Walmart chiến lược marketing

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


How to transfer core
competencies to other
countries?


Outline
• History Overview
- Vision, Mission and Goals
• Interna & External Analysis
-Value Chain
-SWOT & Pestel Analysis
-5 Forces Model
-Main Competitors
•Internationalization
-Driving Forces
-Entry decisions
-Examples of success and failure
•Suggestions


History Overview
• 1962: Walten Brothers opened fist Walmart in
Arkansas
• 1970: Walmart became public
• 1990: 1st National retailer
• 1991: International Expansion
• 1993: Creation of “Great Value”
• 2003: Largest corporation in the world

• 2012: 50th Anniversary


Mission Statement, Vision, Goals, & Purpose
Mission Statement:
To help people save money so they can
live better

Goal:

Becoming in an international brand

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.

Advertising slogans:
Save Money. Live better


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 administration
Human resource management
Technology development
Procurement

Inbound
logistics

Operations

Outbound
logistics

Marketing
and sales

Service


Support Activities
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


Primary Activities
Inbound
Logistics

Operations

Outbound
Logistics

Marketing and
sales

Service

-VMI system

3 business segments:

-Hub and spoke
distribution system.

- Word of mouth
communication.

-accepting returned
goods

- CROSS DOCKING:
logistic technique to
make the
distribution process
more efficient

-focuses on everyday
low prices

-Satisfaction
guarantee

“Save money, live
better”

- Opening
hours(24/7)

(Vendor managed

replenishment

a)WalMart stores
Super centers
Discount centers
Neighborhood
markets

-EDI (Electronic

b) SAM’S Club

Data Interchange

c)WalMart
international

inventory)
continuous

-Sales are on a selfservice, cash-and-carry
basis.

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 Strategy”
• The company owns a fleet of more than 3,000 trucks and
12,000 trailers.
• The Wal-Mart Way – Cross Docking.


Resource - Based View Of The Firm
Competency

Valuable

Difficult to
Rare

imitate

Difficult to
substitute

Conclusion

Integrated technology of supply chain

Yes

Yes

Yes

Yes

Sustainable Compt. adv

Ability to generate large sales volume

Yes

No

No

Yes

Comp. Parity

Superior logistics system

Yes

Yes

Yes

Yes

Sustainable comp. adv

Operation decentralization

Yes

Yes

Yes

No

Temp. comp. adv

Strong culture

Yes

Yes

Yes

Yes

Sustainable comp. adv

Human resources (management team and
employee autonomy)

Yes

Yes

Yes

No

Temp. comp. adv


EXTERNAL FACTORS

INTERNAL FACTORS

Helpful
STRENGTHS
•
•
•

•
•
•

SW

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
areas
• Increasing online sales
• Strategic alliances
Acquiring rival firms

OPPORTUNITIES

Harmful
WEAKNESSES
•Brand image-weak
reputation
•Low global presence
•Behind rivals in ecommerce

• Intense Competition
• Laws and Regulations:
Trade policy
• Cultural barriers
• Current economy
• Slow market growth
• Transport of distinctive
comptency
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.
• Technological: Use of IT technologies. Online
shopping.
• Environmental: Recycling, Contamination issues.
• Legal: More laws and more complex.


The Five Forces Model
1. Bargaining Power of
Customers: Low
I. Customers usually make small purchases.
II. A large number of customers.
III. Wal-Mart’s main customers are

individuals.

2. Bargaining Power of Suppliers:
Medium-Low
I.

Wal-Mart purchases huge quantities of
products from its suppliers.
II. Low switching costs from one supplier to
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
I.
II.
III.
IV.
V.

Economies of scale.
High capital requirements.
Customers mainly look for products with low prices and
standard quality.
Low switching costs among companies for customers.
Requires a precise distribution system.

4.

Power of Substitutes: High

I.
II.
III.

Prices and quality of substitute products are very competitive.
Performance of substitute products are similar.
Consumer switching costs are low.


The Five Forces Model
• 5. Potential Competitors/ Rivalry: High
I.
II.
III.
IV.
V.

Wal-Mart represents the 25% share of the U.S. Supermarket
business.
Competitors have similar sizes.
Industry growth is slow.
Exit barriers are high.
There is a high production capacity
WAL-MART main competitors:

Retailer Industry:
• Target
• K-Mart

Supermarket Industry:
• Dollar 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.

Mission: to Make Target your preferred
shopping destination in all channels by
delivering outstanding value, continuous
innovation and exceptional guest experiences.

Supermarket Industry:
Dollar General
I.

One of the main competitors, pursuing
low prices.
II. Good location in smaller communities is
the main competence advantage.
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.
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
combination )
Present in many different industries and
markets with efficient distribution channels.
Very difficult strategy to imitate by offering a
broad quantity of products at a low price.


Internationalization


Internationalization
•
•
•
•
•

Reasons for expanding abroad
Risks

International Strategy
Success
Key issues