AIS St. Helens
Business Strategy and Change Management
Topic: Wal-Mart’s Business Strategies
And Its Entry Into Indian Retail Market
Submitted To: Dr. John Tan
Submitted by: Gurpreet Singh Pannu
By using the Advanced IT system Walmart has shown a continuous achievement and with a system that allows all the managers to post their point of view for the betterment of the company. Walmart itself has discovered two largest retailers one in Mexico and other one in Canada in 2004 and 2008. Walmart expanding their business successfully all over the world. With the use of information system and by integrating themselves with the Japanese retail companies Walmart showed 94% of inventory accuracy in all countries where Walmart was doing its operations. Walmart is focusing on its strong point and their key customers by which Walmart can increase its sales more than $200 million in the next 3 years. Walmart built its vision that by keeping the prices low customers will buy more products in bulk which increase their sales and thus results in more profit. Walmart provide a huge variety of products and services to the all type of customers which is very useful to them. Their main focus is to provide high quality trustworthy products to large, medium and small families. Walmart is looking forward to achieve three main targets that are: * Charging less for offering and delivering products at home to the customers. * 20% - 30%. Increasing the profit margins
* Sale of hardware products increasing around 30% in the 3rd year. Walmart adopted a public affair strategy that helps Wal-Mart to move its operations to other foreign nations and that makes them huge profit. Currently Walmart is in competition with K-mart which is at number second after Walmart in the US retail market. Walmart have around 1636 retail stores, 1093 supermarkets on their names and they have around 1183 international stores worldwide that are increasing day by day.
Sam Walton founder of Walmart opened his first Wal-Mart discount store in 1962. At present there are about 600 stores all over the US and these stores have approximately 106000 square feet area. These stores are providing pleasing customer service and satisfying shopping experience to all the customers. Wal-Mart are stocked with variety of good quality and valued priced products such as: Toys, Electronics, Hardware, Jewelry, Health and beauty products, Home appliances, House wares, Pet Supplies and Family Clothing’s. Each store has employee of roughly 225 .In the financial year 2010 the Wal-Mart store generated $258 billion or 63.8% of the total sales in this particular year. There are more than 3000 supercentre across nationwide and most of them are open 24 * 7. These supercenters were developed to meet the rising demand for the low prices products. They save a customer’s time and money by merging a full grocery and all the general merchandises are under one roof. The supercenter groceries highlights bakery goods, beverages, fresh produce, frozen food, spices, meat and dairy goods canned and packed goods etc. Wal-Mart Express Stores: Wal-Mart Express Stores was created to offer low price everyday products to customers who are in rural and urban areas where they may not have much access to the larger stores. The two of the initial Wal-Mart Express Store was opened in Northwest Arkansas in June 2011.
Three retail formats of Walmart have become famous in the United States of America such as discount stores, supercentres and Walmart markets. This retail section sell a huge range of known grocery products but now the focus has shifted towards supercentres which includes all the grocery items. Wal-Mart.com is one online retailer where the customers can buy any kind of products online and can also inquire about the products and...
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