By Group 2E :
Abbie Hui
Brenda Chan
Cecilia Kwan
Fiona Lam
Kelly Yu
Kristie Sze
Outline
Competitive advantages
 Sustainability
 Recommentdation
 Analysis of China market
 Expansion strategy in China
 E-commerce in US

Competitive advantage

Cost Advantage
 Cost effectiveness
 Superior Distribution Model
Tradtional
Walmart
Walmart
Manufacturers
Manufacturers
Manufacturers
Distributors
Walmart
Walmart
Wholesalers
Customers
Customers
Retailers
Customers
Competitive Advantage

Human Resources Management
 Emphasis on the role of associates
 Incentive for associates to perform
better
Competitive Advantage

Flexibility and Responsiveness
 Management of Information System
 Efficient Decision Making
 Latitude to Set Price

 Committed to ‘Everyday Low Price’
Philosophy
Sustainability
Embedded into the company-- durable
 Intangible--Immobile
 Multi-dimensional competitive advantage
--causal ambiguity


Overall: sustainable
Discount Store
Government policies to encourage foreign
investments
 Intense competition
 Unfavorable

Sam’s Club
Buy in small quantities
 Reluctance to pay membership fee
 Few warehouse clubs in China
 New and pleasant shopping environment
 Good management control skill of WalMart
  favorable

Supercenter
One-stop shopping
 Low price sensitivity of Chinese
customers
 Lack of capital and expertise
 Suitable market niche
  favorable

China Market
Discount Store
 Sam’s Club
 Supercenter




Implementation on Growth
Strategy in China
External

Marketing Strategy

Positioning: High quality, U.S. and global
branded products

Target Market: The middle-class, citizens in
modernized cities
External (cont’d)

Product Strategy
 Products:
 SAM’s Club
 Supercenter
-increase the percentage of foreign
branded products
 Services:
 Premier Customer Service:
“Satisfaction Guaranteed Policy”
External (cont’d)

Pricing Strategy
 “Every Day Low Price”
 Flexible Pricing System:
each store can set their prices
accordingly
External (cont’d)

Promotion Strategy

Advertising
build up brand awareness and image

Credit Bonus Awards Program:
encourage consumers’ repeat purchase
and build their loyalty
Internal
Adopt and modify the major capabilities
and competitive advantages
 *Special attention to cultural difference!
 Human Resource Management
 Hire locally
 Regular training and refresher course

WalMart.com : Facts
Jan 2000 :
 E-shopping service launched
 Separately managed : Accel Partners
 WalMart owns 80%
 Website currently shut down

WalMart.com : Challenges
Increasing Internet access
 40% of towns do not have access
 Recommendation  outsource
 Channel conflict
 How not to lose sales to physical stores
 Recommendation  market
segmentation

WalMart.com : Challenges

Providing quality customer service
 Ranked last (Source : Resource Marketing of
Columbus, Ohio, 2000)
A bad search engine, slow to load
 Recommendation  Provide customer
relations management traning

Conclusion
Sustainable Competitive Advantages
 Cost Advantage, Flexibility,
Responsiveness, HRM
 Causal Ambiguity
 Growth Strategy
 Expansion in China
 E-commerce in US

Q&A
Growth of WalMart.com


By mergers, buyouts and partnerships
 companies with engineering and retailing talent
 eg After buying HomeWareHouse.com, form
new platform
 partnership with Groove Networks, providing
photograph sharing service
Goes public
 resources and funding