The WAL- MART story

By :
Mahavir Jain
M.B.A (MKTG.)2005-2007
Faculty of Management Studies
Udaipur (Rajasthan )
 Structure of the presentation
WAL- MART – some facts
Accolades and recognition
How they did it
WAL-MART in India –the Bharti Wal-Mart deal
The Competition
Do we have to fear WAL-MART.
The future of mom and pop stores
Will WAL-MART be a success.
 Founded in 1962 by Mr.Sam Walton
First store opened in Bentonville,Arkansas
Today 6600 stores worldwide in countries like -

Honduras,Japan,Mexico,Nicaragua,Puertorico,Argentina,Brazil,
Canada,China,Costa-rica,El-salvadore,Guatemala and the U.K.
1.3 million people working
Sales for 2006 estimated to be $ 1billion per day.
YEAR - 2001
Fortune co.named Wal-Mart as the 3rd most admired company
of America.
The Financial Times and Pricewater house coopers ranked it as
the 8th most admired company in the world.
YEAR - 2002
Rated as the no.1 company on the fortune 500 list.
Presented with the Ron brown award for corparate leadership.
What it takes to be a
“WAL-MART ”
The Winning strategy- selling branded
products at low cost.

Non dependence on any single vendor.

Reliablity on its own distribution system.

 Intensive People focus

“Associates” and NOT employees.

Various schemes and programmes for associates :
Incentive bonuses
A discount stock purchase plan
Promotion from within
Pay raise based on performance and not seniority.
An open door policy
Introduced profit sharing in 1971.
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 ROLE OF TECHNOLOGY

Implemented a satellite net work system.

Process like ordering ,shipping ,communications

and logistics were automated.

Store level data sales were collected ,analyzed and

transmitted electronically on a real time basis.
On November.27 2006,bharti enterprises and WAL-
MART entered into joint venture of equal partnership
to function in the ‘cash and carry’ format.
By Aug.2007 - first store in India.
Present status :
Recruitment

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Negotiations with potential customers

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Market surveys are on.
Bharti
In the market with old players like Pantaloons,Rahejas and
RPG and new players like Reliance ,Aditya Birla group.
Partnering with Wal-Mart will give other players a run for
their money.
WAL-MART

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Partnering with bharti will give Wal Mart access to the 8th

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largest retail market in the world valued at $320 billion.

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 Advantage bharti

Huge ground network in the country already through

its telecom business
Knows the Indian landscape and understands the
demographics in this country.
Knowledge of where to get the real estate for the

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business.

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 Advantage Wal-Mart

Companies innovative information

technology .
Highly efficient service channel management
which makes it possible to buy directly from the
producers.

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Company has tremendous sourcing efficiencies

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which will bring economies of scale from day one.
 The
competition
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RELIANCE
It will operate hypermarkets,convenience and speciality stores
as well as business to business operations ,sell food ,clothing
,electronic consumer durables,luxury goods and financial and
travel services.
INFINITY RETAIL
The Tata group has partnered with Wool Worths ,for servicing
and technical support .It opened the first store in Mumbai in
Oct.2006.

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PANTALOONS

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BIG BAZAAR are rapidly expanding and are planning to open
100 stores by dec.07
DON’T FEAR INDIA !
 Fear of Wal-Mart
NO,NO

WAL –Mart is not invincible

Last year it has to fled from Germany and South Korea
In Germany it lost $863 million (rs.4056 cr.)and sold all its 85
stores to Metro.

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In South korea –

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Had to sell all 16 stores.
 Reasons

Local German stores Aldi and Lidl –able to deliver

good quality grocery at affordable prices.

Opened all stores in suburbs –customers were very

reluctant to drive that far.

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Unable to understand the customer insights well
 India is not America….

India is one country, but a hundred different

markets.

28 States, 7 Union Territories, 14 different official languages,

hundreds of dialects, multiple ethnicities, cultures and habits….

Geographical challenges :

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India has 3 times more people then America

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Population density 11 times that of America.
 Look at China …
The country has nearly 200 stores owned by Wal Mart ,Tesco and
Carrefour yet domestic retailers are strong.

The big Indian plans…

Reliance intends opening more stores (around 6,000)

In 5 years than Wal –Mart has opened in 44 years .

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 Advantage retail
BOOST EMPLOYMENT

America has more Wal –Mart employees then high school

teachers.
In China – employing 150,000 people in next 5 Years.
CREATION OF WEALTH
They pay producers more and charge consumers less.

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Resulting savings generate employment when they are spent on

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other goods and services.
 Future of mom and pop stores

Kirana stores offers services that are unmatched by

organized retailers.
Credit
Personal suggestions
Good relationships.

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Home delivery

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The U.S.P

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Their instant response to changing consumer needs.
WILL WAL-MART SUCCEED IN INDIA ???

IT WILL SUCCEED BECAUSE :

It has the best know how to provide the right set
products to the right set of customers.
Customers are also hungry for new ways of

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shopping.

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 SOURCE :
BUSINESS TODAY
RETAILER
ECONOMIC TIMES
THE WAL –MART WAY : DON SODERQUIST

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