Presentation3

Created by: Pulkit Subrotho Mukesh Pankaj Jayesh

ContentsContents• IntroductionIntroduction• Wal- Mart An Wal- Mart An

OverviewOverview• Company InformationCompany Information• Vision statementVision statement• Mission statementMission statement• Culture of Wal-martCulture of Wal-mart• Division of Wal-martDivision of Wal-mart• Procurement CentersProcurement Centers• Walmart InternationalWalmart International

• Global CompetitorsGlobal Competitors• Customer BaseCustomer Base• Why India ???Why India ???• The Bharti - Wal-Mart The Bharti - Wal-Mart

Retail Joint VentureRetail Joint Venture• Benefits to Indian Benefits to Indian

Govt. and PeopleGovt. and People• Indian CompetitorsIndian Competitors• SourcesSources

IntroductionIntroduction

• Founder : Sam Walton Founder : Sam Walton • Origin: U.S.Origin: U.S.• When started : When started : 1962 1962 • Business Title: World's Biggest Business Title: World's Biggest

Retailer Retailer • Slogan: “Slogan: “Always Low Price Always Low Price

AlwaysAlways”” ““Save Money, Live Save Money, Live

Better”Better”• Web site:Web site: www.walmart.comwww.walmart.com

Wal-Mart Wal-Mart An OverviewAn Overview

• In 1945 Sam Walton opened the first In 1945 Sam Walton opened the first franchise in U.S. by the name franchise in U.S. by the name Walton.Walton.

• These were small chains that were very These were small chains that were very successful.successful.

• In November of 1962 Wal-Mart was opened.In November of 1962 Wal-Mart was opened.• Wasn’t until mid 1970’s that Wal-Mart began Wasn’t until mid 1970’s that Wal-Mart began

to grow.to grow.• 1972 –listed on NYSE1972 –listed on NYSE• 2003 Wal-Mart topped Fortune 500 and voted 2003 Wal-Mart topped Fortune 500 and voted

most admired company in U.S.most admired company in U.S.

Company InformationCompany Information

• Employs 1.5 million peopleEmploys 1.5 million people• World’s Largest RetailerWorld’s Largest Retailer• Made 256.3 billion last yearMade 256.3 billion last year• Over 4000 stores worldwideOver 4000 stores worldwide

Vision StatementVision Statement

““Our vision is to provide good Our vision is to provide good quality and services to our quality and services to our customers while remaining customers while remaining the market leader and the market leader and striving daily to be the most striving daily to be the most admired company”. admired company”.

Mission StatementMission Statement

Culture of Culture of Wal-MartWal-Mart

The culture consists of The culture consists of •Quality product at low prices Quality product at low prices

“everyday”“everyday”•Respect for the individualRespect for the individual•Service to our customersService to our customers•Strive for excellenceStrive for excellence

Divisions of Walmart…Divisions of Walmart…

• Neighborhood Markets Neighborhood Markets (groceries)(groceries)

• Sam’s Club (membership)Sam’s Club (membership)• Discount stores (fmcg & Discount stores (fmcg &

apparels)apparels)• Walmart super centers Walmart super centers

(groceries)(groceries)

Procurement CenterProcurement Center

• Based in Shenzhen, ChinaBased in Shenzhen, China• Third busiest port in the worldThird busiest port in the world• Employs several hundred Employs several hundred • 80% of Wal-Mart’s 6000 global 80% of Wal-Mart’s 6000 global

suppliers are located in Chinasuppliers are located in China• Wal-Mart & China are a joint Wal-Mart & China are a joint

ventureventure

Wal-Mart International….Wal-Mart International….

DivisionDivisionss

DiscounDiscount storest stores

supercesupercentersnters

Sam’s Sam’s club club

NeighbNeighbour-our-hood hood

marketmarketss

InternaInternational tional TotalsTotals

942942 238238 7171 3737

Global CompetitorsGlobal Competitors

• Target Target

• CostcoCostco

• WalgreenWalgreen

• K MartK Mart

• SearsSears

Consumer Consumer BaseBase

Each week, approximately 100 Each week, approximately 100 million customers, or one-third of million customers, or one-third of the US population, visits Wal-Mart's the US population, visits Wal-Mart's US stores.Wal-Mart customers US stores.Wal-Mart customers place low prices as the most place low prices as the most important reason for shopping at important reason for shopping at Wal-Mart, reflecting the "Low Wal-Mart, reflecting the "Low prices, always" prices, always"

Winning Strategy of Winning Strategy of Wal-MartWal-Mart

Wal-Mart’s only winning Wal-Mart’s only winning strategy in the market is strategy in the market is based on based on

“ “Selling Branded Products Selling Branded Products at Low Price with Good at Low Price with Good Service to it’s Customers”Service to it’s Customers”

Why India ???Why India ???

India is the second fastest growing economy in the India is the second fastest growing economy in the world.world.

One of the youngest countryOne of the youngest country Younger population growing faster.Younger population growing faster. Cultural habit changing (acquiring western look)Cultural habit changing (acquiring western look) Changing attitude of peopleChanging attitude of people Increasing awareness and spending on grooming Increasing awareness and spending on grooming

and lifestyle and lifestyle LiberalizationLiberalization One stop shopping, speed and efficiency of One stop shopping, speed and efficiency of

purchase.purchase. Guilt free spending Guilt free spending Saving not very high prioritySaving not very high priority

The Bharti - Wal-Mart The Bharti - Wal-Mart Retail Joint VentureRetail Joint Venture

• On November 27, 2006, Wal-Mart Stores, Inc On November 27, 2006, Wal-Mart Stores, Inc (Wal-Mart), the world's largest retailer, and (Wal-Mart), the world's largest retailer, and Bharti Enterprises Ltd. (Bharti), a leading Bharti Enterprises Ltd. (Bharti), a leading business group in India, signed a business group in India, signed a Memorandum Memorandum of Understanding (MoU)of Understanding (MoU) to explore business to explore business opportunities in the Indian retail industry. This opportunities in the Indian retail industry. This joint venture marked the entry of Wal-Mart into joint venture marked the entry of Wal-Mart into the Indian retailing industry.the Indian retailing industry.

• The retail shops will be owned by Bharti The retail shops will be owned by Bharti Enterprises under the Wal-Mart franchise. Enterprises under the Wal-Mart franchise. The idea is to give Indians the “The idea is to give Indians the “lowest lowest price everyday."price everyday."

Contd..Contd..

• According to Sunil B. Mittal (Mittal), According to Sunil B. Mittal (Mittal), chairman and managing director, Bharti, chairman and managing director, Bharti,

"This joint venture is a winning "This joint venture is a winning combination. Wal-Mart's logistics skill combination. Wal-Mart's logistics skill and Bharti's execution capability will and Bharti's execution capability will create a potent force in the Indian create a potent force in the Indian market." market."

Indian CompetitorsIndian Competitors

• Pantaloons Big Pantaloons Big Bazaar Bazaar

• Reliance Fresh Reliance Fresh • Food World Food World • Shubiksha Shubiksha • Margin Free Margin Free

Market Market

SourcesSources

• www.walmart.comwww.walmart.com• www.bharti.comwww.bharti.com• www.walmartstores.comwww.walmartstores.com• www.walmartfacts.comwww.walmartfacts.com• www.walmartfoundation.comwww.walmartfoundation.com