Project 2: Corporate Research Walmart in Ireland

1. Project 2: Corporate ResearchWalmart in Ireland Alexander Khambir DarinaPchelnikova ErnestasSvoba JibekNurdin

2. WALMART: • Founded: in 1962 by Sam Walter. Now the family own 40% of stock • Mission statement: Saving people money so they can live better • Slogan :Save money, live better • 4 Values: Service to customers, Respect for the individual, Strive for excellence, Acting with integrity

3. BUSINESS OVERVIEW: • Segments: Walmart U.S., Walmart International, and Sam's Club

4. BUSINESS OVERVIEW:

5. BUSINESS OVERVIEW:

6. CUSTOMER PROFILE: • Age: from 14 to 80 years old • Income: 3 target groups- with income less than €10,000 per year- middle group: with income from minimum wage €16,000 to €35,000 per year- wealthier customers with income from €35,000 to €50,000 per year • Gender: both masculine and feminine genders • Marital status: married • Parental status: most likely has at least one child • Professional habits: low-skilled job which do not require high level of education

7. CUSTOMER NEEDS: • Buying habits: high volumes preferably each week • Interests: leisure activities in free time like movies, reading books, etc.; spending time with the family; house renovations and landscaping, etc. • Lifestyle: try to acquire the same privileges as middle class; tend to socialise with their families and friends, show interest in politics, and actively participate in life of their children.

8. KEY DIFFERENTIATION ADVANTAGES: • distribution capabilities (inventory management system) • costs saving strategy (“every day low prices”) • partnership with suppliers and contractors (big power over suppliers) • advantage of experience of market entry in other countries

9. MACRO-ENVIRONMENT POLITICAL FACTORS: • Taxation and inflation • Safety regulations • Political stability • Legal working requirements • Price regulations • Trade policies

10. ECONOMIC FACTORS: • Economic transformation from an agriculture focused economy to a knowledge economy. • Unemployment 11.9% • Gross National Income on average $41,140 • Currency is Euro

11. SOCIAL FACTORS: • Languages: English and Irish Gaeilge • International associations: • United Nations • Organization for Security and Cooperation in Europe • UNICEF • Free education: primary, secondary, third level education • Religion – Roman Catholic 86% • Demographics: majority of people are between 45 – 65 years old

12. TECHNOLOGICAL FACTORS: • Great infrastructure level • Technological country, however agriculture still plays an important role in the Irish economy • Businesses focuses more on technological applications • 77% of Ireland’s population was using the Internet

13. ENVIRONMENTAL FACTORS: • Waste management • Companies are required to acknowledge Social Responsibility • Climate change

14. LEGAL FACTORS: • Restrictive practices (Groceries Order) • Many retail associations opposed the restrictive (Groceries Order) • Health and safety regulations • Environmental laws

15. COMPETITOR’S ASSESSMENT: • Aldi (7.4% market share) • Dunnes Stores (22.1%) • Tesco Ireland (26.2%)

16. SUPPLIERS’ ASSESSMNET: • The power of suppliers diminishes near major retailers • The ability to source cheap products abroad gives the retailers' a huge advantage • Potential for backward vertical integration

17. BARRIERS: • Economy of scale • Limit pricing • Loyalty schemes • Distributor agreements • Set up costs • Positioning

18. RETAILERS: • Low possibility of alliance • Local management team and workforce • Building vs buying stores • Expectations: • Short run  Survive • Medium run  Penetration • Long run  Leadership

19. CONCLUSION: • Time question of entering • Waiting consumers • Well developed country • No impossible barrier • Enough strength to compete

20. THANK YOU!