.This is because its competitors like
Costco and Tesco are also aiming to come up with newworkable setups. Therefore, if
they manage to be successful then Wal-Mart will have a competitivdisadvantage.
3. Opportunities:
Wal-Mart has been increasing its existence in a number of developing economies
likeMexico, South Africa and Brazil. These economies have been described as some of
the fastinggrowing economies in the globe. By establishing in these places, thus, WalMart is guarantee onincreased volume of sales as time progresses.
4. Threats:
There has been a high increase of employees which indicates a possibility of increase
in payroll expense and health care benefit expenses. The labor expenses
for corporations in theUnited States have been increasing as the health care charges
and wages rose in the recent times.According to business estimates, health care prices
for the US workers are estimated to rise by 8 percent in 2010 and 8.5 percent in
2012. The rise in medical charges continues to outdo inflationand pay rise
(Big Lots, 2008)
PEST ANALYSIS OF WALMART:
1. Political factor:
Wal-Mart is currently operates its operation worldwide. In this operation Wal-Mart
need to follow certain rules and regulation of host countries. Last year 2009,
international operations generated 27.2% of Wal-Mart’s net sales. [via : wikiinvest]
They are facing big challenge from Chinese government and forced to Wal-Mart to
acquire its operation with local firm. Political condition includes political instability,
economic condition, currency regulation, legal and regulation constrains, intellectual
property rights, tax system etc. Wal-Mart’s international operations have greater
impact of host countries law and regulation like Indian government open door for
foreign investment to operate business acquire with local firm. For Eg, currently,
Wal-Mart acquired with Bharati Airtel – leading Telecommunication Company and
open new retail store in year 2009 and shut their operation in Germany and South
Korea.
2. Economic factor:
Economic condition of host countries has greater impact on any business firm.
Recently, Wal-Mart facing high inflation rate and currency devaluations. In US, WalMart facing challenge of high interest rate, higher fuel and energy cost, inflation,
higher level of unemployment, higher consumer debt level, unavailability of
consumer credit, higher tax rates, economic slow down and other economic factor
could adversely affect consume demand of the product or service offering by WalMart.
3. Social factor:
Wal-Mart’s international operation should operates according to local culture of host
countries. It includes population growth, age distribution, career attitude and
emphasis on safety. Trend of host countries affect demand of Wal-Mart’s products
and services.
4. Technological factor :
Nowadays, technology has a grater impact on any business. This factors includes
ecological and environment aspects. Wal-Mart need to invest in Research &
Development activities, automation, technology incentives and respond the rate of
technological change for remain in competitive market and No. 1 retailer. Wal-Mart’s
spend huge amount behind continuous new advanced technology upgrade program.
PRODUCT LINE OF WAL MART
1. Sam's Choice
Compared to Great Value products and to other national brands, Sam's Choice is positioned as a
premium retail brand and is offered at a price competitive with standard national brands. It
typically offers either competitive items in a given product category, or items in categories where
the market leader is an "icon" (for example, Coca-Cola in the soft drink category). Competitive
pricing of the Sam's Choice brand and store branded and generic goods is possible because of the
minimal expense required to market a retail chain's house brand, compared to advertising and
promotional expenses typically incurred by the national brands.
2. Equate
Equate is a brand used for consumable pharmacy and health and beauty items, such as Shaving
cream skin lotion over the counterts medications and preganency tests. its takeover by Walmart,
the formerly independent Equate brand sold consumer products at both Target and Walmart at
lower prices than those of name brands.
3. Mainstays
Mainstays is a brand marketed by Walmart for its low cost alternative of bedding, ready to
assemble furniture, and home decor.
4.
Ol' Roy
Ol' Roy is Walmart's store brand of dog food. Its namesake comes from Sam Walton's bird
dog, and has become the number-one selling brand of dog food in the United States,
surpassing Nestlé'sPurina.
5.
Dr. Thunder
Dr. Thunder is a brand of soft drink produced for Walmart stores. Dr. Thunder was originally
called "Southern Lightning", but the name was changed to reflect its similarities to Dr. Pepper.
Since 2009, Walmart has sourced their store brand sodas from multiple companies.
6.
Special Kitty
Special Kitty is Walmart's store brand of cat food and other cat care products, such as litter and
treats.
7. Parent's Choice
Parent's Choice is the Walmart store brand for baby products, including food, diapers, formula,
and accessories. Like other Walmart store brands, its design and packaging was relaunched in
2010. Parent's Choice is manufactured by Wyeth .
8.
White Stag
White Stag is a brand for women's clothing, footwear, and basic jewelry. Originally founded in
1931 as a skiwear manufacturer in Portland, Oregon, the company was purchased by
the Warnaco Group in 1966, which after the company exited bankruptcy, later sold the brand to
Walmart in 2003.
9. George
George is a brand of more formal clothing for men, women and children. It also consists of dress
shoes, wallets, belts, and neckties. It was created by the British retailer Asda in 1990, and since
Walmart acquired Asda in 1999, it has maintained and expanded it to other markets, notably the
United States, Canada, and Japan.
SOURCES OF INFORMATION FOR WALMART:
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Customers
Suppliers
Employees
Information systems
Competitive study
Environmental analysis
News media
Political action committee
Information from point of sale(POS) scanner
1. Customers:
First source of information is their customers. It is because the basic ideas are
generated by direct users. They act as base for form plan and interpreting about
something.
As the largest retailer in the US, Walmart collects and analyzes an enormous
amount of data on consumer's shopping habits. The big data sets are mined for use
in predictive analytics which allow the company to optimize operations by
predicting customer's habits.
2. Suppliers
Suppliers of different products also provide information about futre market trend
for consumer products which provide help in developing business strategies for
walmart.
3. Employees
Employees have direct contact with customers. The big data sets are mined for
use in predictive analytics which allow the company to optimize operations by
predicting customer's habits.
4. Competitive study:
If the firm makes the study of competitors in the industry, something new about
them can be learned. It also tell how to compete against them.
5. Environmental analysis
Environment study includes external and internal environment of organizations
where all the stakeholders are studied and analysed.
6. News media
News also provide information about current market trend and govt. policies of
the business.
7. Information systems:
In April 2011, Walmart acquired Kosmix to develop software for analyzing realtime data streams. In August 2012, Walmart announced its Polaris search engine.
The amount of data gathered by Walmart has raised privacy concerns.
8. Political action committee:
Also provide information and support to survive in different markets of different
nations and progress there.
9. Information from point of sale(pos) scanner
Some sale point scanners and bar code record provide information about largest
sales of the day and yearly turnover of products.
“Always low prices”. This is the slogan of Wal-Mart, a company that believes that low
pricing strategies can secure their competitiveness in the market. Based on this business
model, Wal-Mart early on applied information technologies to their business process.
Also, Wal-Mart adopted information services to all of their major business areas such as
customer and supplier management, inventory management and supply chain
management (Wal-Mart, 2011). Those information systems are designed to interact with
each other in order to increase the efficiency of inter-departmental relations.
WAL-MART’S INFORMATION SYSTEM
1. Customer relationship management

Traditionally, the activities of Wal-Mart focus on customer
relationship management (CRM).Through CRM technology, the
corporation can generate loyal customers by gathering valuable
information using the CRM software. Furthermore, organisations
also can learn what their customers’ need through interacting with
their customers (Rigby, Reichheld and Dawson, 2003). However,
even though the system performs well, this technology cannot be a
substitute for human interaction as the system is just a tool to
interpret the data. Therefore, in order to operate its CRM system
more effectively, Wal-Mart’s needs to outline clearly its objectives
and job description prior to operating the CRM system. In other
words, it needs to gather data in a well-defined way and ask, for
instance, who are the most profitable customers, why do they buy
from us and not other competitors and so on (ibid).

In this respect, Wal-Mart set a clear strategy and goal. They
understood what their customers wanted and made their customers
think that its prices were cheaper than other shops. As a result, the
CRM system of Wal-Mart successfully managed to evaluate and
cater to its customers’ needs. This can be confirmed by their
market position. Through its CRM system, Wal-Mart can be
regarded as having successfully measured their customers’
expectations. This is the value of IS/IT as a support strategy for
business objectives (Laudon. C and Laudon. J, 2007).

One the other hand, those activities is related to result of efficiency
of the supply chain. It is possible how Wal-Mart efficiently
establish their information system infrastructure. Especially, their
commitment for customer has shown in their supply chain
2. Supply Chain:
Distribution centre and EDI
 Wal-Mart is a retailer that also plays a role as a distributor (wholesaler)
(figure 2). This can have the advantage of setting up an effective supply
chain because there are more opportunities to adopt more information
systems to the supply chain. However, if they cannot control their supply
chain well, the probability of business inefficiency can be higher as WalMart has a double responsibility (and so greater room for economic loss)
as both supplier and provider.
 According to Word and Peppard (2006), an organisation’s desire to
achieve their objectives compels them to find proper ways to manage
given resources. The objective of Wal-Mart is simple. They stick to a clear
strategy: provide the best quality goods with the lowest price. However, it
is very difficult to achieve this objective without effort to reduce
redundant costs. Hence, Wal-Mart has spent a large amount of time and
effort to improve the efficiency of the supply chain. Mondragon et al
(2006) notes that “Reduction of time to market, switching from mass
production to mass customisation and compression of product life cycle
are trends forcing permanent changes to the way companies do business.”
In the current rapidly changing market, the supply chain management
affect businesses, and Wal-Mart is no exception. A series of activities such
as adaptation of IT resources and elimination of redundant operation
processes can be the key factors for a successful business.

In 2003, Wal-Mart needed a new system to support their supply chain and
thus deployed a radio frequency identification system (RFID) at its
distribution centre. Furthermore, due to the fact that Wal-Mart’s business
area expanded, they needed to keep track of their cargos which were sent
different regions. Also, the fact that it now had to maintain a lot of
warehouses across the world became an important matter for Wal-Mart
STRATEGY OF WALMART CURRENTLY:
1. Dominance in retail market:
Walmart is a primary discount retailer for selling their products at lowest
price. Fortunately none of other companies were able to do it till now.
Each of the retail store of walmart is encouraged to perform the work.
Walmart has size and buying power which helps it to implement the
strategies well.
2. Expansion in us and retail market
It employees 1.3 million employees of us. It has 3000 outlets and over 70
distribution stores.
Its expansion strategy is aggressive and powerful.walmart acquires the
local stores and convert them into walmart stores. It introduce new brand
and retain the old brand also to expand the product line they are offering in
just one store at low price.
3. Creation of positive brands and creates recognition
Company gives excess importance to customers satisfaction and try to
retain the products having excess satisfaction. Having best repute is also
one of the concern for company and for this purpose, the company
provides advertisements on tv, radios etc.
4. Branch out into new sectors of retail
Walmart started dealing in automotive, pharmacy repair shop, and house
grocery sales. With excess offerings to customer at cheap rate, it is putting
many retailers out of business.
5. Competitive strategy of company:
It aims to dominate every place where it works.
There are three basic values built by its CEO :
1. Respect for individuals
2. Service to our customers
3. Strive for excellence
Excessive hospitability for welcoming customers on door step. More patriotic display os
stores. Supporting efforts of local community.moreover the price policy as a retailer is
quite different and competitive.
6. Public affairs strategy:
The company is successful in its ability thus far to keep itself out of
headlines.company also takes advantage of some of the politician to be
dominant in its community. Different labor unions are managed well so
that the operations of company are continued without interruption.
FORMULATION OF STRATEGIES FOR WALMART:
Walmart grew quickly by pricing lower than mom and pop retailer often putting them out
of business. By time walmrt realized that small towns and cities can support a large
discount. The company is also an innovator in information systems, logistics, human
resource management. Walmart led the way among American retailers in developing and
implementing sophisticated product tracking system using bar code technology and check
out scanners.
They adopt the formal strategic planning process:
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Select the mission and define the goals
Analyze external competitive environment to identify opportunities and threats.
Analyze internal competitive environment to identify strengths and weaknesses.
Select strategies to build keepingin vie the internal and external environment
Implement the strategy.
For strategy formulation on top management the reports from different departments is
sent to top management which are analyzed and top management and formulate
strategies. The future is predicted and spread the plans to different departmental heads
who translate the goals as per their department and order the subordinates to assign
targets to their teams. The targets are assigned to each member of the teams and goal is
spread to the roots of organization.