1. Wal-Mart Worlds biggest retailer. Largest Public corporation by revenue. First store opened at Arkansas in 1962 by Sam Walton. One of the Worlds largest Private Employer. Wal-Mart has different types super stores, supermarkets, and Wal-Mart discount stores.

2. Contd Today, Wal-Mart operates more than 10,000 retailunits under 69 banners in 27 countries. It employs 2.2 million associates around the world 1.4 million in the U.S. alone. Wal-Mart offer a one-stop shopping experience for electronics, apparel, toys and home furnishings with the added convenience of a grocery store with fresh produce, bakery, deli and meat and dairy products. 3. Wal-Mart Wal-Mart MissionTo give ordinary people the chance to buy the same thing as rich people.Product strategy1. Lowest prices across the product lines 2. Product Core competencyLow Prices, In-stock positions, Customer service.Service strategy1. Respect for the individual. 2. High standards of service 3. Constant strive for excellence.SegmentationMiddle-class, Lower middle classPositioningConsistent Positioning through always low prices 4. SWOT Analysis Strengths: 1. Wal-Mart has grown substantially over recent years,and has experienced global expansion. 2. Deal with Suppliers - Cost Leadership 3. Efficient Supply Chain. 4. Strong IT backup The company has a core competence involving its use of IT to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. 5. Contd Weakness:Unable to adapt to different cultures/countries. Eg:Germany. 2. Heavily dependent on bulk sales. 3. No success beyond Americas. 4. Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility as compared to its competitors. 1. 6. Contd Opportunities:Enter New Economies - India/ China/ Brazil. To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets. 2. Rising disposable incomes. 3. New Channels- Marketing / Internet based models. 4. J.V with some leading players. 1. 7. Contd Threats: 1. 2. 3.4. 5.Restrictions on FDI in India. International law against dumping. Regional competitors. Law against Monopoly anti thrust policies. Political Problems. 8. Wal-Mart Expansion: Past Track Record CountryModeStrategyResultsCanadaAcquired a Weak PlayerOperating in markets which required min. adaptation. High Brand Recognition Segment.Very SuccessfulUKAcquired ASDAM & A SynergiesSuccessful Competition from Tesco.GermanyAcquired a Big Player WerkaufLeveraged Acquired NetworkFailed-cultural & operational issues.ChinaGreenfield OperationsSourced from Chinese suppliers; focused on need gaps.Neutral Labour Union and Law Suit issues. 9. JV of Bharti-Walmart On November 2006, Wal-Mart Stores Inc. and BhartiEnterprises Ltd. signed a (MoU) to explore business opportunities in the Indian retail industry. Bharti's JV with Wal-Mart is for cash-and-carry stores (wholesale) --- which sell products in bulk to other retailers. Bharti manages the front end, involving opening of retail outlets, while Wal-Mart takes care of the back end operations, such as cold chains and logistics. Bharti-Walmart operates stored in India under the brand name "Best Price Modern Wholesale". 10. Contd 90 per cent of sourcing would be from the local marketand going forward this joint venture would help in in-creasing Wal-Marts global sourcing from India. Products- are food, FMCG, vegetables, general merchandise and electronics. Members/cust.- are small kirana shop owners, hotels, restaurants, schools, colleges, the police force and even the Indian Army. 11. Contd 50:50 joint venture: In India, Wal-Mart has a 50:50joint venture with Bharti Enterprises in the wholesale cash-and-carry segment. Direct Farm Program: Partnership with 110 small and marginal farmers encourages cultivation of safe, highquality, seasonal vegetables. Training centers: Bharti-WalMart (Best Price Modern Wholesale) intends to set up its own training centers to train less-privileged youth to work in retail stores. 12. Key Challenges in India FDI Restrictions FDI Restrictions of 51% on Multi-brand Retail. Social & Political Resistance A strong opposition from certain political parties is certainly expected in some parts of society local retailers, dealers would protest. Countering deep penetration of Mom & Pop Stores Especially in Tier-II & III cities, the network of Kirana Stores is extensive. Also sales on credit facility is available which Wal-Mart cannot do. 13. Contd Poor Infrastructure will cause friction Indian standards of roads, ports & freight facilities are way below global benchmark. It will lead to inefficiency in the value chain. Regional Diversity amd heterogenity Challenge to have tactics according to regional/ ethical requirements. 14. What brings Wal-Mart to India? Retailing in India is emerging as one of the largestindustries, with a total market size of $450 billion in 2012 and growing at a grwth rate of 5%. A tremendous market Emergence of middle class. Consumer spending growing rapidly - 60% of Indian population is in age group of 20-30 & is more inclined towards modern shopping. With the opening up of Indian Retail sector for FDI up to 51% Findings in multi-brand retail, India is set to become hub of Multinational Retailers from across the Globe. 15. Contd India's position as the world's second-largest producerof fruits and vegetables- so, refrigerated distribution of fruits and vegetables can add value to customers by means of low price and wide range of merchandise. 16. Competitors of Wal-Mart in India NAMESCATEGORYTARGET SEGMENTBig Bazaar (Future Group)Diversified MerchandiseMiddle ClassPantaloons (Future Group)Apparels, AccessoriesUpper Middle Class + Lower Middle ClassShoppers StopApparels, AccessoriesMostly Upper ClassStar Bazaar(Tata Group)Diversified MerchandiseUpper Middle Class + Lower Middle ClassSpencers More D martMerchandiseMiddle Class +Upper Middle ClassLifestyle 17. Strategic Gaps of Wal-Mart. Wal-Mart is limited mainly to Metros, Tier-I cities.Huge potential lies in sub-urban, rural markets, Tier-II & Tier-III cities. Geographical Gaps Markets like North East of India are yet to be explored. Truly Global Shopping Experience missing in Indian Retail Stores. ( Wal-Mart has to incorporate Indian Values & preferences while designing the business model. Focus on strategic gaps critical for its eventual success.) 18. Negative effects due to Wal-Marts entry in the Indian retail industry Loss of BusinessMany of the small scale department stores in India are the major contributors to the Indian economy, the entry of Wall- Mart into Indian market may lead to loose the business to many of the middle and small scale people. Low price products Wall- Mart in order to capture the Indian market is trying to introduce low price strategy on their products which in turn affect the other local businesses. Local traders later also should implement this pricing strategy which may affect their profit margin. 19. Contd Creates excess competitionDue to the entry of Wall Mart into the Indian market the competition may increase between local retailing businesses like Pantaloon, Reliance etc. we can see a tough competition between these business units in future . Local traders Local traders from the major of the cities were opposed the entry of retail giant Wal-Mart especially in Delhi because it will affect the local traders or business man and also for small retail shops. 20. Positive effects due to Wal-Marts entry in the Indian retail industry Win-Win situation for farmers-The profit realization for farmers selling directly to the organized retailers is expected to be much higher than that received from selling in the mandis. Improvement in supplychain/infrastructureIncr. in invst. in both forward and backward infrastructure such as cold chain and storage infrastructure, warehousing and distri.n channels thereby leading to improvement in the supply chain infrastructure in the long run. 21. Contd Inflow of massive capitalWal-Mart would bring in needed invst that would spur the further grwth of retail sector. High invst would be important for the sustenance during economic slump, otherwise co. would be out of market. Such as the case with Vishal, Subhiksha and Koutons, which couldn't arrange for funds. More jobs across the supply chain. It would lead to the creation of millions of jobs as massive infrastructure capabilities would be needed to cater to the changing lifestyle needs of the urban India who is keen on allocating the disposable income. 22. Contd Wal-Mart's entry in India would bring with itself the technical know-how, global best practices, quality standards and cost competitiveness Reduction in losses of agriculture produce. Removal of unnecessary intermediaries in retail value chain. World class stores with good customer service Everyday Low Prices Quality assortment of merchandise Increased govt. revenue.