Group-1

WALMART USA to THAILAND

B.Vamsee Krishna vyas

C Hitesh Reddy
Meda Aditya reddy
Giridhar Shashank
Prasanth Gumma
 Walmart stores, Inc. founded in 1962 by Sam Walton
Within 6 years it entered into U.S., stock market
It mainly followed low-price strategy to achieve the
profits
Wal-Mart ensures regular low costs and thinks of them
as the one stop shop.
It is a retailing pioneer with $100 billion revenue, 3,000
stores and more than 750,000 workers around the world.
Experienced success in United Kingdom, South
America and china
In many countries it is known as Best price.
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Political stability in different countries is desired for outcome of favorable government

policies
Support for globalization should be there from the governments side.
Pressure for High Wages, can reduce the profits of the company and also to increase the
prices of the goods
It has emerged as a symbol of American culture and it is a target of political goverments
of other nations which it is clashing with their views
 P E S T L E

Increase growth of developed markets

Continued high pace growth of developing or emerging countries.
Increase in consumption levels of the people
Low margin of profit with high volume of sales strategy is being followed
Sales discount strategy should overthrow the economic pressures
 P E S T L E

Stability of the governments and the economy of the country

It should provide goods or services adopting to the nature of the country
Healthy lifestyle products have been offered to serve different segment of
customers
Best infrastructure facilities have been provided, which will increase the
shopping experience of the people.
P E S T L E

Should gather more data from the shopping patterns of the

customer and serve accordingly
Should increase its online presence in a more efficient & effective
manner
Increase Self-Check In & Self Check Out, processes in its stores
P E S T L E

Walmart should develop better employment

regulations.
Following the food regulations
Tax reform law, might have an negative effect on
the company
P E S T L E

Business Sustainability has been one of the top

most factors of the company
It has increased usage and sale of more
environmental friendly products.
Zero waste and better packaging methods are
adopted in the company
Increased its activities in preserving the wildlife
SWOT ANALYSIS
Strengths

S
Well Advanced Market
Networked Informatio Power
Supply n Systems
Chain
over
System Suppliers

Wide Diversity in
range of products
& services
operation
s
SWOT ANALYSIS
Weaknesses

W
Easily Low Profit High
imitable Margins Employee
business Turnover
model

Low Low e-
availability of commerc
spaces in
e
urban areas,
required for
presence
expansion.
SWOT ANALYSIS
Opportunities

O
Should Improving Developme
develop the quality nt of
standards of medium
presence in
the products stores, in
online and rural areas
market services.

Should Make
include alliances with
more other
organic companies in
foods & developing
products markets
SWOT ANALYSIS
Threats

T
Regulatory
Increasing Slow growth
resistance
competition of china,
from the
of e- brazil,
developing
commerce japan and
countries, to
market place Chile retail
protect the
markets
interests of the
local vendors

Rising
commodity
prices, which
will decrease
Walmarts
competitive
edge on
suppliers.
 Demographics

51st largest country in terms of area and 21st according to

population
Population- 68 million
Government- constitutional monarchy
92% literacy rate
Frontier market turning into a emerging market
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Monarchial structure
Export and tourism oriented
Political support for FDI
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Bangkok covers 60% of the GDP

High ease of doing business rank: 26th
Economic conditions encouraging development
like tourism
ASEAN deal making economy more deregulated
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

40% of the population use internet

E-tailing and social media have effect
on consumer buying decisions in retail
market
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Recent development in tourism

attracting new technological changes
Helping in business for multinationals
Also FDI has led to more technology
imports
PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Positive and welcoming landscape for doing

business
Retail sector fully open for FDI
Only some occupations are strictly for Thai
citizens which are mostly related to agriculture
Also inclusion in ASEAN group of countries has
resulted in many deregulations.

PESTLE Analysis

P E S T L E
Political Economic Social Technological Legal Environmental

Most of the land covered in forest.

Deforestation after development of
tourism
Stable environment for doing businesses.
 Thailand Retail Market

5 main types:
Hypermarkets
Supermarkets
Cash and carry
Convenience stores
Online stores
Target markets
Thailand Retail Market

5 main types:
Hypermarkets
Supermarkets
Cash and carry
Convenience stores
Online stores
Target markets
Number of outlets
Hypermarkets

About 90% of urban people visit every week

Two main players: Tesco and Big C
Concentration on fresh foods
Opening own label to sell goods
Hypermarkets
Cash and Carry stores

Dominated by a single player despite competition

Makro: 5 types of stores
Classic store: targeting primary small retailer and Hotel suppliers
Eco Store: serving tourists in cities
Eco plus store: Professional retailers and hotels
Siam frozen shop: frozen foods. Small stores in local areas
Makro is taken over by Siam.
Siam Makro is est. in 1962 and their long term serving to all suppliers
and wholesalers has resulted in near monopoly.
Supermarkets

Mainly dominated by 5 players:

Central food retail
The Mall group
Foodland supermarket villa market
MaxValu supermarket
UFM Fuji
Convenience store

Most important retail market

Dominated by 7 Eleven with 70% market share
Only competitor is Tesco
Successful due to local price advantage and distribution networks
$40 spent by an average Thai in convenience store and about 90%
visit it 13 times a week
Online store

Recent development
Entered by Tesco and Central food retail
Customer buying patterns

Increase in high spending customers in urban areas

Search for premium and quality products mainly imports
Tourists attracting more retail sales
Thai government initiatives taking the economy more cashless
Strongly influenced by social media and e-tailing platforms
High shopping frequency similar to India and China and different
from US
Preference on variety, convenience and little on price
Prefer with good after sales service
Not very high savings
ENTRY STRATEGIES
MEXICO- TRANS NATIONAL
STRATEGY
Joint venture with retailer.

Competitive advantage gained on the distribution channel.

Adaption according to tastes and consumer demography.

Expansion on their own.

CHINA- TRANS NATIONAL STRATEGY

Super store entrance.

Took time to adapt.

Adapted to various consumer tastes and packaging sizes.

Acquisition to expand.
FINAL STRATEGY

The transnational strategy used by them in Mexico and China with a base of 2 components,
1.Adpation via Joint ventures or acquisitions due to their high buying power

2. Cost leadership -company philosophy, Everyday low prices

The final strategy is the entry into the retail sector with,

Joint venture or Acquisition of local ]wholesale stores DISTRIBUTION CHANNEL (CA).

Supermarket sector with advantage and gain market share - adaption strategy and buying
power.

Convenience stores after trust and profits are achieved