Download - RM Case Study Walmart
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CASE STUDY DISCUSSIO
GROUP 1ASHREY, AROON, SREENATH, RAM AGARWAL,SONY
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1950: Walton opens first five-and-dime
1962: Walton opens first Wal-Mart in Rogers, Ark.1970: Wal-Mart has IPO1979: Annual sales top $1 billion1985: Wal-Mart has about 880 stores and $8.5 billion in revenue, sm
competitors Kmart and Sears1990: Wal-Mart surpasses Kmart in size1991: Wal-Mart opens first international store in Mexico City1992: Wal-Mart surpasses Sears in size; Sam Walton dies1994: Wal-Mart surpasses in size Kmart and Sears combined
ABOUT WALMART
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A SNAPSHOT
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Core competence in use of information technology to support its interlogistics system.
Example, it can see how individual products are performing country-wstore at a glance.
A focused strategy is in place for human resource management and dPeople are key to Wal-Marts business and it invests time and money
people, and retaining a developing them.
Wal-Mart has grown substantially over recent years, and has experienexpansion (for example its purchase of the United Kingdom based reta
It has also created a joint venture with Bharti in India.
STRENGTHS
STRENGTH
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Since Wal-Mart sell products across many sectors (such as clostationary), it may not have the flexibility of some of its more focused
Wal-Mart is facing competition in North America with stores such Target.
Several smaller retailers, primarily dollar stores, such as Family DoGeneral, have been able to find a small niche market and compeagainst Wal-Mart for home consumer sales.
Wal-Mart is the Worlds largest grocery retailer and control of its empIT advantages, could leave it weak in some areas due to the huge spa
WEAKNESS
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OPPURTUNITIES
To take over, merge with, or form strategic alliances with other glofocusing on specific markets. Example bharti-walmart in India.
The stores are currently only trade in a relatively small number Therefore there are tremendous opportunities for future business consumer markets.
OPPURTUNITIES
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Being number one means that you are the target of competitioglobally.
Being a global retailer means that you are exposed to political prcountries that you operate in.
ThreatsTHREATS
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Strategies
The three main strategies of Walmart are
IntegrationDiversification
Expansion
A focused strategy is in place for human
resource management and development.Corporate Culture
The company's competitive strategy is todominate every sector where it does business.
Lo
Minimizeexpenses
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Good things about Walmart
Respect for individual
Service to customers
Striving for excellence
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FLIPSIDE OF WALMART
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VIOLATION OF FAIR LABOR STANDARDS ACT
Wal-Mart was found guilty in a lawsuit that charged that managers goto work off the clock by asking them to clean up the store after they haout and by deleting hours from time records.
UNION BUSTING
Each new employee is shown videotapes explaining the corporations
policy where complaints can be directed to others above ones immedsuperior. It is said to serve as an alternative to unionizing.
Employees have also reported Wal-Mart officials trailing them around and spying on them in their homes. Management denies both of these
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WILL IT SUCCEED
OR NOT???
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OUT OF CITY LIMITS
Everywhere in the world including US, all Wal-Mart stores are located at-least 1city center.
Well considering that, in India, most of cities have sky rocket real estate prices, where Walmart can set up such large scale formats is out of city center.
EVERYTHING UNDER ONE ROOF
The idea of Walmart is to have everything under one roof, from farms produce t
kits for plumbing or even a refrigerator. The model is "jo dikhta hai woh bikta hperson comes to buy one thing he ends up buying more.
But in India when was that you went up buying everything at one stroke? Does abuys grocery and other stuff at the same time?
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PERSONAL TOUCH
The most critical reasons for Indians to buy from a specific "kirana" store is the
Though Walmart has its own way of customer service, it cannot beat the persoIndian marwaris who sell at the local "kirana stores".
IDEA OF BUYING A MONTHS SUPPLY
The whole idea behind Walmart business model is to buy the goods which oneover a period of month and buy it in wholesale, without needing to go to kirana
Indians mostly avoid eating anything which is stale for more than 2 days.
Well though there is scope for Walmart in India to succeed, but its overall succmoderate
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