BusinessStrategy and about Walmart Case

2. 1.What is Strategy?
2.A definition of
Business Strategy
Types of Business
Strategy
Business Strategy
of Walmart Stores,
Inc
Conclusion
3.
4.
5.
Nguyễn Thành Luân
11/14/2013

3. 1. What is Strategy?
A method or plan chosen to bring about a
desired future, such as achievement of a goal
or solution to a problem using available
resources.

4. Strategy bridges the gap between ends and means

5. Examples of Strategy
Planning a plane
trip
• Call a travel agent
• Use the website
of a specific
airline
• Use a website
that compares the
rates of different
airlines
Finding a job
• Using your
current skills to
find a new job
• Becoming an
apprentice for a
trade
• Going to college
for a new career.

6. The Importance of Strategy
attaining and
maintaining a
position of
advantage
over
adversaries
STRATEGY
“a pattern
in a
stream of
decisions”
is about shaping the
future" and is the
human attempt to get
to "desirable ends
with available means"

7. 2. A definition of Business Strategy
A business strategy is a business plan that takes place
long-term in order to help achieve a specific goal or
objective.
Rapid Business Intelligence
Success

8. Significance
informatio
nal
Motivating
changestimulating
STRATEGY

9. Significance

10. Function

11. 3. Types of Business Strategy
Cost
leadership
strategies
Differentiate
d products
and services
strategies
Focus
strategies

12. Cost Strategies
pass along a lot of the
benefits to customers
in the form of lower
prices
a strategy available to
any business
Still be able to price
products and services
at a level high enough

13. Differentiated products and services
strategies
Sell a very unusual product or service
Consumers happily pay the extra amount
because they get so much more for their
money
The key is being able to charge the
customers more for those special features
than the special features cost firm

14. Focus Strategies
is really a
hybrid of the
cost and
differentiation
strategies
the firm can,
through this
focused
approach, serve
a particular
market better
than anybody
else

15. 4. Business strategy of Walmart
Wal-Mart Stores, Inc., branded as Walmart is an American
multinational retail corporation that runs chains of large
discount department stores and warehouse stores

16. Company Overview
• The company was founded
by Sam Walton in 1962,
incorporated on October 31,
1969, and publicly traded on
the New York Stock
Exchange in 1972
• Walmart Stores operate retail
stores in various formats
across the world

17. Company Overview
Discount
Stores
US retail
formats
Supercentres
Sam’s
clubs
Market
side

18. Company Overview
•
•
•
Internationally, the company operates in
Argentina, Canada, China, Brazil,India,UK etc
Currently it employs 2.1 million people in US
The company records revenue of $ 469.162 billion (FY 2013)

19. Business Description
• Wal-Mart is the largest retail
company in the world.
• It operates retail stores in
various formats worldwide. WalMart offers a wide assortment of
merchandise at everyday low
prices in its retail stores.
• E-commerce websites services.

20. Business Description
Walmart US
Sam’s Club
International
Segment
Business Segments

21. Business Description
Mexico
Japan
The UK
India

22. Business Description
• Walmart's investments outside North America have
had mixed results:
In the United Kingdom, South America,
and China are highly successful
Whereas ventures in Germany and
South Korea were unsuccessful

23. Business Description
Products
•
•
•
•
Services
• Photo processing service
• Cellunar service plan
• Money order services
Brands
Dry and wet glocery
Beverages
Frozen food
Jewellery etc
• Walmart
• Great value
• Sam’s choice

24. Tesco
PLC
Metro
AG
Amazon
Inc
CVS
Care
mark
COMPETITORS
Staples
Inc

25. SWOT Analysis
•
•
•
•
STRENGTHS
Powerful retail brands,
large scale of operation
worldwide
One Stop Retail
Strategic business
programs
Efficient working capital
management
OPPORTUNITY
• Global food safety
initiative standard
• Increasing demand of
online sales
• Increasing opportunity in
growing economy
•
•
•
•
WEAKNESS
Self Cannibalization
Involvement in
numerous legal issues
Continuos product recall
Community relations
problem
THREATS
• Intense competition
• Price matching program
by target
• Foreign currency
fluctuation

26. Walmart business strategy
Mission “to provide a wide variety of high
quality,branded and unbranded products
at the lowest possible price”
WALMART'S
AGGRESSIVE
PRICING
(Cost
leadership)
Efforts to procure products at the
lowest prices possible from
manufacturers
Walmart products are usually priced 20%
lower than those of its competitors

27. WALMART'S AGGRESSIVE PRICING
Surplus
• Generating
more profits
due to larger
volumes sold
Profits
• Reinvested in
facilities
(equipment,
technology)

28. WALMART'S AGGRESSIVE PRICING

30. MARKETING STRATEGIES

31. MARKETING STRATEGIES
•
•
They also tailor their merchandise assortment and store
experience to meet the specific needs of a broader customer
base
Currently, WalMart has created over 125,000 new jobs and
the operation of over 3,000 international stores, buying
products from 70 countries
Walmart Employees

32. MARKETING STRATEGIES
• Increasing in
segmentation in order
Customer Data to better serve the
customers
Radio
frequency ID
tags and Echeck
conversion
• Improving
inventory
management and
reduced cost

33. WALMART CUSTOMER SERVICE
Thinks like
customer
Give a good
value in
product for
customer
Ensures that
customer enjoy
themselves in
process
Sell what
customer
wants to buy
Exceeds
customer
expectation

34. WALMART CUSTOMER SERVICE
to have almost
every aspect of their
business centered
on its customer
handles their
customer’s
complaints in a fast
and friendly manner

35. WALMART GROWTH STRATEGY
Maintain current net sales growth of
approximately 12 percent per year
Expand into international markets
that have large population centers
Increasing the overall efficiency of the
organization by reducing operating
costs or cost of goods sold

37. WALMART STORES, INC

38. 5.Conclusion
• The aim of a business strategy is to strengthen a
particular business so that its performance increases
and, in turn, the business becomes more profitable.
 Without a business strategy, a business has no
guide to follow and has an increased risk of not
succeeding.
• Sam Walton - founder of Walmart - whose business
style is that customers and product quality is
paramount has an extremely effective business
strategy for Walmart. It has now become a classic
example for art of successful business plan.

39. GROUP