The WAL- MART story

$,2,943 $,2,943
ounded in 1962 by Mr.Sam Walton
irst store opened in Bentonville,Arkansas
Today 6600 stores worldwide in countries like -
Honduras,Japan,Mexico,Nicaragua,Puertorico,Argentina,Brazil,
Canada,China,Costa-rica,El-salvadore,Guatemala and the U.K.
1.3 million people working
Sales Ior 2006 estimated to be $ 1billion per day.
EAR - 2001
ortune co.named Wal-Mart as the 3
rd
most admired company
oI America.
The inancial Times and Pricewater house coopers ranked it as
the 8
th
most admired company in the world.
EAR - 2002
Rated as the no.1 company on the Iortune 500 list.
Presented with the Ron brown award Ior corparate leadership.
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TIe WInnIng sLruLegy- seIIIng brunded
producLs uL Iow cosL.
Non dependence on uny sIngIe vendor.
ReIIubIILy on ILs own dIsLrIbuLIon sysLem.
ntensive People Iocus
'Associates and NOT employees.
Various schemes and programmes Ior associates :
ncentive bonuses
A discount stock purchase plan
Promotion Irom within
Pay raise based on perIormance and not seniority.
An open door policy
ntroduced proIit sharing in 1971.
ROLE O TECHNOLOG
mplemented a satellite net work system.
Process like ordering ,shipping ,communications
and logistics were automated.
Store level data sales were collected ,analyzed and
transmitted electronically on a real time basis.
On November.27 2006,bharti enterprises and WAL-
MART entered into joint venture oI equal partnership
to Iunction in the cash and carry` Iormat.
By Aug.2007 - Iirst store in ndia.
Present status :
Recruitment
Negotiations with potential customers
Market surveys are on.
l!.!I
n the market with old players like Pantaloons,Rahejas and
RPG and new players like Reliance ,Aditya Birla group.
Partnering with Wal-Mart will give other players a run Ior
their money.
`.l'.!
Partnering with bharti will give Wal Mart access to the 8
th
largest retail market in the world valued at $320 billion.
Advantage Bharti
Huge ground network in the country already through
its telecom business
Knows the ndian landscape and understands the
demographics in this country.
Knowledge oI where to get the real estate Ior the
business.
Advantage Wal-Mart
Companies innovative inIormation technology .
Highly eIIicient service channel management
which makes it possible to buy directly Irom the
producers.
Company has tremendous sourcing eIIiciencies
which will bring economies oI scale Irom day one.
M
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t will operate hypermarkets,convenience and speciality stores
as well as business to business operations ,sell Iood ,clothing
,electronic consumer durables,luxury goods and Iinancial and
travel services.
INFINITY PETAIL
The Tata group has partnered with Wool Worths ,Ior servicing
and technical support .t opened the Iirst store in Mumbai in
Oct.2006.
PANTALOONS
BG BAZAAR are rapidly expanding and are planning to open
100 stores by dec.07
1 lL^k ll^ '
ear oI Wal-Mart
NO,NO
WAL Mart is not invincible
Last year it has to Iled Irom Germany and South Korea
n Germany it lost $863 million (rs.4056 cr.)and sold all its 85
stores to Metro.
n South korea
Had to sell all 16 stores.
Reasons
Local German stores Aldi and Lidl able to deliver
good quality grocery at aIIordable prices.
Opened all stores in suburbs customers were very
reluctant to drive that Iar.
Unable to understand the customer insights well
ndia is not America..
ndia is one country, but a hundred diIIerent
markets.
States, Union Territories, diIIerent oIIicial languages,
hundreds oI dialects, multiple ethnicities, cultures and habits..
Geographical challenges :
ndia has times more people then America
Population density times that oI America.
Look at China .
The country has nearly 200 stores owned by Wal Mart ,Tesco and
CarreIour yet domestic retailers are strong.
The big ndian plans.
Reliance intends opening more stores (around 6,000)
n 5 years than Wal Mart has opened in 44 years .
Advantage retail
OOST EMPLOYMENT
America has more Wal Mart employees then high school
teachers.
n China employing 150,000 people in next 5 ears.
CREATION OF WEALTH
They pay producers more and charge consumers less.
Resulting savings generate employment when they are spent on
other goods and services.
WLL WAL-MART SUCCEED N NDA ???
T WLL SUCCEED BECAUSE :
t has the best know how to provide the right set
products to the right set oI customers.
Customers are also hungry Ior new ways oI
shopping.