Download - Business strategy- Walmart
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BUSINESS STRATEGY
Wal-Mart Stores, Inc
GROUP: UNKNOWN
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CONTENT 1.What is Strategy?
2.A definition of Business Strategy
3.Types of Business Strategy
4.Business Strategy of Walmart Stores, Inc
5.Conclusion04/10/2023Nguyễn Thành Luân
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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.
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Strategy bridges the gap between ends and means
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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.
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The Importance of Strategy
STRATEGY
attaining and maintaining a position of advantage
over adversaries
is about shaping the future" and is the human attempt to get to "desirable
ends with available means"
“a pattern in a stream
of decisions
”
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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
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Significance
STRATEGY
change-stimulatin
g
informational
Motivating
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Significance
Monitoring how well
business is doing over
time Deciding the next step to
take in business in order to be
successful“TOOL”
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Function
to increase the earning potential and success of a particular business
choosing the most profitable niche for a market to promote a business
to improve a business or make a business better than its competitors
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3. Types of Business Strategy
Costleadership strategies
Differentiated
products and
services strategies
Focus strategie
s
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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
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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
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Focus Strategies
the firm can, through this
focused approach,
serve a particular
market better than anybody
else
is really a hybrid of the
cost and differentiation strategies
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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
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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
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Company Overview
Discount Stores
Super-centre
s
Sam’s
clubs
Marketside
US retail formats
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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)
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Business Description
• Wal-Mart is the largest retail company in the world.
• It operates retail stores in various formats worldwide. Wal-Mart offers a wide assortment of merchandise at everyday low prices in its retail stores.
• E-commerce websites services.
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Business Description
Walmart US Sam’s Club International Segment
Business Segments
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Business DescriptionMexico The UK
Japan India
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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
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Business Description• Dry and wet glocery• Beverages• Frozen food• Jewellery etc
Products
• Photo processing service• Cellunar service plan• Money order services
Services
• Walmart• Great value• Sam’s choice
Brands
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Tesco PLC
Metro AG
Amazon
Inc
CVSCaremark
Staples
Inc
COMPETITORS
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SWOT AnalysisSTRENGTHS
• Powerful retail brands, large scale of operation worldwide
• One Stop Retail• Strategic business
programs• Efficient working
capital management
WEAKNESS• Self Cannibalization• Involvement in
numerous legal issues
• Continuos product recall
• Community relations problem
OPPORTUNITY• Global food safety
initiative standard• Increasing demand of
online sales• Increasing
opportunity in growing economy
THREATS• Intense competition• Price matching
program by target• Foreign currency
fluctuation
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Walmart business strategy
WALMART'S AGGRESSIVE
PRICING(Cost
leadership)
Mission “to provide a wide variety of high quality,branded and unbranded products at the lowest possible price”
Efforts to procure products at the lowest prices possible from manufacturers
Walmart products are usually priced 20% lower than those of its competitors
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WALMART'S AGGRESSIVE PRICING
• Generating more profits due to larger volumes soldProfits
• Reinvested in facilities (equipment, technology)
Surplus
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WALMART'S AGGRESSIVE PRICING
Wal-Mart imposes a
strict control on its
overhead costs
• Ensuring that the rent paid was minimal
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MARKETING STRATEGIES
• “Customers would be provided what they want, when they want it, all at a value”
Customers
• “Treating each other as we would hope to be treated acknowledging our total dependency on our associate- partners to sustain our success”
Team Spirit
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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
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MARKETING STRATEGIES
• Increasing in segmentation in order to better serve the customers
Customer Data
• Improving inventory management and reduced cost
Radio frequency ID tags and E-
check conversion
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WALMART CUSTOMER SERVICE
Thinks like customer
Give a good value in
product for customer
Sell what customer wants to
buy
Exceeds customer
expectation
Ensures that customer
enjoy themselves in
process
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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
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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
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Deve
lopm
ent
of
Walm
art
logo
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WALMART STORES, INC
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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.
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G R O U P