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By: Se Kim

By: Se Kim. By: Se Kim Module 1: Understanding the business & its environment January 15, 2014. Wal-Mart Stores, Inc. World’s largest retailer $469.2 bn in total revenue Everyday Low Prices – “EDLP” 3 business segments: Walmart U.S. Wamart International Sam’s Club.

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By: Se Kim

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  1. By: Se Kim By: Se Kim Module 1: Understanding the business & its environment January 15, 2014
  2. Wal-Mart Stores, Inc. World’s largest retailer $469.2 bn in total revenue Everyday Low Prices – “EDLP” 3 business segments: Walmart U.S. Wamart International Sam’s Club
  3. Six strategic merchandise units 1. Grocery – food, beverages, health & beauty aids, pet supplies (55%) 2. Entertainment – electronics, games, videos, service contracts (11%) 3. Health & Wellness – pharmacy, optical services (11%)
  4. 4. Hardlines – automotive accessories, hardware, sporting goods, seasonal merchandise (9%) 5. Apparel – clothes, shoes, jewelry (7%) 6. Home – furnishings, housewares, décor, appliances (7%)
  5. margin support activities margin primary activities Porter’s Value Chain firm infrastructure human resource management technological development procurement service marketing & sales outbound logistics inbound logistics operations
  6. Support Activities Firm Infrastructure: 4,103 U.S. properties & 2,036 international prop. Over 100MN people visit the retail centers daily HR Management: Employed nearly 2.2MN associates internationally HR development that embodies the cost effective and customer oriented culture of the company
  7. Support (cont.) Technological Development: Information technology that links all aspects of the supply chain “Just in time” inventory management to reduce overhead Procurement: Supply management w/ a number of companies
  8. Primary Activities Inbound Logistics: Control the supply chain of merchandise, quality control of products, pressure vendors for cost reduction Operations: Fully stocked shelves, packaging the products, merchandise replenishing cycle Outbound Logistics: Delivery of products, up-to-date inventory, distribution centers, invoicing
  9. Primary (cont.) Marketing & Sales: Focus on the customer experience “Everyday low prices” – business model that drives its marketing Services: Usually open from 7am – 11pm Provides as much consumer products as possible
  10. Wal-Mart SWOT Analysis
  11. Key drivers: Per capital disposable income Participation in sports Number of adolescents from 10-19 yrs. old
  12. Per capita disposable income & Participation in sports
  13. Number of adolescents aged 10 - 19
  14. Key Success Factors: Production of goods favored by the markets What is expected to boost sales? Management of Seasonal Production On display prior and during product’s respective seasons Attractive product placement Economies of Scope Balance of price and quality of the product Having contacts in key markets
  15. Industry Porter Analysis
  16. Key drivers: Consumer Confidence Index, Population Declining Industry – with increased competition from supercenters Low margins & high competition b/w companies
  17. Questions??
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