Letter of Transmittal

Date: 29th august, 2016

Ms. Sharmin Farah
Lecturer, School of Business and Economics
United International University.
Subject: To submit a report on Wal Mart
Dear Mam,
We are very delighted to submit the report on Wal Mart. Our main incentive is to prepare
this term paper according to your guidelines in accordance with your instructions. We
have tried our best work as per your structures & we believe that we have done an
adequate job considering our level of experience and expertise and are able to relate
the fundamental things with realistic applications.
We are extremely grateful for the opportunities that you gave us.we earnestly hope that
you will like the work that we have done. Furthermore, we stand by to answer all queries
regarding our work and pledge that our work of our varied skills and had work.

Sincerely,
1.Nurun Naher Akter.
2.Laiba Tabassum
3.Nasrin Jahan
4.Farzana Hossain

Acknowledgment
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All praise to Allah, our creator and sustainer, for giving us the strength to prepare this
assignment. Our heart full thanks to our course teacher Sharmin Farah for giving
suggestion as well as guideline, which helped me in completing this report. As we are
the student of BBA, most of us (after completing BBA degree) will join in EB Sector so it
is very important to know about any companies online & offline section. The successful
accomplishment of this report is the outcome of the contribution and involvement of a
number of people, especially those who took the time to share their thoughtful guidance
and suggestions to improve the report.
We have deepest gratitude to our respected course instructor Sharmin Farah
Mam(Lecturer, School of Business and Economics, United International University). We
are thankful to him for his continuous support and supervision, suggestions and
providing us with valuable information that was very much needed for the completion of
this report.

Executive summery

Introduction
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Wal mart is the worlds largest company which has about 11000 stores in 27 countries.
Wal mart has 2.2 million employees or associated which make one of the biggest
employer in the world. It operates a chain of hyper market discount department store &
grocery store. The company was established by SAM WALTON in 1962& incorporates
on October 31; 1969.wal mart is the largest company of revenue. It is also one of the
most valuable company by market value & is also the largest grocery retailer in US in
2016.it generated 62.3% of sales in USA .In the late 1980s to the 1990s the company
rose from a regional to a national giant. By 1988 a Wal mart was the most profitable
retailer in the US.

Background of Wal-Mart

In the late 1940s, when Sam Walton was franchising a Ben Franklins variety store in
Newport, Ark., he had a simple but momentous idea. Like any retailer, Walton was
always looking for deals from suppliers. Typically, though, a retailer who managed to get
a bargain from a wholesaler would leave his store prices unchanged and pocket the
extra money. Walton, by contrast, realized he could do better by passing on the savings
to his customers and earning his profits through volume. This insight would form a
cornerstone of Waltons business strategy when he launched Wal-Mart in 1962. By
1967, the company grew to 24 stores across the state of Arkansas, and had reached
12.6 million in sales, and by 1968, the company opened its first stores outside of
Arkansas in Sikeston, Missouri and Claremore, Oklahoma. The company's first stock
split occurred in May 1972 at a market price of $47. By this time, Wal-Mart was
operating in five states: Arkansas, Kansas, Louisiana, Missouri and Oklahoma, and
expanded into Tennessee in 1973, and Kentucky and Mississippi in 1974. As the
company expanded into Texas in 1975, there were 125 stores with 7,500 associates,
and total sales of $340.3 million. By 1977, Wal-Mart expanded into Illinois and made its
first corporate acquisition, assuming ownership and operation of the Mohr-Value stores,
which operated in Missouri and Illinois. This was followed by the acquisition of the
Hutcheson Shoe Company in 1978. In the same year Wal-Mart also branched out into
several new markets, launching its pharmacy, auto service center, and jewelry divisions.
When Wal-Mart first established they follow some generic strategy the firms focus is on
maintaining low prices of goods and services. Wal-Mart is known for low prices, which is
the main selling point of the business. After that they also follow some intensive
strategy. In this strategy market penetration, market development, product development
is the main focus point.

Vision: The Company traces its success to the ideals of its founder, Sam Walton.
These ideals are emphasized in Wal-Marts vision statement: To be the best retailer in
the hearts and minds of consumers and employees. The company aims to achieve a
top position in the retail industry.

Mission: We save people money, so they can live better" serves as Wal-Mart's
mission statement. Wal-Mart is a retail giant with stores scattered worldwide. The store
sells a variety of merchandise, groceries and pharmaceuticals. The mission statement
along with some down home management practices has sparked the success of this
retail empire. Sam Walton believed in serving his customers in an atmosphere of
respect and friendliness. He stated, "The secret of successful retailing is to give your
customers what they want." He knew that part of what they want is to save money, and
thus the store's mission statement was born.

Wal-Marts product and service:

Wal-Mart as the largest retailer on the planet, Wal-Mart operates 4,300 stores and
facilities in the United States alone. International facilities span the globe and number
4,000. The retailer offers a variety of services, including retail goods, pharmacy,
financial, wireless and photo lab services.
Retail goods
Wal-Mart offers retail goods in a variety of categories. Customers can buy electronic
products such as MP3 players, digital cameras, printers, laptops and computers. WalMart offers music downloads movies, books and jewelry. In addition to home
furnishings, the retailer also offers baby products, sporting goods and grocery items.

Photo Services
Wal-Mart offers photo lab services inside stores and online. Customers can drop off
their photographs for developing via a store kiosk. They can also upload their digital
photos via the corporate website. Pick up photos at a store location or have them sent
to a home address. The photo lab offers customers the option to develop the prints in an
hour.

Pharmacy
In 2006, Wal-Mart began offering customers prescriptions for a mere $4. This practice
was significant, with many retailers following suit. The company estimates savings to
customers total $3 billion since the program's inception. Wal-Mart offers monthly
prescriptions for pickup in-store or mail order services for long-term medications. The
savings are due in large part to Wal-Marts catalog of over 300 generic medications
available for $4 in-store or $10 for a 90-day supply.
Those are the basic product of all the product departments.

INITIAL CAPITAL
Walton decided, in 1945, to open his own department store. Acquiring $20,000 in capital
from his father-in-law, he purchased a Butler Brothers franchise store (Ben Franklin) in
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Newport (Jackson County). Though it would be another seventeen years before he

established the first Wal-Mart outlet, the companys eventual business practices were
formulated during the 1940s and 1950s. Walton proved to be innovative in improving
throughputthe tight control of inventory flow that is necessary to maximize profits.
Walton maintained constantly stocked shelves and kept tabs on which items sold and
which did not. He also began the practice of buying goods wholesale and selling them
to consumers at discounted prices.

Target audience
When Wal-Mart first started it tried to serve customer in several homogenous group in a
particular place. As they started as a regional retail store they only target the people of
this region. when they expand their business they segmented the market and serve the
mass audience of that market.

Eight Unique Features of Ecommerce

Ubiquity: ubiquity means available just about everywhere at all times. as wal mart
when it was first started it was offline business. it had only physical store. Now it has
both online & offline business. For the offline business they have to give 24 hour
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services & it has available at all times. It creates an online market space which crosses
the traditional boundaries so it maintains ubiquity.

Global reach: ecommerce technology permits commercial transactions to cross

cultural, regional & national boundary. Far more conveniently & cost effectively than a
true in traditional commerce. A wal mart starts online business & enters in ecommerce.
The potential market size for ecommerce merchants is roughly equal to size of worlds
online population. So wal mart also crosses the boundary. So it maintains this feature .

Universal standard: Standard those are share by all nations around the world. WalMart has an online business for this it reduces the search cost, market entry cost and
people can easily discover the price. It is also possible for the first time in the history
find the supplies, prices, and delivery term of a specific product from anywhere in the
world. Wal-Mart maintains this standard.

Richness: The complexity and content of a massage. In traditional market they

provide personal, face to face service, so they have great richness. On the other hand
internet has the potential for offering considerably more information and it is interactive
and can adjust the message to individual user. As the Wal mart has both online and
offline business they have a great business.

Interactivity: Technology that allows for two way communication between merchant
and consumer. For the wal mart when they start online business after on line business
they have to give same type of services for communication, which they give offline, that
is interaction between the merchant and consumer. Without interaction buyer cannot
buy products and seller cannot sale product properly. So Wal-Mart maintains
interactivity.

Information density: Information density means the total amount & quantity of
information available to all market participate. As wal mart has online business this
technology greatly increased the accuracy, currency & timelineness of information.
Making information more important & useful than ever. To do online business wal mart
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have to give more detail & clear information about the product. So it makes product &
cost transparency.

Personalization & customization: Wal-Mart does not follow personalization in

offline business. But online business they can personalize product such as jwellary,
shoes,

dress

etc.it

tends

to

reach

to

the

mass

market

toward

mass

customization.wallmart customer can be divided into three groups.

1. Brand aspiration
2. Price sensitive
3. Value price shopper.

Social technology: All large companies included Wal-Mart has focused a lot off
resources on social media. This is because it is one of the best types of marketing. Due
to consistence result. There are many different social media strategies that are out there
but two that have proven to be the best would be blogging & video sharing & then
linking those content posts with social networking profiles.

Business model of Wal-Mart

Wal-Mart business operation is organized into three business segments:

1. Wal-Mart US.
2. Wal-mart international.
3. Sams club.

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Wal-Mart US: Wal-Mart us is the

largest segment & operates retail stores
in all 50 states in the Us ,Washington
DC & pier to rico .wal mart US does
business in six strategic merchandise
units

include

wellness

grocery,

,entertainment,

health&
hardiness

,appear &

home. In provide physical & digital

access in

31 states.

Physical Access: it provides physical access three primary store formats that
include such as super centens, discount store, neighobourhood market & other small
store formats.

Digital Access: Wal-Mart Us provide digital access to a broad assortment of

marcentise service to customer through ecommerce website & mobile commerce
applications .In the B2C business model Willmar Pick up & pick up today. are two
online services .it also offer digital streaming services like VUDU & INSTA WATCH.

Wal-Mart international: Wal-Mart international segment consist of operation in 26

countries outside the US and include numerous formats divided into three major
categories: retail, wholesale, and other.It operates through its wholly owned subsidiaries
and joint venture across these countries. Wal-Mart operates through 156 distribution
facilities to meet customer demand. Wal-Mart international segment operates
ecommercein10 countries(argentina,brazil,Canada,chili,china,india,maxico,japan, south
Africa, and the united kingdom). Digital retail support physical stores with capabilities
like click & collect in the UK and grocery home delivery business in Mexico.

Sams club: Sams club segment operates membership only ware house clubs as
well as samsclub.com.it offers its subscription services to both individual and business
owner. It does business in 5 strategies merchandise units that include: grocery, and

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consumables, fuel and other categories home and appliance techonology,office and
entertainment ,health & wellness.

The main element of Wal-Mart business model:

Wal-Mart maintained its global leadership in retail segment by leading on price and
assortment. Wal-Marts legendary EDLC (every day lower cost)and EDLP(everyday
lower prices) strategy helped it become the worlds largest company. This is the value
proposition. To deliver its value proposition wal-mart communities with and reaches its
customer segment with its distribution channel. The key activities which are needed to
run Wal-Marts business model are:

Purchasing goods

Their delivery

Total cost control

Stores & logistic, HR, and experienced managers are key sources of a business model.

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Marketing strategies
Wal-Mart business is being led by the following four strategic pillars:

1. Lead on Price.
2. Invest differentiate on access.
3. Be competitive on assortment.
4. Deliver a great experience.
5. Social media campaign.
The following diagram highlights the key elements of Wal-Marts evolving business
model that are helping Wal-Mart execute its strategy.
WALMART PAYMENT OPTION
Walmart.com accepts the following payment methods

Credit cards, including American Express, Discover, MasterCard, and Visa

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ATM / Debit / Check Cards, including Wal-Mart Money Card

Wal-Mart Credit Card and Wal-Mart MasterCard

Wal-Mart Gift Cards and Gift Cards PayPal

Pay with Cash (cash, checks, EBT, and money order can also be used with this
method)

PayPal

Bill me later.

Revenue model: In case of offline business they get revenue by selling their
goods & services. In the online business they follow sales of good revenue model
& now they started to follow affiliate revenue model to expand their online
business.

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Main Content

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There website offers ..

1. Electronics product.
2. Food product
3. Baby product
4. Grocery product
5. Accessories Product
6. Movies, goods, furniture.etc
Wall mart has mobile web site & mobile web app but it has no native app.

Wal-mart mobile website: they are two website sites. Such as---1. Corporate website
2. Commercial website.
Mobile web site is the small version of regular desktop website .this two web site of walmart can use in mobile phone navigation so that user can find what they want & move
quickly to a decision all purchase.

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Wal-Mart Mobile App: Wal-mart offers a variety of mobile apps that are sure
to keep prices low. By using iphone or android Wal-Mart has a shopping app for
its customer. For accessing the Wal-Mart mobile app just visit walmart.com.by
using the customer device browser.

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COMPETITORS
They are the main competitor of Wal-Mart :
Amazon
Ali Baba
E-bay
K-mart
Costco
Differentiate of the company----

As the largest retailer in the U.S., Wal-Mart is sometimes credited with launching a new
business model in retailing, dominating competitors like K-Mart and Target. Once again,
Wal-Mart's dominance has nothing to do with its business model, and everything to do
with its business strategy. To the average consumer in the 1980s and 90s, there was
very little difference between K-Mart, Target, and Wal-Mart. All three retailers were big
brand discounters, with open floor plans and aisles and aisles of products As the
industry evolved, Wal-Mart came to dominate K-Mart and Target through everyday low
pricing, with Target choosing to move up market by focusing on higher quality products.
To the uninitiated, this story looks like a simple case of one company dominating an
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industry, forcing one competitor to change strategy and forcing the other into
bankruptcy. But there is more to the story. In any low margin industry, operational
overhead is a critical success factor. All three competitors were employing the
traditional retail business model, and there was very little in the early years that made
one competitor stand out over another. Wal-Mart chose a simple strategy that would
change the game and keep its overhead consistently lower than that of Target or KMart. This strategy took advantage of the growing urban sprawl occurring around the
U.S. by building large stores in suburban areas where property costs were lower than
the urban centers preferred by other retailers. Essentially, Wal-Mart chose to cede the
large cities to K-Mart, and dominate the suburban communities where those working
around the city returned to sleep, live, and shop. This simple change in strategy made it
possible to undercut K-Mart pricing as a result of lower overhead, while also creating a
magnet for urban shoppers willing to drive outside the city limits to find lower prices. KMart and Wal-Mart were employing identical business models.

On Wal-Marts size compared to Amazon. It is not just the worlds biggest retailer but
also its largest private employer and company, measured by revenue. Last year it raked
in $482 billion. Wal-Marts empire is global, but America is its particular dominion,
accounting for three-quarters of its sales. And on home turf Wal-Mart still towers above
Amazon, accounting for 10.6% of Americas retail sales, more than twice Amazons
share, according to Cowen, a financial-services firm (see chart 1). Yet Amazon is still
growing fast, and Wal-Mart may be past its peak. In 2009 Wal-Mart commanded 11.6%
of American retail sales. By 2018 Cowen reckons its share will be stuck at 10.6%,
whereas Amazons will have jumped. Amazon is the king of retail, and now reeling. In a
deal announced Monday, Wal-Mart acquired e-commerce startup Jet.com for $3 billion
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in cash plus an additional $300 million in Wal-Mart stock. This deal is clearly part of WalMarts bid to take on Amazon, which currently brings in about $100 billion in annual ecommerce sales against Wal-Marts roughly $15 billion. Wal-Marts total revenue, we'd
note, is nearly $500 billion. This size gives Wal-Mart advantages other retailers dont
have. With this size comes considerable buying power, which helps with prices and
margins. But more importantly, its size gives Walmart a fighting chance in what is really
Amazons game: Building infrastructure. (High capital expenditure, big moats, large taxlike businesses)But for this to lead to any meaningful impact on Wal-Marts business,
the retail giant needs to have the matching mentality and corporate culture, to, you
know, actually leverage this.

Aliibaba is a significant threat for retailers, Wal-Mart in particular. The Chinese ecommerce giant is determined to penetrate the US market. Not only will the company
soon go public in the US, but it is eyeing several US-based tech startups and partners
to help grow its business. Most recently, Alibaba was reportedly involved in a $10 million
talk with popular messaging start-up, Snap chat Alibabas IPO is expected to raise the
company billions of dollars, and with that, a series of acquisitions will likely occur aimed
to expand the companys global footprint and stronghold in the e-commerce sector. This
is bad news for Wal-Mart. Business Week reported that Alibabas IPO may very well end
US dominance in e-commerce. While Wal-Mart is the only one of its kind in terms of
size, scale and value proposition, it is not a pure e-commerce player like Amazon or
Alibaba. There is still a brick-and-mortar business to consider, and with that, more
resources and investments must be made to streamline the customer experience on
mobile, online and in-store. This is why Wal-Marts personalization strategy is so critical.
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It is the glue that ties all of Wal-Marts channels together. Customers on mobile will have
the same personalized experience as they would on desktop or in a physical location.
Wal-Marts changes are important for the retail industry because they underscore the
need to meet customers where they are now (on mobile) and address their desire for
engaging and personalized content, while also keeping the company competitive. We
will likely see other e-commerce players follow Wal-Marts lead, and itll be important to
do so with the Alibaba threat looming over the industry.

The consensus of eBay categorizing as a generative website tool came from the usage
of ecommerce, allowing buyers and sellers access to an entire global market. Its
content must follow five simple rules in order to be considered generative. These five
include: leverage, adaptability, ease of mastery, accessibility and transferability.
Leverage makes a difficult job easier. EBay was created for people to sell their
valuables, or not so valuables, online to other users who may be interested in their rare
item. Instead of holding a garage sale, hoping to grab someones attention, eBay allows
the seller to post a listing of an item one day, and return a few days later to check on the
progress. As far as adaptability, eBay is a very adaptable site in that it allows buyers
and sellers to make use of the site. Instead of a generative website such as Wal-Mart,
where consumers can only buy products, eBay allows the sale of products and includes
features like user reviews, characteristics of products and sometimes pictures to show
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the customer what they are purchasing. In applying the third rule ease of mastery, eBay
can be a little tricky. A new user may be unsure of how to operate and manage accounts
of their items, but after much use it becomes easier. The art of bidding also gets
painless with time. During the first time bidding, users will find out that veteran bidders
wait until the last second to raise the price on an item causing their competition to lose
the auction. Its all about the technique! When it comes to accessibility in generative
content, eBay is highly accessible. Since the website is an internet based service it gets
great attention. The internet has been one of the most widely used mediums to gain
information and now is used to buy retail items. EBay is utilizing this medium to make
fast and convenient purchases with quick delivery time while interacting users with the
bidding forma

In conjunction with its subsidiaries, operates membership warehouses where a

wide variety of consumer goods are sold wholesale. Both brand name and private-label
products are sold across a vast array of merchandise categories, such as snack foods;
dry/prepackaged foods; tobacco; alcoholic and nonalcoholic beverages; cleaning
supplies: electronics; health and beauty aids; office supplies; deli and produce; and
apparel. Costco also operates pharmacies, photo centers, food courts, gas stations and
several additional services. As of 2014, Costco operates over 650 warehouses, with
approximately 470 in the United States and Puerto Rico combined. The company also
has warehouses in Canada, Mexico, the United Kingdom, Japan, Korea, Taiwan,
Australia and Spain. Previously known as Costco Companies, Inc., Costco was
established in 1976 and is headquartered in Issaquah, Washington.

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Recommendatio
n
&

24

Co
nclusion

Recommendation

Wal-Mart needs to expand their to business in Middle East .

They must be provided all services at all store.
Make sure to deliver product on time.

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Conclusion
Wal-Mart started as a family business of retail good. By expanding its business it is now
worlds largest retail Goods Company in the world. Though it has some scope to
improve & expand its business it provides much more good services than the other
retail store. that is the reason which make it &give

most important place in the

world.walmart owns 51% at USA.retail holding company which consist of 217 stores
Kenneth stone ,professor of economics at low state university ,found that some small
can lose almost half of their retail trade within 10 years of a Wal-Mart store opening. So
Wal-Mart is the big competitor for many types of company it can be direst competitor or
indirect competitor. So Wal-Mart can be challenging for the many start up & many
established company.

THE END

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Bibliography:
Website
1 www.google.com
2 www.wikipedia.com
3

www.Walmart.com

Book:
1. E Commerce. Business.technology.society.(Kenneth.C.laudon)

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"Wal-Mart" for the new chain.

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