Question

Provide a case analysis on Walmart. If possible please provide 10-12 powerpoint slides on the analysis

Answer 1

Walmart is the largest retailer in the world in terms of revenue and sales. It was founded in 1962 by Sam Walton. It consistently features in the Forbes 500.It is the world’s largest employer with 2 million employees.

Walmart stores:-
The largest divison of Walmart which is source of major chunk of revenues.
The walmart stores are further classified into:-
1.Walmart discount stores:-
Walmart discount stores are discount department stores with size varying from 51,000 square feet (4,738.1 m²) to 224,000 square feet (20,810.3 m²)They carry general merchandise and a selection of groceries. Some also have gasoline stations.

2. Walmart Supercenters

Walmart supermarkets cover larger areas with an average of about 197,000 square feet (18,301.9 m²).These supermarkets not only stores what discount stores keep but also provide meat and poultry, baked goods, delicatessen, frozen foods, dairy products, garden produce, and fresh seafood. Many Wal-Mart Supercenters also have a garden centre, pet shop, pharmacy, hair and nail salons, video rental stores, local bank branches etc

3. Neighbourhood Market

Walmart Market is a chain of grocery stores that average about 42,000 square feet (3,901.9 m²). They are used to fill the gap between discount store and supercenters, offering a variety of products, which include full lines of groceries, pharmaceuticals, health and beauty aids, photo developing services, and a limited selection of general merchandise.

Competitors

The main competitors for Walmart have been Cerrefour, France and Tesco,U.K in European markets. In US Kroger Co is its main threat. Moreover Walmart faces stiff competition from local retailers in other countries. Its latest competitors are Amazon, Yahoo and other online sales sites which are a threat to the e-commerce wing of Walmart

Walmart Marketing Strategy

Walmart has a very aggressive marketing strategy to woo the customers.

Walmart market (Neighbourhood market):-
The Neighbourhood markets, later renamed as Walmart market were smaller stores with hassle free buying, faster checkouts and excellent parking facility to attract their customers. They were located in suburbs and were closer to the residential areas to target them better.

Online Marketing campaign:-
Walmart has online retail to capture certain sections of society .It has started “My Local Walmart Facebook” with the objective of creating a micro merchandising strategy at stores and to create a local presence among customers. They have also developed various Walmart shopping applications to further captivate the customers. These facebook and shopping applications helps in capturing current trends and the mindset of the customers. Even the youtube videos in how to find your nearest Walmart store has received rave reviews. Morever the facebook application also targets mothers who always discuss among themselves about products, their experiences in Walmart, etc which helps in further promoting Walmart. Walmart even tied up with yahoo to attract lot of Moms and understand their needs.

Mobile marketing Strategy:-
Walmart’s acquisition of “Grabble” helped them to send online receipts to customers and in the process capture data regarding sales. A hardware attached to the Point of sales systems helped them to send online receipts. Everybody was impressed by the digital money receipts and it became a point of discussion for the customers.

Merchandising:-
Their “Low prices every day on everything” and” Christmas Price Guarantee” schemes promoted the fact they were master at selling on the lowest possible price. This also helped in creating a perception among public regarding the lowest prices at which Walmart sells.They also claimed to provide gifts if he customers found cheaper goods than Walmart whose value would be equal to the price differential

                                          SWOT   Analysis of Walmart:-

Strengths:-
1.Strong and efficient Supply chain supported by latest technology.
2. Bargaining power of Walmart among its vendors.
3. The reach of Walmart to the masses.
4. The frugality with which they deal with their vendors helps them pass on cost benefits to their customers directly.
5. Huge growth in US and international market.
6. Strong Market Position and highest market share.
7. Credit rating of AA which is highest in retail Industry.
8. Own fleet of trucks, trailer and tractors keep transportation costs at bay.
9. It allows people to buy a gamut of goods under one roof.

Weakness:-
1.Low priced products means the profit margin is at its lowest.
2. Any fluctuations in input costs, imports costs, etc can impact profits a lot.
3. High volumes of imports from China create over dependency on China.
4. The shabby condition of certain stores of theirs.
5. There is no trade union in Walmart which draws heavy criticism and the employee satisfaction is low.

Opportunities:-
1.The Asian continent provides a big opportunity since there is a huge potential for organised retail.
2. India is a unexplored market in retail industry and it has huge growth potential.
3. The mobile applications and social networking sites provide ample opportunity to connect with the customers and understand various trends among the customers.
4. The ecommerce provides huge opportunity for Walmart to further increase their base.

Threats:-
1.Walmart faces intense competition from international retailers, retailers at local level, etc
2.Walmart reputation has been tarnished due to allegation of gender bias.
3. The resistance from local vendors from its entry .e.g. India
4.Theallegation of predatory pricing on Walmart may tarnish its reputation abroad.

Best of Luck. God Bless