营销管理营管walmart

1、Kevin ZhangErica NakaeMarketing ManagementProfessor Xiao Lu ContentAbout WalmartCompany overview and main business in the worldChina supermarket market, market size, growth rateWalmart Business model analysis How Walmart understand Chinese market and consumers?Situation and competitors analysisThe m

2、ajor problemsThe next step for WalmartAbout Walmart11About WalmartSam WaltonThe first true Wal-Mart opened on July 2, 1962. Soon after, the Walton brothers teamed up with Stefan Dasbach, leading to the first of many stores to come. He launched a determined effort to market American-made products. In

3、cluded in the effort was a willingness to find American manufacturers who could supply merchandise for the entire Wal-Mart chain at a price low enough to meet the foreign competition.Sam Walton was born in 1918, in Kingfisher, Oklahoma. Walton joined J.C. Penney as a management trainee in Des Moines

4、, Iowa, three days after graduating from college. Eighteen months later, he resigned in anticipation of being inducted into the military for service in World War II. In 1945, after leaving the military, Walton took over management of his first variety store at the age of 26. Walton pioneered many co

5、ncepts that became crucial to his success. 1962196919701990199119962002Walton opened the first Walmart Discount City store The company was incorporated as Wal-Mart Stores, Inc.Began trading stock as a publicly held company, and was soon listed on the New York Stock ExchangeBecame the most powerful r

6、etailer in the U.S.Opened the first store outside the U.S., entering MexicoExpanded into ChinaThe company was listed for the first time as the worlds largest corporation on the Fortune 500 list1About WalmartWalton familyChristy Walton is the wealthiest woman in the world, this title she has held for

7、 the past six years. She married intothe richest family in the world - the Waltons - and inherited her wealth when her husband John Walton, a former Green Beret and Vietnam war medic, died in an airplane crash in 2005. Shes the wealthiest of the Waltons thanks to an investment John made in solar pan

8、el maker First Solar.#8 $40.6 BillionJim Walton, a board member of Wal-Mart, is the youngest child of the superstores legendary founder Sam Walton. Outside of Wal-Mart, Jim Walton is chairman and CEO of the family-founded Arvest Bank, which has branches in Arkansas, Kansas, Oklahoma and Missouri. Th

9、e bank has assets of nearly $15 billion and had net profits of nearly $130 million in 2013.#9 $39.3 Billion1About WalmartWalton familyAlice Walton is an heir to the Wal-Mart fortune. With her billions, she has long focused on curating art. In 2014, she reportedly agreed to purchase a New Jersey home

10、 designed by Frank Lloyd Wright and have it moved down to the museums campus. Some of the pieces in the museum she donated from her personal collection, which is valued in the hundreds of millions of dollars. Shes also dabbled in political spending, mostly to the Republican party.S. Robson Rob Walto

11、n is the eldest son of Wal-Mart founder Sam and, as chairman of the board, the family face at the company. Outside of Wal-Mart, the Waltons venture capital firm, Madrone Capital Partners, owns a stake in Hyatt Hotels worth nearly $600 million. Before joining Wal-Mart, Rob was a partner with the law

12、firm Conner & Winters in Tulsa, Oklahoma.#11 $38.1 Billion#12 $37.7 Billion1About Walmart$70million$37.5millionCompany overview and main business in the world2Walmarts operations are organized into three divisions: Walmart U.S., Sams Club, and Walmart International. The company offers nine retail fo

13、rmats: supercenters, food and drugs, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants.2Company overview and main business in the world2Company overview and main business in the worldWalmart U.

14、S. is the companys largest division, accounting for $258billion (equivalent to $279billion in 2015), or 63.8 percent of total sales, for fiscal 2010. It consists of three retail formats that have e commonplace in the United States: Discount Stores, Supercenters, and Walmart Markets.Walmarts internat

15、ional operations comprised 6,337 stores and 800,000 workers in 26 countries outside the United States. There are wholly owned operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees worldwide, the company is the largest private employer in the U.S. and Mexico, and one of the

16、largest in Canada , Walmarts international division sales were $100 billion (equivalent to $108 billion in 2015), or 24.7 percent of total sales.Sams Club is a chain of warehouse clubs that sell groceries and general merchandise, often in bulk. Sams Club stores are membership stores where most custo

17、mers buy annual memberships. These memberships provides customers various benefits and convenience.Sams Clubs sales were $47 billion (equivalent to $50.8 billion in 2015), or 11.5 percent of total Walmart sales, during fiscal 2010.2Company overview and main business in the worldSupercentersWalmart N

18、eighborhood MarketSams Club2Company overview and main business in the worldSupercentersWalmart Supercenters are hypermarkets (combination of supermarkets and department stores) or full-service supermarkets, including meat and poultry, baked goods, delicatessen, frozen foods, dairy products, garden p

19、roduce, and fresh seafood. Many Walmart Supercenters also have a garden center, pet shop, pharmacy, Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, and numerous alcove shops, such as cellular phone stores, hair and nail salons, video rental stores, local bank bra

20、nches , and fast food outlets, usually Subway but sometimes Dunkin Donuts, McDonalds, Wendys, Checkers, or Blimpie. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.2Company overview and main business in the worldWalmart Neighborhood MarketWalmart Neigh

21、borhood Market is a chain of grocery stores that average about 42,000 square feet (3,901.9 m2). They are used to fill the gap between discount store and supercenters, offering a variety of products, including full lines of groceries, pharmaceuticals, health and beauty aids, photo developing services

22、, and a limited selection of general merchandise.2Company overview and main business in the worldSams ClubA warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the stores products, which makes these cl

23、ubs attractive to both bargain hunters and small business owners. Sams Club is an American chain of membership-only retail warehouse clubs owned and operated by Walmart. The clubs are able to keep prices low due to the no-frills format of the stores. In addition, customers may be required to pay ann

24、ual membership fees in order to shop. Some even got gas stations. Its major competitors are Costco and BJs Wholesale Club. In China there are 10.China supermarket market, market size, growth rate33China supermarket market, market size, growth rate3China supermarket market, market size, growth rateWa

25、lmart business model analysis44Walmart business model analysisBusiness model include value proposition, target customer segments, distribution channels, value configurations, core capabilities, value chain, cost structure, revenue model. Today, the type of business models might depend on how technol

26、ogy is used. For example, entrepreneurs on the internet have also created entirely new models that depend entirely on existing or emergent technology. Using technology, businesses can reach a large number of customers with minimal costs.4Walmart business model analysis1234Low costWalmart has lower o

27、perating expenses than the industry average. The primary cost advantage is Walmarts superior distribution capability.High volumeIndustry analysts watch Walmarts prices are low by the industry standard, which combined with its lower costs, indicates a strategy that aims at growth in volume through gr

28、abbing increased market shar.Customer satisfactionLow price, advanced data management means a better customer experience than at other discount retailers, even through Walmart remains a self-service.EDLP( everyday low price) that is Walmart s slogan and its business model, low price enable by operat

29、ing efficiently and buying power. Walmart business model4Walmart business model analysisVirtuous cycle of cost leadership strategyLow-cost investment strategyMaintain market sharekeep profit and sustainability advantagesExploit economies of scale to lower prices4Walmart business model analysisOne ma

30、jor factor of Walmarts success is its control of the suppliers. Its purchase strictly adopts the approach to force the price down comprehensively and make a strategic partner with its suppliers. This kind of purchasing can skip most of the middlemen and make a profit from the suppliers to a great ex

31、tent. As Walmart seeks the lowest price, its purchase cost should also be reduced as much as possible. To seize the client, many of the suppliers have to lower its profit, which also leads to a series of problems, for example, the employees in the suppliers company are oppressed. The control of the

32、suppliers?Walmart in China: How Walmart understand Chinese market and consumers?55Walmart in China: How Walmart understand Chinese market and consumers?In February, 2007, Wal-Mart purchased Trust-Marts 35% stakes at the price of 264 million. At the same time, Wal-Mart has provided a loan of 376 mill

33、ion for other stockholders for the exchange of another 30% the voting rights, so has controlled the business running of Trust-Mart.Wal-Mart anticipates through such acquisition to avoid some policy restrictions issued by Chinese government on overseas-funded enterprises. Meanwhile, such acquisition

34、has made the newly opened stores by them in 2007 are much more than those by its competitor Carrefour which also has laid its position in Guangzhou market. WalMart merges and acquires Trust-Mart 5Walmart in China: How Walmart understand Chinese market and consumers?In October 2012, The Store announc

35、ed the plishment of stock-holding increase by Wal-Mart for itself with a stock share of 51.3%. Investment for The Store symbolizes that Wal-Mart has officially entered into Chinese merce markets; this has produced some impacts on domestic merce market. For the The Store, the cooperation between the

36、two parties includes the partial shared warehouses, the third-party inter-city transportation resources; this has made up the ings that only large cities such as Shanghai, etc, have established the warehouses. Meanwhile, by the reference of Wal-Marts management system of warehouse, The Store has imp

37、roved its degree of automation. The cooperation of Wal-Mart with The StoreSituation and competitors analysis66Situation and competitors analysisGobal supermarkets sales ranking6Situation and competitors analysis China supermarkets sales ranking6Situation and competitors analysissupercenterssams clubGuangdong623Fujian271Zhejiang271Jiangsu241Sichuan21Yunnan19Hubei18Anhui17Shanghai171Hunan14Jiangxi13Chongqing13Liaoning131supercenterssams clubBeijing122Henan9Hebei8Guizhou7Shandong7Jilin7Heilongjiang7Guangxi6Shanxi6Shanxi6Tianjin2Neimenggu136310What are the major problems Walmart facing?77What