History
Wal-Mart Stores, Inc., branded as Walmart, is an American
multinational retail corporation that runs chains of large discount
department stores and warehouse stores. The company is the world's
second largest public corporation, according to the Fortune Global
500 list in 2013, the biggest private employer in the world with
over two million employees, and is the largest retailer in the
world. Walmart remains a family-owned business, as the company is
controlled by the Walton family, who own over 50 percent of
Walmart. It is also one of the world's most valuable companies. 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. It is headquartered in Bentonville, Arkansas. Walmart is also
the largest grocery retailer in the United States. It also owns and
operates the Sam's Club retail warehouses in North AmericaWalmart
has over 11,000 stores in 27 countries, under 55 different names.
The company operates under the Walmart name in the United States,
including the 50 states and Puerto Rico. It operates in Mexico as
Walmart de Mxico y Centroamrica, in the United Kingdom as Asda, in
Japan as Seiyu, and in India as Best Price. It has wholly owned
operations in Argentina, Brazil, and Canada. Walmart's investments
outside North America have had mixed results: its operations in the
United Kingdom, South America, and China are highly successful,
whereas ventures in Germany and South Korea were unsuccessful.
Saving people money so they can live better Walmart helps people
around the world save money and live better -- anytime and anywhere
-- in retail stores, online and through their mobile devices. Each
week, more than 245 million customers and members visit our 11,000
stores under 69 banners in 27 countries and e-commerce websites in
10 countries. With fiscal year 2013 sales of approximately $466
billion, Walmart employs 2.2 million associates worldwide.
Logos 19621968
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2008present
Operating divisions
Walmart's operations are organized into three divisions: Walmart
Stores U.S.: Walmart Supercenters 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. Most Supercenters are
open 24 hours, and may also include specialty shops such as
pharmacies, banks, hair and nail salons, name-brand restaurants,
vision centers or health clinics.
Sam's Club: Sam Walton opened the first Sam's Club in 1983 to
meet a growing need among customers who wanted to buy merchandise
in bulk. Since then, Sam's Club has grown rapidly, opening more
than 600 clubs in the U.S. and 100 clubs internationally. Sam's
Club helps make saving simple for families and small business
owners.
Walmart International: Walmart became an international company
in 1991, and operates in 26 countries outside the United States.
With more than 796,000 associates and over 6,400 stores
internationally, Walmart leverages their global resources to meet
local needs. Walmart International is currently the fastest growing
part of our business and is led by President & CEO David
Cheesewright.
Strategic Vision and Mission The Walmart Mission Statement is
Saving people money so they can live better. The Ad slogan is, Save
money. Live better. The vision of Walmart is based on 5 values that
guides Walmarts future:
Vision
Chart No.1: Chart showing the five values that guide Walmarts
vision
Hierarchical structure and their key rolesOrganisational
Structure of Wal-MartWal-Marts management structure and management
style model is the created or moulded by Sam Waltons principles and
values. Increasing size and geographical scope of Wal-Mart
determined that the corporate executives should remain in touch
with customers and store operations on constantly basis. Wal-Mart
is constructed into a three product divisional structure. It is a
structure due to which communication between individual stores and
headquarters is close and personal. The divisional structure and
approach is for Wal-Mart's advantage because each division is open
to focus on its efforts on specific goals such as products,
services, or customers. Narrow focus allows the companies to
perform effectively because they pinpoint specific areas which are
needed to be changed and adjusted. Wal-Marts regional vice
presidents are responsible for supervising between 10 and 15
district managers. The divisional structure is divided into three
categories: product, market, and geographic.Product
StructureProduct structure groups employees which are based upon
specific products produced by Wal-Mart. An example of this would be
producing three distinct products, "product a", "product b", and
"product c" and having a separate division for each these
products.Market StructureMarket structure groups employees together
based upon specific markets in which it competes. At Wal-Mart also
a form of market structure is used. It sells products to individual
consumers and business customers. The sales and customer service
departments are organized using market structure. Consumer sales
and consumer customer service function together while corporate
sales and corporate customer service worked together.Geographic
StructureGeographic structure groups employees together based upon
specific geographic location. This is often used by Wal-Mart as it
operates in many areas throughout the United States or in both the
U.S. and overseas.
3. The firms external and internal environment1. WalMarts three
major areas of external environment
1.A. The General Environment of Walmart can be summarized as
follows:a) Economic: Despite the general weakness in the world
economy and the uncertain environment that prevailed, Walmart had
reported sales growth of 11%, amounting to $6.4 billion. The
company's associates were indeed doing the Walmart cheer in faraway
places like Germany, South Korea, China and United Kingdom. In
three decades, it had grown from its rural Arkansas roots to become
the world's largest company, and quite possibly the most powerful
retailer.b) Socio-cultural: Walmart stores were geared toward the
low-income customer segment; headquarters were reflective of the
company's tendency to be tightfisted as they were housed in
warehouse style buildings with minimalist decor. Frugality was a
central tenet at the company, and every associate was expected to
fully adopt this value in all its manifestations. It was also said
that the company is homogenizing the marketplace by letting smaller
towns dictate popular culture.c) Global: Walmart worked globally
under the philosophy: Different store for different folks. As it
grows around the world, it is important to its success that it
exchange best practices among all the countries where it operates.
Walmart launched its globalization efforts with an initial foray
into Mexico, then to Brazil, as well as Argentina. It then
penetrated Europe with its stores in Germany and in the United
Kingdom. Its Asian strategy composed of China, Korea and Japan.d)
Technological: Walmart was a leader in the use of technology to
maximize operational efficiency. Very early on, the company
realized the value of proactive investments in technology and
deployed a private satellite network. Walmart also managed much of
its own logistics through a central hub-and-spoke system of
warehouses and distribution centers. It was estimated that the
corporate logistics handled over million loads each year.e)
Political/Legal: It was said that politicking also made a way
within Walmart as women were discriminated by not allowing them to
sit in supervisory and managerial levels. There are said to be
pending lawsuits waiting for Walmart's notions as the company has
allegedly went against the labor laws.f) Demographic: By 2004,
Walmart was the largest employer in private industry worldwide as
it counted over 1.3 million associates among its ranks. Roughly 65%
of Walmart's management associates started out as hourly associates
and it hired locally for most of its foreign operations.
Internal Environment of Wal-Mart
1.Corporate Structure
The stores of Wal-Mart are considered as one of the large retail
chains of the world. The corporation's operations comprise three
business segments: Wal-Mart U.S. engulfs diverse formats through
which it operates large retail chain in regions of the United
States. These formats and brands come under the umbrella of
Wal-Mart brand. In addition, Wal-Mart is also engaged in online
retail operations which are known as Wal-Mart.com. It is an
international online retail chain that regulates its retail
operations in 14 different countries; moreover, the enterprise
controls different retail stores and restaurants that also include
discount stores in order to retain the consumer. The Sam's Club
comprises warehouse clubs that offer memberships in the U.S. and
caters diverse online retail operations (samsclub.com).
2.Corporate Culture
Culture can be analyzed by observing how the company behaves,
including rituals, routines, systems, histories and structures.
There are certain clues about the presumptions that are mostly
taken for granted. Wal-Mart's rituals of corporate life incorporate
meetings, special events which emphasize what is important to
strengthen the way of doing things.The one major factor faced by
North American companies is the cultural management in Asian
business environment. Most of past literature on international
expansion deals with the issue of workforce diversity and managing
across cultures. National culture is defined as the set of
characteristics, norms, beliefs and values commonly held by a
society. Any practice or procedures, which are against the national
culture of the host country, will result in failure for MNC. The
resulting conflicts between consumer preferences and the company
can have further implications for a business (Michael, pp.
66).3.Tangible resources Financial Resources - Since Walmart is
well-established and is financially stable, it's borrowing capacity
is high, it can readily produce funds for new projects and/or
endeavors. Organizational Resources -Walmart has got big executives
as well top associates. Structure is normally in a regional basis.
These regions are then divided in departmental managers who handle
staff of their own. Physical Resources - Walmart buildings can
generally be found on its roots, the rural areas. Its products for
selling, shipped and delivered to them by the suppliers through
their own sophisticated logistics are easily available within their
locations. Technological Resources - Walmart employ their own
logistics for their product shipping, they also have their own
private satellite network for point-of-sales transmission in all
their stores.4. Intangible resources Human Resources - It was a
well-known fact that Walmart advocates stringent standards of
employment of fair labor practice, but this fact was clouded by its
own employees' cry for abuse and discontentment. Lawsuits were
filed against Walmart for unfair labor practices. Innovation
Resources - Walmart is always full of ideas. They innovate as well
as educate. It evaluated market potential based on economic and
political risk, growth, potential and availability of real-estate
for development; thus, they always know how to tackle every
investment and every innovation that they have in mind.
Reputational Resources - Walmart's reputation with customers is
obviously good since it always maintain a "for-the-consumers"
attitude. After establishing its own products, they seem to grow
more popular among the masses. Their products are always of good
quality, are durable and reliable, since they only partner with the
best names in the industry. They also get to maintain a good name
and reputation with their suppliers as they continue to uphold a
good working relationship with them.5.Capabilities Distribution -
Walmart effectively use logistics management techniques; it was a
veritable logistics with a level of efficiency that rivaled even
dedicated trucking fleets. Human Resources - Walmart motivates and
empower employees through free education and trainings that will
enrich employees' knowledge. They also promote from within, moving
low-level employees to higher positions as a way of retaining and
satisfying employees. Management - Walmart applies effective and
efficient control of inventories through information systems such
as point-of-sales data collection methods Marketing - Walmart is
not into glossy advertisements like its competitors. It limits its
advertising to 12 or 13 circulars a year; circulars that reflected
the same bare-bones approach that the stores has adopted. But its
customer service is superb because of its courteous and respectable
staff. Its merchandising is also innovative and attractive to
consumers. Manufacturing - Walmart's production skills yield
reliable results since it also manufactures its own brand of
products now; its product and design quality are of high standard,
yet still affordable. Research & Development - Knowledge about
what a consumer in a certain location is of great importance to
Walmart, that's why it employs sophisticated R&D from
information gathering, to transformation of these information into
new products and processes.
4. Competitors, Core Competencies, SWOT Analysis,CompetitionIn
North America, Wal-Mart's primary competition includes department
stores like Kmart, Publix, Target, ShopKo and Meijer, Canada's The
Real Canadian Superstore and Giant Tiger, and Mexico's Comercial
Mexicana and Soriana. Competitors of Wal-Mart's Sam's Club division
are Costco, and the smaller BJ's Wholesale Club chain operating
mainly in the eastern US. Wal-Mart's move into the grocery business
in the late 1990s also set it against major supermarket chains in
both the United States and Canada. Some retail analysts see
regional grocery store chain WinCo Foods as serious competition for
Walmart.[150] Several smaller retailers, primarily dollar stores,
such as Family Dollar and Dollar General, have been able to find a
small niche market and compete successfully against Wal-Mart for
home consumer sales.[151] In 2004, Wal-Mart responded by testing
its own dollar store concept, a subsection of some stores called
"Pennies-n-Cents."[152]Wal-Mart also had to face fierce competition
in some foreign markets. For example, in Germany it had captured
just 2 percent of the German food market following its entry into
the market in 1997 and remained "a secondary player" behind Aldi
with a 19 percent share.[153] When in July 2006, Wal-Mart announced
its withdrawal from Germany, its stores were sold to German company
Metro.[96] Wal-Mart continues to do well in the UK, and its Asda
subsidiary is the second largest chain after Tesco.[154]In May
2006, after entering the South Korean market in 1998, Wal-Mart
withdrew and sold all 16 of its South Korean outlets to Shinsegae,
a local retailer, for $882 million. Shinsegae re-branded the
Wal-Marts as E-mart stores.[155]Wal-Mart struggled to export its
brand elsewhere as it rigidly tried to reproduce its model
overseas. In China, Wal-Mart hopes to succeed by adapting and doing
things preferable to Chinese citizens. For example, it found that
Chinese consumers preferred to select their own live fish and
seafood; stores began displaying the meat uncovered and installed
fish tanks, leading to higher sales
Competitor benchmarkingTesco is one of several European
retailers whose entry into Central Europe has changed the local
retailing structure. It grew first through acquisition of local
chains and of chains of Western retailers, and then through
Greenfield investment in new hypermarkets. Government regulations
did not present major problems to its expansion (Mcgowan, Radosevic
& Tunzelmann 2004). ). Tesco is a British retailing company
that is known to have gained large international and domestic
market share. Tesco is the third largest retailing firm behind
Wal-Mart and Carre-Four. Like other retail companies, Tesco wants
to have clients that will patronize their product. The company uses
a loyalty program to gain the loyalty of its clients. Compared to
Wal-Mart, Tesco has started to concentrate on the housing market
but it has not been that successful as of late.
Core Competencies and Competitive advantage Valuable
Capabilities - Walmart has the capacity to neutralize threats or
exploit opportunities Rare Capabilities - Walmart has this inherent
capability that is not possessed by many other retailing stores, it
is the concept that volume and inventory-turn velocity were the
defining elements of competitive advantage in the discount retail
business. Along with the knowledge of this concept is Walmart's
capacity to ran their stores under this concept. Culture- One core
competency Wal-Mart has is its culture. Wal-Marts employees are
hardworking, efficient, and process oriented. In the video The Age
of Wal-Mart it pointed out that Sam Walton, founder of Wal-Mart,
called his employees associates and treated them as partners. He
wanted their input and ideas on how to make the company better.
Also, no matter what Wal-Mart you go into across the country,
Walton wanted you to know you will ALWAYS receive low prices,
excellent customer service, and feel at home. From door greeters to
big charity contributions, this type of culture is rare and
difficult for competitors to imitate. Low Cost Operations- As the
video pointed out, Sears was a leading retailer during the 70s, but
was greatly affected by the recession. They targeted middle class
families, expanded their overhead, and developed in larger cities.
Wal-Mart focused on small towns and lower overhead during this
time. As the economy worsened, people began looking for lower
prices and moving to smaller towns and suburbs. Today Wal-Mart can
generate big sales volume which allows the company to gain profits
with low profit margin giving it an advantage over its competitors.
Distribution- Wal-Mart operates an unrivaled global network of 146
distribution centers (Troy, 2003). Because of this, the
trickle-down effect happens.
SwotStrengthsIn one store they offer a huge selection of goods
at very competitive,if not the best, prices in a one stop store.
Because of their size they can get huge discounts from suppliers
and so pass these savings on to the customers.They manufacture they
own branded goods as well as supply goods from local suppliers and
other major brands.Their size and buying power is a great strength.
They also are frugal in their management style...very careful with
how they spend their money and manage their resources.Wal-Marts
strength is the popularity it has. The company is known throughout
the world. Strength of the company is the strong brand name they
have. The strong brand name is what makes the company, its products
and services popular. Furthermore a strength of the company is its
ability to make strategic adjustments whenever there is a need for
it. The company makes sure that whenever changes in the industry
happen they have alternative plans towards it. Another strength of
the company is the supply chain system wherein the company keeps
the products in a secure place until it is needed in a certain
branch. Lastly a strength Wal-Marts is its website that is easy to
use, attractive, and informative. Such website encourages the
clients to visit the store.
WeaknessesJust controlling such a huge organisation is a huge
untertaking and in particular managing the employees. Suppliers are
always under pressure with regard to price and their ability to
supply when required. Becuase of the low prices customers often
question and are concerned at the quality of the goods.This is
offset to some extent by the satisfaction guarantees offered.
The main weakness of Wal-Mart is the criticism towards the
company. The criticism affects not only the image of the company
but its standing in the supply chain. Such criticism affects the
relations between the suppliers and the company thus causing issues
in the companys supply chain. Another weakness of Wal-Mart is the
notion that the company is losing its charm. This means that the
company in some way is having problems in their relationships with
clients. Lastly a weakness of Wal-Mart is poor sales in clothing
merchandise. The company does not do well in this kind of product
due to the company not being known as a reseller of such
product.
OpportunitiesExpansion into other countries and forming
partnerships to enter these countries is probably the main
opportunity...employing 'more of the same' strategy. Taking over
companies overseas is also possible. e.g. ASDA in the UKHome
delivery of orders placed through the internet is a big
opportunity. Most stores are on the edge of town and as fuel costs
rise people are less likely to want to travel.Creation of Walmart
convenience stores is a strong possiblity. This overcomes local
objections and increased travel costs.In recessionary
times...people are looking to save money.An opportunity for the
company is to find out more ways to give a distinctive look and
features to their stores and branches. By doing this the company
will have competitive advantage over other firms. An opportunity
for the company is to improve the features of their website. By
doing this it can attract more markets. The company should also
continue to improve its supply chain so that different issues and
problems can be resolved ahead of time. It should device faster
means to deliver supplies to prevent shortages of products in their
branches. Lastly an opportunity for the company is to continue to
reach newer territories where it can offer its products and
services. This newer territories may be in a country that has
recently just improved its economy.Opportunities for Walmart are
vast and wide since they're growing and is financially stable, it
can still forego with its wider global expansion. Given its huge
base of power that enabled them to extract significant price
concessions from its suppliers, the company is a sure winner. Also,
as it intensifies its promotions of its own labels and store brands
that competed directly against well-establish national companies
such as P&G and Kraft, everything is seem to be looking grand
for Walmart in the future.ThreatsLocal competing vendors hate the
possible arrival of Walmart and a lot opposition is likely. Also
competition from local convenience stores is likely to increase as
travel costs to Walmart increase. In Europe the expansion of the
German retailers, Aldi and Lidl, is growing fast. These companies
offer limited stock but are local and are cheap. ALDI is the
Southwest Airlinesof the grocery business, with efficiency being
the name of the game with only 1000 or so stock items against the
normal 20,000 to 30,000 items in Walmart. Although Walmart is huge,
competition from similar companies is also likely.Being successful,
they are open to attack on any ethical stance - low pay and poor
work conditions, supply of goods from 'poor' cheap labour
countries, and environmental issues.
The main threat to the Wal-Mart is the competitors. The
competitors like Tesco and Carre-Four try various tactics to
overcome the standing of the company in their industry. The
competitors may device a way to overcome the company and have a
better standing in the supply chain. The threat to the company
includes the laws in the country they are operating in. Another
threat to the company is the tariffs and taxes that the company has
in different countries, each countries has its own rate of taxes
and tariff that creates additional expenses for the company. Lastly
a threat to the company is the culture of some clients in other
countries they operate in. Some people may not like the new culture
that is brought by Wal-Mart and its expansion into newer markets.
Major Threats however are the pending lawsuits filed by disgruntled
employees who felt abused and improperly treated and compensated.
There are also more experienced competitors who seem to go with
each other just to see Walmart fall. Walmart must be watchful and
vigilant so as to keep their place in the top of the retailing
industry.
WAL-MART PESTLE ANALYSISThe PESTLE Analysis is a strategic
planning tool used by corporations to analyze the various external
forces that would affect corporations operations when entering new
markets. The PESTLE categorizes those elements into six different
forces, which are the political, economical, social, technological,
legal, and environmental forces. PESTLE analysisPoliticalWal-Mart
made sure that they were aware of the political situation of every
country they have operated in and the company has made sure that it
has a reasonable position with regards to political issues.
Wal-Mart is continuously prepared for any problems concerning the
political sector. The political aspect of a PESTLE analysis would
analyze the implications of the new political system and its effect
on the corporate models of an international company. Multinational
corporations are exposed to a tremendous amount of risk when
entering a new country/market; the political forces could
negatively affect its operations, in the case of the Wal-Mart
Corporation, this is especially true. Wal-Mart has become a symbol
of the American culture and it will become a target for any
political faction that opposes the political views of the United
States. This factor could severely limit the companys' growth in
certain region of the world.
EconomicWal-Mart can be said to be economically stable for the
past years. Its economic stature is doing well thats why they try
to improve their products to give the best to their clients. It is
not only the internal economic situation of the company should be
taken note of but also the economy of the country, Wal-Mart checks
first the economic status of the country they are operating in
before making decisions if they will have a branch in that
area.When discussing economic forces in the PESTLE analysis, we
refer to how different states of an economy such as an economic
surge or a depression would influence multinational corporations
and their business within that specific economy. Wal-Mart is always
sensitive towards this aspect, their sales model which depends on
low margins of profit and a high volume of sales, could alter
relatively fast. In an economic surge their selling point of low
prices would be of less importance to customers, on the contrary,
during a time of recession/depression their goal of high volume of
sales would be threatened. As a result of the previously mentioned
points, Wal-Mart should conduct a thorough study before entering an
unbalanced economy.
Social Wal-Mart makes sure that the products they offer will be
accepted by the public. Wal-Mart does not authorize the delivery of
some products they know will cause outbursts or complains from
different groups in the society. Wal-Mart makes sure that they have
a very good relationship with different sector in the society
although some sectors hold a grudge towards them. Wal-Mart also
engages in social activities that tend to develop a better
relationship between them, the clients and the society they are
operating in. This aspect defines the characteristic of the social
forces when analyzing a foreign market and the society in which it
is present in. These social forces can cripple a corporations'
business if they were left unchecked. In regards to Wal-Mart, this
element could prove to be crucial, due to the fact that Wal-Marts
model was tailored to suit the American society and their attitudes
towards retail shopping. That mentality would inevitably clash with
the attitudes of clients in foreign countries fueled by social
differences. As a result, Wal-Mart would have to make changes to
its model in order to adapt to the requirements of other cultures,
this would present a cost that would limit the companys'
growth.
TechnologicalWal-Mart offered new innovations in its
technological aspect and introduced new concepts with regards to
its industry. Wal-Mart makes use of highly advanced cash register
or better performing slot machines. It also makes use of better
security systems. Since technology rapidly changes Wal-Mart makes
sure they are updated to what is happening and they can adjust to
these changes. If other companies use new technologies to provide
services, Wal-Mart has the technology capable of competing with
such technologies. The Technological forces refer to the changes
and innovations in technologies and the extent to which it affects
companies' processes. It is well known that technology changes all
the time and people are always creating better, faster, and more
efficient ways of doing things. Companies that can integrate those
changes the fastest would have an edge over those who cannot.
Wal-Mart has always been a leader in implementing and integrating
new technologies to improve its efficiency. However, when venturing
to other countries, those systems are sometimes unusable. Change
could take a different amount of time to reach different countries,
and companies would have to take that into consideration before
venturing into a new market. That means that Wal-Marts growth would
be limited to the countries that can support those
technologies.
LegalWal-Mart makes sure that it follows the different laws of a
country they engage transaction in. The company doesnt want to risk
their clients welfare and company image by breaking local and
international laws Wal-Mart makes sure that the transactions they
engage in will have a legal basis and will be sanctioned by local
or international legal organizations. The legal factor that could
affect organizations willing to enter foreign markets is the
different laws, and corporations are forced to abide by those laws
should they enter a foreign market. This is a powerful force due to
the various implications it creates, companies could venture into
other countries for the sole purpose of taking advantage of certain
laws in those countries, for example, companies would usually go to
a developing country with a less developed legal systems, and set
operations to avoid more strict laws in their home countries (Labor
laws, environmental laws, safety laws). Wal-Mart has received
criticism that it uses this loophole to keep its prices low.
Environmental Wal-Mart makes sure that the products they sell
are proven to cause minimal problems to the environment. Wal-Mart
puts up certain regulations on what type of product they will sell
in their store. Wal-Mart has also introduced better waste
management strategies that aim to reduce pollutants and create a
cleaner environment for the future. Wal-Mart makes sure that its
waste system is organized to prevent any mistakes from the
personnel. The environment is a major concern for multinational
corporations; this is because large corporations are accused of
destroying the environment and the exhaustion of natural resources
on a regular basis. Wal-Mart has had an environmental issue before;
they sold furniture that was produced from using wood from a
natural reserve. They were heavily criticized and were eventually
pushed into dropping the product line completely. As a result of
that issue, their growth in that field was halted
Porters five forcesPotential EntrantsWal-Mart has been around
for a quite some time and the company is not greatly affected by
the new entrants. The influence of potential entrants to the
company is weak. Any new entrant will have difficulty in gaining
clients not unless they can provide innovative strategies that can
thwart Wal-Mart from its position and get Wal-Marts clients.
Potential entrants: the threat of potential entrants is considered
low due to the following reasons: Discount retail industry is a
highly competitive environment with mostly big players competing
for market shares. Price is mainly the key factor for competition.
Existing companies have established strong and stable supplier
networks. Wal-Mart has a superior logistics and distribution
system, cutting edge technology to support all phases of its
operation, a well-established brand name, a large number of stores
nationwide, and a deep financial resource. Wal-Mart also has cost
advantage over its competitors due to its large purchase volume.
Wal-Mart can deter potential entrants.
Competitive rivalryCompetitive rivalry has a low influence on
Wal-Mart. The company has lower concerns on its competitors since
there are limited competitors in their industry. The competitors
cannot give much problem to the company since it already acquired a
good percentage of the buying public. Industry competition: the
competition among existing firms is high because: This is a mature
industry. There are few but large competitors, who dominate the
majority of the market. Price is the focus of competition, and
firms are forced to cut cost to stay competitive.
SubstitutesSubstitutes give high influence to Wal-Mart and its
different branches since substitutes can make a company lose the
clients it has. The substitutes can be in the form of online or
actual stores. This kind of business is continuously growing and
continuously changing strategies. The company and its different
branches in different locations make sure that the substitutes wont
give them much problem. They do this by proving that the service
they offer and the technologies they use to provide the service are
the best quality and are better than substitutes or any other
company. Substitutes: the threat of substitute is low. Consumers
can buy from small mom-and-pop stores or specialty stores, but
these stores do not offer a wide range of products, nor do they
offer competitive prices. On-line purchase can be a substitute
means for shopping; however, it may not be a good choice for goods
that are consumed daily because shipping costs may lead to higher
final prices, and shipping time can delay the needs fulfillment.
Industry competition: the competition among existing firms is high
because: This is a mature industry. There are few but large
competitors, who dominate the majority of the market. Price is the
focus of competition, and firms are forced to cut cost to stay
competitive.
Bargaining power of buyers and sellersThe bargaining power of
buyers highly influences Wal-Mart. As much as possible the company
maintains reasonable prices for their products and service to
satisfy the buyers. When the clients try to dictate lower prices
the company tries to know whether it is reasonable and if isnt it
has no choice but let the client go. The bargaining power of
sellers highly influences Wal-Mart. The company makes sure that
their suppliers have high bargaining power through helping them
show their importance in the industry. Wal-Mart makes sure that the
price being asked for a material has the same value as the same
materials quality and durability. This will ensure that budgets
will not be wasted. Bargaining power of suppliers: the power of
suppliers is low. In general, most suppliers rely on retailers to
distribute their products to the end consumers; therefore, the role
of retailers in the distribution channels is critical. Wal-Mart not
only carries a wide range of products, but also possesses thousands
of stores in the U.S. and worldwide. This combination places
Wal-Mart in a very strong negotiation position with suppliers and
gives it great flexibility in choosing and working with a wide
range of suppliers and vendors. As stated in the case, Wal-Mart is
both desired and feared by manufacturers. With a fleet of 4,000
trucks, Wal-Mart also has capability to independently operate part
of its transportation logistics without relying solely on outside
vendors. Wal-Mart also carries some of its own Great Value
private-label products tailored to local demand. Bargaining power
of buyers: the power of buyers is considered moderate. Switching
costs of buyers is low. Buyers are price-sensitive. They can be
easily lured to competitors to buy products that are offered at a
lower price. The differentiation in the products and brands among
different discount retail stores in this industry is low. Since
most of the products offered are commodity, buyers usually choose
the store that is closest to their home or their workplace for
convenient shopping. Wal-Mart provides a wide range of products and
services, and offers very low prices. In addition, it has many
stores serving different geographical areas. Hence, it has a large
and loyal customer base.
5. Corporate Level Strategies, international business
strategies,
Types of business-level strategiesa) Cost Leadership Firm
Infrastructure: With cost-effective management information systems,
relatively few managerial layers in order to reduce overhead costs,
and simplified planning practices to reduce planning costs Human
Resource Management: With consistent policies to reduce turn-over
costs, intense and effective training programs to improve worker
efficiency and effectiveness Technology Development: With
easy-to-use manufacturing technologies, and investments in
technologies in order to reduce costs associated with a firm's
manufacturing processes Procurement: With systems and procedures to
find the lowest-cost (with acceptable quality) products to purchase
as raw materials and frequent evaluation processes to monitor
supplier's performance General: With highly efficient systems to
link supplier's products with the firm's production processes, use
of economies of scale to reduce production costs, construction of
efficient-scale production facilities, a delivery schedule that
reduces costs, selection of low-cost transportation carriers, a
small, highly trained sales force, products priced as to generate
significant sales volume, and an efficient and proper product
installations in order to reduce the frequency and severity of
recalls.b) Differentiation Firm Infrastructure: With highly
developed information systems to better understand customer's
purchasing preferences and a company-wide emphasis on the
importance of producing high-quality products. Human Resource
Management: With compensation programs intended to encourage worker
creativity and productivity, superior personnel training, and
somewhat extensive use of subjective rather than objective
performance measures. Technology Development: With strong
capability in basic research and investments in technologies that
will allow the firm to produce highly differential products.
Procurement: With systems and procedures used to find the
highest-quality raw materials and purchase of highest-quality
replacement parts. General: With superior handling of incoming raw
materials so as to minimize damage and improve the quality of the
final product, consistent manufacturing of attractive products,
rapid responses to customer's unique manufacturing specifications,
accurate and responsive order-processing procedures, rapid and
timely product deliveries to customers, extensive granting of
credit buying arrangement for customers, extensive personal
relationships with buyers and suppliers, extensive buyer training
to ensure high-quality product installations, and complete field
stocking of replacement parts.c) Focused Cost Leadershipd) Focused
Differentiatione) Integrated Cost Leadership/DifferentiationTypes
of business-level cooperative strategies Vertical complementary
strategic alliance - Formed between firms that agree to use their
skills and capabilities in different stages of the value chain to
create value for both firms. Outsourcing is one example of this
type of alliance Horizontal complementary strategic alliance -
Formed when partners who agree to combine their resources and
skills to create value in the same stage of the value chain - Focus
is on long-term product development and distribution opportunities.
- The partners may become competitors which requires a great deal
of trust between the partners Competition response strategy - Occur
when firms join forces to respond to a strategic action of another
competitor. - Because they can be difficult to reverse and
expensive to operate, strategic alliances are primarily formed to
respond to strategic rather than tactical actions
Uncertainty-reducing strategy - Are used to hedge against risk and
uncertainty. - These alliances are most noticed in fast-cycle
markets - An alliance may be formed to reduce the uncertainty
associated with developing new product or technology standards.
Competition-reducing strategy - Created to avoid destructive or
excessive competition - Explicit collusion: when firms directly
negotiate production output and pricing agreements in order to
reduce competition (illegal). - Tacit collusion: when firms in an
industry indirectly coordinate their production and pricing
decisions by observing other firm's actions and responses.
Wal-Mart StrategyWal-Mart dominates the American retailing
industry due to number of factors like its business model which is
still a mystery and its effectiveness in not letting the rivals let
know about the weaknesses. Wal-Mart made strategic attempts in the
its formulation to dominate the retail market where it has its
presence, growth by expansion in the US and Internationally, create
widespread name recognition and customer satisfaction in relation
to brand name Wal-Mart and branching into new sectors of
retailing.It is learnt that Wal-Mart strives on three generic
strategies consisting of Focus Strategy, the Differentiation
Strategy and overall cost leadership. Managers strive hard to make
their organizations unique, distinctive and identify key success
factors that will drive the customers to buy their products.Thus,
firm specific resources and capabilities are crucial in explaining
the firm's performance. The Resource Based View (RBV) explains
competitive heterogeneity based on the premise that close
competitors differ in their resources and capabilities in important
and durable ways. The company's capability can be found through its
functionality, reliable performance, like Wal-Mart superior
logistics. (Helfat, 2002) Wal-Mart has firm infrastructure, well
equipped in human resource with management professionals and
technologically too.Any organizations thrive hard to be successful
for which it needs to have better resources and superior
capabilities. Wal-Mart has strong RBV with economically and
financially very strong enough to stand still in the time of
crisis. Pereira states that dominating the retail market is its key
strategy. Wal-Mart operates on low price strategy which is operated
as every day low prices (EDLP) which builds trust among the
customers.(Brunn, 2006)The strategy lies in purchasing the goods at
lower prices and selling the goods to customer at much lower
prices, cutting the price as far as possible and increasing the
profit by increasing the number of sales. This ferociously
increases the competition in the market and Wal-Mart competes with
all its competitors till it is dominant it the market.Wal-Mart is
expanding seriously and rapidly which is also its strategic goal.
Wal-Mart employs over 1.3 associates, owns over 4000 stores out of
which 3000 are in US and serves around 100 million customers
weekly. Wal-Mart has acquired many international stores and merged
with some super stores like ASDA in UK. Wal-Mart far flung network
of retail outlets has ensured that Wal-Mart interacts with and has
impact on virtually every locality within US. (Helfat, 2002) The
expanded strategy has led the hunger of Wal-Mart to many European
Countries. It is learnt that three countries with no Wal-Mart
stores became part of corporation's international presence wherein
the domestic retail chains were taken over by Wal-Mart including
122 Woolco stores in Canada, 21 Wertkauf stores in Germany and 229
ASDA units in United Kingdom. The takeover strategy by Wal-Mart
keeps the company at forefront when entering into the new market
and the number of competitors is also minimized. The strategies
have helped the Wal-Mart to rein in number one position in
international countries making it the largest retailer in the
world.It is seen that Wal-Mart has significantly the Porters five
force model wherein through proper strategic planning and strategic
implementation has led to removal of barrier entry, rivalry from
competitors and pricing norms. In regard to substitutes, Wal-Mart
in order to achieve its aim of customer satisfaction has selling
goods under its own legal brand. Wal-Mart's big box phenomenon has
changed the retailing industry in the United States which is often
considered as discount stores and makes profit through high volume
of purchases and low markup on profits.(Parnell, 2008)Wal-Mart with
its low cost and ever expanding strategy has made a dramatic impact
since 1962 when Sam Walton first started his business. With this
strategy, Wal-Mart has now over 4000 stores and outlets in US and
other countries through acquisition and mergers.Sustainability in
Discount Retailing Wal-MartAccording to Porter, (2002) operational
effectiveness and efficiency are the key elements of success in any
organization. A company can outperform its rivals or competitors in
the market only with superior management and efficient control
creating a difference from the others which eventually attracts
customers. Porter defines operational effectiveness as performance
of similar activities as its rivals but better than them. In a
study, it is stated the Wal-Mart is expert in manipulating
perceptions. It is termed that low price is not the strategy of
Wal-Mart but the advertisement manipulates the consumer perceptions
by making them think that its prices are lower than its
competitors' price using price spin'. Wal-Mart makes the consumer
addicted coming to its stores by convincing them the prices are
lower than in the other stores by selling itself cheaper by
advertising that we have lower prices than anyone else' and placing
a opening price point'. The opening price point' is the lowest
price in the store which is kept at high visibility which makes
consumer believes that the products in this store are really
cheaper. (Race Cowgill, 2005)The SWOT analysis of Wal-Mart reveals
that it is most powerful retail brand, reputation for money, value,
commitment, and provides wide range of products. It is growing at a
brisk pace with expanding its horizon to other parts of world
through acquisition and merger. Wal-Mart has good opportunities in
markets of Europe and China and focuses on acquiring the market
through acquisition of smaller stores and merger with leaders in
the specific markets. Wal-Mart is always under threat to sustain
its top position in market nationally and internationally. Global
leader in the industry leaves the organization vulnerable to many
socioeconomic and political problems of the country.Sustainability
at the top place is the most important job that makes its managers
strives hard to frame the policies and strategy to compete with its
rivals in the market. Slack, Imitation, Substitution and Hold-up
are some of the threats to any organization in retail industry.
However, Wal-Mart with its visionary goal of attaining zero waste
status and reaching 100% renewable energy has planned to launch
number of sustainability initiatives. (GreenBiz, 2008) Imitation
increase profits by increasing the supply. But imitation puts
reputation, relationship at stake. James Hall reports that Wal-Mart
is planning to open convenience stores as Tesco has started and
operating in US called Fresh & Easy Neighborhood Markets.
(James, 2008) Such tactics will create mixed response among the
consumers while degrading the reputation of the leader in market.
Substitution reduces the demand for what a firm uniquely provides
by shifting the demand elsewhere due to changes in technology. The
threats of substitution can be subtle and unexpected like
minimizing expenses through videoconferencing instead of air
flights to long distance meetings with its managers of other
stores, etc. Therefore, substation is an especially effective way
of attacking dominant rivals in the market. Substitution offers
mixed responses after identifying and understanding the threats.
The organization should fight the threat and merging with them,
switching to different options of substitution to be in the market.
Hold-up diverts the value to customers, suppliers or complementors
who have some bargaining leverage which results in tough
negotiations, contractual agreements and vertical
integration.Wal-Mart is having great network with almost over 7800
stores and Sam's Club locations in 16 markets worldwide. It employs
more than 2 million associates and serves more than 100 million
customers every year. According to Fishman (2006) Americans spend
$26 million every hour at Wal-Mart which makes it believable that
Wal-Mart is financially very strong and is capable of combating any
threat from its rivals in the market. Wal-Mart is ever expanding
its boundaries by way of acquisition and mergers. Thus Wal-Mart
with such a vast network of stores and alliances in the forms of
ASDA, Target and many other stores is well protected enough to
sustain its top position in the retail industry.Main customer
marketsThe market of Wal-Mart is different individuals who need a
discount store that will provide them the products they need. This
market is the one that needs an alternative shopping experience.
This market wants a store where every product they need is
available and sold at lower prices. The market segment of the
company is divided into clients who have brand loyalty and price
sensitivity. There are specific products for those clients that are
price sensitive and want low priced products. There are also
products that direct its attention clients who are brand conscious.
The company makes sure that they cover all the segments in the
society they are operating in. The company has specialized prices
for the different market segment, this will ensure that the clients
will have lesser doubts about taking a look at the companys product
and the products that they can afford. The target market of the
company involves almost all sectors of the society. They want to
provide products to all ages and all gender. The company as much as
possible aims to reach all walks of life. This target market is a
larger source of income. The company has different marketing
strategies that can cater to the taste and appeal of such markets.
The company makes sure that its stores and branches are located in
the most profitable places where clients can easily see the store
and they can be encouraged to visit the store and buy products. The
company also makes sure that competition in the location they want
to put up the branch will not be too heavy.
CORPORATE LEVEL STRATEGY OF WALMARTWalmart uses a combination
strategy ofoverall cost leadershipand differentiation. They use
differentiation by having a wider variety of products than their
competitors. Walmart's transportation, logistics, and information
systems lower their costs. They also lower costs by having
no-frills service and by having economies of scale.Walmart's
successfuloverall cost leadership/differentiation strategy leads to
high entry barriers for competitors. It alsomakes it hardfor
substitute products to enter the market. Walmart also has
bargaining power with their suppliers. They changed their
competitivechallenge from retailing to transportation logistics and
communication industries to play to their strengths (Dess, Lumpkin,
Eisner, McNamara, 2012). Walmart has avoided the pitfalls of the
overall cost leadership/differentiation strategy by not getting
"stuck in the middle" and properly calculating future revenues and
expenses
The Internet has helped Walmart grow their businessby lowering
transaction costs. Walmart allows customers to order products
online which reduces sales force expenses. Customers can have their
own account page on the Walmart website to look at prior orders and
track current orders. Their Internet site allows you to ask
questions and give feedback.Walmart differentiates it's website by
providing recommendations of other products to buy when you make a
purchase.
Walmart has many overall cost leadership value-chain activities.
They have fewer management layers than their competitors which
reduces overhead costs.Walmarthas effective inbound logisticsby
using just-in-time inventory. They have cut costs from outbound
logistics by creating better fuel efficiency in their trucks,
getting more pallets on a load, and decreasing empty miles driven
by their trucks. Walmart also reduces costs by buying in large
blocks.
Walmart has many differentiation value-chain activities. Walmart
hasflexibility and speed when transferring their products from
their warehouses. Their technology provides an accurate ordering
process.While Walmart doesn't offer many sales,their "everyday low
pricing"strategy has been successful. Their slogan "save money,
live better"accurately represents their image.Walmart and Corporate
Level Strategies5.A. Three international corporate-level strategies
Multi-domestic - Strategy and operating decisions are decentralized
to strategic business units (SBU) in each country - Products and
services are tailored to local markets - Business units in one
country are independent of each other - Assumes markets differ by
country or regions - Focus on competition in each market -
Prominent strategy among European firms due to broad variety of
cultures and markets in Europe Global - Products are standardized
across national markets - Decisions regarding business-level
strategies are centralized in the home office - Strategic business
units (SBU) are assumed to be interdependent - Emphasizes economies
of scale - Often lacks responsiveness to local markets - Requires
resource sharing and coordination across borders (hard to manage)
Transnational - Seeks to achieve both global efficiency and local
responsiveness - Difficult to achieve because of simultaneous
requirements: Strong central control and coordination to achieve
efficiency - Decentralization to achieve local market
responsiveness - Must pursue organizational learning to achieve
competitive advantageCorporate-level Strategy
The major reason behind the success of Walmart lies in the fact
that the company believes and concentrates on the strategy of
single business, which means more than 95% of its revenue comes 6
|!P a g efrom their grocery business. Over 30 years, the strategy
of single business has been contributing greatly to the success of
Walmart, they have never believed in the concept of diversification
for the sustenance of its growth and also its advantages at the
competitive level (Market entry strategies of Walmart in the
international arena, 2013).
International-level strategy
Walmart has been able to successfully enter into the global
market because of the use of multinational business strategy. This
strategy involves that customers of different countries are treated
differently and hence productivity and profitability are high. It
is imperative for Walmart to cater every region's differences in
product preferences; thus, they work under the "Different Stores
for Different Folks" philosophy (Walmart: An Analysis, 2008).
6. Business policies, Corporate social responsibility,Business
policiesa. our ad match guaranteeb. Walmart coupon policyc. global
anti-corruption policyd, government relations policye. photo video
use policyf. Walmart privacy policyg. return policyh. walmarts
social media guidelinesI ethics and integrity
a. Our Ad Match GuaranteeWere committed to providing low prices
every day. On everything. So if you find a lower advertised price
on an identical product, tell us and well match it. Right at the
register. We gladly match the price in the following types of ads:*
Buy one, get one free ads with a specified price Example: Buy one
for $2.49, get one free (BOGO) Competitors' ads that feature a
specific item for a specified price Preferred shopping card prices
for specific items that are in a printed ad For fresh produce and
meat items when the price is offered in the same unit type (lb. for
lb.; each for each)*The following are guidelines and limitations:
We will match any local competitor's advertised price. We do not
require customers to have the ad with them to honor a competitor's
ad. Items purchased must be identical to the ad (size, quantity,
brand, flavor, color, etc.)We do not match the price in the
following types of competitor ads: Items that require a separate
purchase to get the ad price example: "Buy [item A] to get [item B]
for $C" Items with no actual price that require a purchase to get
free product example: "Buy both [items A & B] to get [item C]
for free" Items that require a purchase to get a competitors' gift
card example: "Buy [item A] to get a $B gift card Buy one, get one
free (BOGO) ads with no actual price given Going out of business or
closeout prices Percentage off example: "All mascara, 40% off"
Competitors' private label price promotionsWe do not honor: Ads
when the actual price for items cannot be determined Internet
pricing Misprinted ad prices of other retailers "Going out of
business" sales or "closeout" pricesb. Walmart Coupon PolicyWe
gladly accept the following types of coupons* Print-at-home
internet coupons Must be legible Must have "Manufacturer Coupon"
printed on them Must have a valid remit address for the
manufacturer Must have a valid expiration date Must have a
scannable bar code Buy one, get one free (BOGO) coupons with a
specified price Are acceptable in black and white or color May not
be duplicated Manufacturers' coupons For dollar/cents off For free
items (except those printed off the Internet) Buy one, get one free
(BOGO) coupons Must have "Manufacturer Coupon" printed on them Must
have a valid remit address for the manufacturer Must have a valid
expiration date Must have a scannable bar code May not be
duplicated Competitors' coupons A specific item for a specified
price, for example, $2.99 Buy one, get one free (BOGO) coupons for
items with a specified price Have a valid expiration date Are
acceptable in black and white Soft drink container caps Checkout
coupons ("Catalinas") Printed at our competitors' registers for
dollar/cents off on a specific item Must have "Manufacturer Coupon"
with specific item requirements printed on them Must have a valid
remit address for the manufacturer Must have a valid expiration
date Must have a scannable bar code Are acceptable in black and
white May not be duplicatedWe do not accept the following coupons:
Checkout coupons Dollars/cents off the entire basket purchase
Percentage off the entire basket purchase Print-at-home Internet
coupons that require no purchase Competitors' coupons Dollars/cents
off at a specific retailer Percentage off Buy one, get one free
(BOGO) coupons without a specified price Double- or triple-value
coupons*The following are guidelines and limitations: We only
accepts coupons for merchandise that we sell. Coupons must be
presented at the time of purchase. Only one coupon per item. Item
purchased must be identical to the coupon (size, quantity, brand,
flavor, color, etc). There is no limit on the number of coupons per
transaction. Coupons must have an expiration date and be redeemed
prior to expiration. If coupon value exceeds the price of the item,
the excess may be given to the customer as cash or applied toward
the basket purchase. SNAP items purchased in a SNAP transaction are
ineligible for cash back. WIC items purchased in a WIC transaction
are applied to the basket purchase and may not be eligible for cash
back. Refer to state-specific WIC guidelines. Great Value,
Marketside, Equate, Parents Choice, and World Table coupons have no
cash value and are ineligible for cash back or application to the
basket purchase. The system will prompt for supervisor verification
for: 40 coupons per transaction. A coupon of $20 or greater on one
item. $50 or more in coupons in one transaction.c. Global
Anti-Corruption Policy (CR-02)Wal-Mart Stores, Inc. and its
subsidiaries and affiliates worldwide (collectively "Walmart" or
the "Company"), are committed to maintaining the highest possible
ethical standards and complying with all applicable laws. In all of
its operations, Walmart seeks to avoid even the appearance of
impropriety with respect to the actions of any of its officers,
directors, associates, employees, agents or representatives. This
policy prohibits corrupt payments in all circumstances, whether in
dealings with government officials or individuals in the private
sector.General DirectivesIt is the policy of Walmart to comply with
all relevant Anti-Corruption laws including, but not limited to,
the US Foreign Corrupt Practices Act ("FCPA") and the UK Bribery
Act.Accordingly, Walmart prohibits anyone acting on behalf of the
Company, directly or indirectly, from making or receiving improper
payments.Improper payments means receiving or paying bribes or
giving, offering, or promising to give money or anything else of
value to any person, including any Government Official, in order to
improperly influence any act or decision of a person, or to
otherwise gain an improper benefit for the Company.A Government
Official may include, but is not limited to, any officer or
employee of a foreign government, a public international
organization, a member of a political party, a candidate for
foreign political office, any foreign government department or
agency thereof, or any official or employee of a state-owned
business enterprise.The use of Walmart funds or assets for any
illegal, improper, or unethical purpose is strictly
prohibited.Compliance with this Global Anti-Corruption Policy (the
Policy) is required of all associates and third parties that are
engaged to interact or may interact with government officials on
the Companys behalf. All associates are responsible for ensuring
that third parties with whom they interact fully understand and
follow the policy and associated procedures in their activities
related to Walmart business.Violations Any associate or third party
who violates this policy in connection with Walmart business will
be subject to disciplinary measures, up to and including
termination in the case of an associate, or termination of business
relations in the case of a third party and, where appropriate,
referral of the matter to relevant law enforcement
authorities.Global Implementation of Anti-Corruption Policy To
effectively implement this policy, Walmart shall maintain an
effective risk-based Global Anti-Corruption Program (the "Program")
designed to prevent, detect, and remediate bribery and
recordkeeping violations. As part of the program, Walmart shall
adopt operating procedures specifically targeted to the corruption
risks that exist for all of its operations, worldwide. Management
in each affected area shall be responsible for ensuring that
adequate resources are devoted to maintaining effective compliance
programs. A senior executive at Wal-Mart Stores, Inc., shall be
given overall responsibility for the Program, and shall report
regularly to the Audit Committee of the Board of Directors of
Wal-Mart Stores, Inc., which shall exercise reasonable oversight as
to the implementation and effectiveness of the Program.The
procedures and governance used to implement this policy, shall
include, at a minimum: Effective controls on the disbursement of
funds and other assets to ensure that disbursements are not made
for improper purposes; Measures to ensure that books and records
accurately reflect the disposition of assets; Clearly articulated
standards of behavior as included in Walmart's Statement of Ethics,
which shall be well publicized to all of Walmart's operations,
worldwide; Clearly defined roles, responsibilities, and reporting
lines for day-to-day management and implementation of the
compliance procedures; Effective training of executives, associates
and, where appropriate, third parties regarding relevant
anti-corruption standards and procedures; Testing by Internal Audit
or a third party for compliance with the anti-corruption
procedures, including review of expenditures for operations that
interact with government officials; Corruption risk assessments
conducted annually; Conducting due diligence of third parties
engaged to interact with government officials on behalf of the
Company; Effectively publicized means to report or seek guidance on
actual or potential anti-corruption issues, as well as procedures
for responding to such reports or requests; Regular review and, if
necessary, revisions or updates to this policy and to the related
procedures where appropriate, including in response to legal,
regulatory, or industry changes or violations of the
Anti-Corruption Policy; Appropriate incentives and punishments for
associates, executives and third parties for adherence to or
violations of, respectively, the relevant policy and related
procedures.
ReportingEvery associate or third party who has information that
this policy or related procedures may have been violated, or
believes he or she is being asked to pay a bribe or receive a
bribe, or otherwise act in contravention of this policy shall
immediately report the event, as provided by Walmart's Statement of
Ethics.Reports shall be made, and may be made anonymously to any
officer (Vice President or above) of the Company, the Global Ethics
Office, the International Global Ethics Helpline, or the
International Anti-Corruption Compliance Manager/Director. Reports
may also be made to the Local Ethics Helpline, the legal
department, the Compliance and Ethics Office or the Market
Anti-Corruption Compliance Manager/Director. If anyone receives a
report through the Open Door process he or she shall promptly
forward the report to one of the contacts stated in this paragraph.
Anyone who receives a report through any of the channels stated in
this paragraph shall immediately report to the Global Ethics
Helpline.Anyone who reports a suspected violation of this policy
will not be subject to disciplinary action or retaliation for the
act of making the report. However, anyone who reports a suspected
violation may be subject to disciplinary action to the extent he or
she violated any Walmart policy or procedure. D, Government
Relations Policy This policy applies to all associates who work for
Wal-Mart Stores, Inc., or one of its subsidiary companies, in the
United States ("Walmart"). Policy Walmarts Government Relations
Departments (US Government Relations, Public Affairs and Government
Relations) coordinate company interactions with elected officials
and legislative and regulatory bodies at the federal, state and
local level. To help ensure consistent management of these
relationships, all conversations and engagement with elected
officials or government agencies should be done in coordination
with your Government Relations contact. Associates wishing to
represent Walmarts corporate position on public policy or political
matters should seek guidance from Government Relations before
expressing such views. In addition, all such interactions with
public officials, including their support staff, should be reported
to Government Relations, as certain contact can constitute lobbying
which is reportable. Government Relations, partnership with
Corporate Affairs, coordinates the activities and administration of
the Wal-Mart Stores, Inc., Political Action Committee for
Responsible Government (WAL-PAC). WAL-PAC is the primary entity
authorized to make political contributions in support of our
business. Corporate funds shall not be provided to political
candidates, entities or organizations without the express knowledge
and consent of Government Relations. If you are approached by a
political candidate or organization in your store or club, please
call the Home Office Government Relations at 479-277-0934. Please
refer any other questions in the area to Government Relations at
the number listed above. With respect to fundraising, the following
rules shall apply in addition to all applicable laws: Officers of
Walmart may distribute political literature or engage in political
solicitation, as approved by an Executive Vice President.
Associates assigned to the Corporate Affairs Department may engage
in political solicitation or political distribution, as approved by
the Executive Vice President of Corporate Affairs. e. Photo and
Video Use PolicyAll photos and videos in the Media Library are made
available to accredited news organizations. Walmart grants its
permission for use of these items for the sole purpose of
accompanying related news content in print, broadcast and online
channels by professional news organizations. Any other use without
the written permission of Walmart is prohibited. Content may be
attributed "Courtesy of Walmart" where news organizations require
attribution.Content posted on Walmart's social media channels,
including but not limited to YouTube, Facebook, Flickr and Twitter,
that is not posted in the Media Library, is available for use
without objection from Walmart for the purposes of complementing
news coverage. However, Walmart does not represent or assure any
rights of publicity, copyright or other rights associated with
these images.f. Walmart Privacy PolicyWalmart Privacy Policy -
Highlights Scope: This Policy applies to customer information we
collect in the United States and Puerto Rico at Walmart retail
stores ("stores") and through our websites (for purposes of this
Policy, "websites" includes our mobile applications).Walmart has a
specific Notice of Privacy Practices for its personal information
practices relating to our Health and Wellness operations (Pharmacy
and Vision Center) in our retail stores. This Notice is available
at each Pharmacy and Vision Center.
Information We Collect: We collect your information from the
following sources: Information you give us, such as during
transactions, customer service operations, surveys, and website
registrations, Information from other sources, such as companies
that help us to update our records, and Information automatically
collected when you visit or use our websites, such as via cookies
and device information, and in stores, such as via video
cameras.How We Use and/or Disclose Your Information: Walmart does
not sell or rent your personal information. Walmart uses your
information to provide products and services and to support core
business functions. These uses include order or service
fulfillment, internal business processes, marketing,
authentication, loss and fraud prevention, public safety and legal
functions. We may combine all the information we collect. We may
disclose your information within our corporate family of companies.
We may disclose your personal information to third parties under
the following limited circumstances: with service providers or
suppliers that help with our business operations or joint products.
with your consent. when necessary to protect the safety, property,
or other rights of Walmart, customers, or associates, or when
otherwise required by law.Your Choices: We want to communicate with
you in ways you want to hear from us. Examples include email
newsletters, special offers, and new product announcements. We use
the following standards for marketing communications: We will not
contact you via phone or text message without your express consent
(opt-in). We will not disclose your personal information to third
parties for marketing purposes without your express consent
(opt-in). We use an opt-out standard for all other communications.
This means we will conduct the activity unless you tell us not to.
We participate in interest-based advertising. This means that you
may see advertising on our website tailored to how you browse or
shop, or you may see advertising for Walmart on other websites
based on your browsing behavior across websites. Learn more about
such advertising, including how to opt out. You can provide us your
marketing preferences by visiting the Privacy Preference Center.
The Preference Center allows you to update or change your
preferences for marketing materials at any time. You can also
contact us via the Contact Us section below.Mobile Application
Privacy: In addition to the information above, the following
applies to our mobile applications: Our mobile applications collect
certain information automatically, such as the type of mobile
device you use, the temporary or persistent unique device
identifiers (sometimes called UDID), and information about the way
you use the applications. The mobile applications also collect
certain information you voluntarily provide, such as product
information when you scan a bar code, and transactional
information, such as when you make a purchase or respond to an
offer. Our mobile applications collect precise information about
the location of your device, such as when you search for a store.
You must first provide permission through your device before the
application obtains such location information from technologies
like GPS, Wi-Fi, or cell tower proximity (or a combination of these
technologies). The Mobile Application section below addresses your
choices with respect to our applications collection and use of your
precise location information. Service providers may collect
device-specific information, such as a unique device identifier,
when you use our website or one of our mobile applications. This
information will not be associated in any way with your account at
Walmart or any personal information that identifies who you are.How
to Contact Us: Contact us through our web form -- for privacy or
Walmart Privacy Policy feedback/questions, for store experience,
marketing preferences, product questions and general
feedback/questions.Important Information: We recognize the
importance of privacy and believe it is a matter of trust. Read our
entire privacy policy. We are committed to providing you a fair and
timely response to any privacy concern or questions you bring to
us. See Walmart's Notices and Privacy & Online Safety Tips for
general tips and resources.Privacy Policy - Full Policy Walmart
recognizes the importance of our customers' privacy. We believe
that privacy is more than an issue of compliance it is one of
trust. We strive to manage your personal information based on our
basic belief of respect for the individual. This Policy describes:
How and why we collect your personal information. How your
information is used and protected. When and with whom we share your
information. The choices you can make about how we collect, use,
and share your information.Notice and Scope of Our Privacy
Practices Our goal is to provide clear, prominent, and easily
accessible information about our privacy practices. This Policy
applies to customer information we collect in the United States and
Puerto Rico at Walmart retail stores ("stores") and through our
websites (for purposes of this Policy, "websites" includes our
mobile applications). Walmart has a specific Notice of Privacy
Practices for its personal information practices relating to our
Health and Wellness operations (Pharmacy and Vision Center) in our
retail stores. This notice is available at each Pharmacy and Vision
Center.
Our Pledge of Accountability Walmart expects our associates and
business partners to manage your personal information properly and
maintain your trust. We have designated associates who are
accountable for compliance with this Privacy Policy. Information We
Collect We collect personal information about you to deliver the
products and services you request and to help improve your shopping
experience. We strive to limit the amount of personal information
collected to support the intended purpose of the collection.
Information You Give Us
We collect personal information from you in a variety of ways
when you interact with Walmart, both in stores and through our
websites. Some examples are when you: Create an account on one of
our websites; Make an online or in-store purchase from us; Use a
gift registry or create a mobile shopping list; Conduct a
transaction where we collect information, including when required
by law (such as hunting and fishing licenses); Request customer
service or contact us; Submit a Walmart related story, testimonial,
rating or review, or other user-generated content that may be
posted on the site; Participate in a contest, sweepstake,
promotion, or survey; or Otherwise submit personal information to
us along with any related content of the communication.Personal
information is information that identifies you or is reasonably
linked to you. The personal information we collect may include
contact and payment information like your name, email and physical
addresses, phone numbers, and credit and debit card information.
When you ask us to ship an order, we may collect information you
provide us such as the name, address, and phone number of
recipients. For certain transactions, we may be required to collect
information to comply with legal requirements. Information from
Other Sources We may receive personal information about you from
other sources as well. Examples of these sources are entities that
can help us correct or supplement our records, improve the quality
or personalization of our service to you, and help prevent or
detect fraud. In addition, we may collect information from consumer
reporting agencies or other service providers if you obtain certain
financial products. Automated Information Collection We receive and
store certain types of information when you interact with our
websites, emails, and online advertising. Our purpose is to allow
the websites to work correctly, to evaluate use of the website, and
to support website analytics and marketing campaigns. Some examples
include: We may collect technical information such as your internet
protocol address, your device operating system and browser type,
the address of a referring website, if any, and the path you take
through our websites. We use "cookies" to recognize you as you use
or return to our sites. This is done so that we can provide a
continuous and more personalized shopping experience for you. A
cookie is a small text file that a website or email may save to
your browser and store on your hard drive. We may also use web
beacons. Beacons allow us to know if a certain page was visited, an
email was opened, or if ad banners on our website and other sites
were effective.We operate cameras in stores for security and
operational purposes, such as to measure traffic patterns. Except
for security purposes, we do not use these cameras to identify you
personally. How We Use Your Information Walmart uses your
information to offer and provide our products and services and to
support our core business functions. These include order or service
fulfillment, internal business processes, marketing,
authentication, loss and fraud prevention, public safety and legal
functions. Some examples include: To fulfill your requests for
products and services and communicate with you about those
requests; To register and service your account; To administer
surveys, sweepstakes, contests, and promotions; To provide customer
service and alert you to product information, including recalls; To
help us improve and customize our service offerings, websites, and
advertising; To send you information about our products, services,
and promotions; and To protect the security or integrity of our
websites and our business.To accomplish these purposes, we may
combine personal and non-personal information we collect with
offline information, including information from third parties. We
may transfer or disclose your information within our corporate
family of companies for these purposes. How We Disclose Your
Information Outside Walmart Walmart does not sell or rent your
personal information to third parties. We only disclose your
personal information with your prior consent or under the following
limited circumstances. Service Providers We may disclose or
otherwise make available personal information about you to service
providers that help with our business operations. Examples are
shipping vendors, billing and refund vendors, payment card
processors, and companies that help us improve our product and
service offerings and our websites. Your personal information may
be stored and processed by our service providers in the United
States or other locations where the service providers or Walmart
maintain facilities. We require our service providers to keep your
information secure. In addition, our service providers may not use
or disclose personal information for any purpose other than
providing the services on our behalf. Legal Requirements and
Protection of Our Company and Others We may disclose your
information in other special circumstances. These include
situations when the sharing is necessary to protect the safety,
property, or other rights of Walmart, our customers, our
associates, or any other person, or where otherwise required by
law. Examples include protecting the health or safety of customers,
or addressing crimes committed on Walmart property. Data from
in-store security cameras may also be provided to law enforcement
upon written request. Walmart may provide your personal information
in response to a search warrant or other legally valid inquiry or
order, or to an investigative body in the case of a breach of an
agreement or contravention of law, or as otherwise required by
applicable law. Marketing Purposes From time to time with your
consent, we may disclose information with carefully selected
companies who may offer you products and services of interest. You
may opt in to this sharing under the "Your Choices" section below.
Business Transfers
We may transfer any information we have about you in connection
with a merger or sale (including transfers made as part of
insolvency or bankruptcy proceedings) involving all or part of
Walmart or as part of a corporate reorganization or stock sale or
other change in corporate control. Your Choices Data Collection,
Use, or Disclosure Walmart collects, uses, or discloses your
personal information consistent with this policy. The method of
obtaining consent is appropriate for the type of personal
information being collected, used, or disclosed. For example, we
will obtain your express consent (verbal, written, or electronic
agreement) to collect, use, or disclose personal health information
in accordance with law. In other situations, we consider consent to
be implied, such as to use your email for marketing purposes,
unless you opt out of these communications such as by
unsubscribing. Marketing Preferences We want to communicate with
you in ways you want to hear from us. Examples are newsletters,
special offers, and new product announcements. We use the following
standards for marketing communications: We use an opt-in standard
for phone and text messages. We also use an opt-in standard for
sharing personal information with third parties for marketing
purposes. Opt-in means we will only conduct the activity with your
express consent. We use an opt-out standard for email or for other
communications like mail. Opt-out means we consider your consent is
implied, but will stop the activity on your request.You can provide
us with your marketing preferences by visiting the Privacy
Preference Center. The Preference Center allows you to update or
change your preferences about receiving marketing materials at any
time. Or you may contact the Privacy Office as described in the
Contact Us section below. If you contact us by email or mail,
please be sure to include your full name, the types of
communications you would like to receive or not receive, and your
related contact information. For instance, if you would like to
opt-out of mail, include your mailing address. Please allow
sufficient time for your preferences to be processed. It may take
up to 10 days to process your requests related to email and 4-6
weeks for other requests. Please be aware that, even if you have
opted out of receiving marketing communications from us, we may
still contact you for transactional purposes. Some examples are
contacts for customer service, product information, service or
reminder notices, or recalls. We may also need to contact you with
questions or information regarding your order, such as regarding
order status, shipment, or refunds. Credit Offerings The above
marketing preferences do not apply to our credit card offerings
since these are provided through our financial institution
partner(s). However, you can choose to stop receiving prescreened
offers of credit from all companies, including our prescreened
offers, by calling 1-888-567-8688 or by going to
www.optoutprescreen.com. Online Operations and Advertising You may
exercise choices related to our online operations and advertising.
For instance, you can choose to browse our websites without
accepting cookies Please know that cookies allow us to recognize
you from page to page, and they support your transactions with us.
Without cookies enabled, you will still be able to browse our
websites, but will not be able to complete a purchase or take
advantage of certain website features. To learn more about cookies,
including how to refuse cookies on your device, follow these links:
Microsoft Internet Explorer Mozilla Firefox All About Cookies Adobe
Flash Cookies SafariYou may also opt-out of certain online
advertising called interest-based advertising. Interest-based ads
are ads that are served to you based on your browsing behavior. The
goal is to show you ads more tailored to your interests. We may use
how you browse and shop in order to show you advertisements on our
website that are more relevant to your interests. As an example, if
you browse for electronics with us or other sites, we may show you
ads for electronics as you browse our website. Advertisements may
relate to Walmart or our advertising partners. We do not disclose
personal data about you with advertising partners to place an ad
for them. We only retain data related to the ads for legitimate
business purposes. In addition, we belong to ad networks that may
use your browsing history across participating websites to show you
interest-based advertisements on those websites. You may see ads
for Walmart on participating websites based on how you browse our
website and those sites. We do not allow the network provider to
provide your browsing behavior on our website to other websites.
Learn more about interest-based advertising, including how to opt
out. You may opt-out of either interest-based advertising on our
website, or interest-based advertising on other sites, as described
above. Other websites you visit may offer their own opt-out methods
as well. If you do opt-out of interest-based advertisements, you
may still see advertisements on websites you visit, just not ads
based on your browsing behavior. How to Access and Update Your
Information Walmart takes reasonable steps to keep your personal
information accurate and complete. You can access or update your
personal information, including contact or account information, in
the following ways: If you have created an account on one of our
websites, log into your account. Once you do, you will be able to
enter and update your own contact information and payment
information, as well as contact information for recipients you have
designated. Contact us at the email or postal address listed in the
"Contact Us" section at the bottom of this Policy. Please include
your current contact information, the information you are
interested in accessing, and your requested changes. We will
provide you the personal information requested if reasonably
available, unless it infringes on the privacy of other individuals
and subject to reasonable limitations provided by law and internal
procedures. Otherwise we will describe the types of information we
typically collect. We will provide access and make changes you
request, or will provide an explanation of what actions we will be
able to take with regard to the request. If you need help accessing
your information related to a service provided by a third party, we
will assist you by referring you to the third party. Please contact
us via the "Contact Us" section below. If you need assistance
accessing records related to your Vision Center, Pharmacy, or
financial services information, please visit the section below
related to "Privacy Protections for Specific Types of
Information."How We Secure Your Information Securing your
information is a company priority. Whether you are shopping on our
websites or in our stores, we use reasonable security measures to
help protect the confidentiality of personal information. Online
Protections Your account information is protected by the password
you use to access your online account. Please keep this password
confidential. We also use a technology called Secure Sockets Layer
(SSL). If your browser is capable of SSL (and most are), your
account information will be protected during transport across the
Internet. You can see a representation of this when you enter a
secure portion of our online website (not including our mobile
applications), which is any page containing any of