Submitted By, Nikhil Kumar Garg (BM-09123) Nimisha Gupta (BM-09125) Pallavi Singh (BM-09134) Pallavi Misra (BM-09133)
Submitted By, Nikhil Kumar Garg (BM-09123) Nimisha Gupta (BM-09125) Pallavi Singh (BM-09134) Pallavi Misra (BM-09133)
• It is the largest majority private employer and the largest grocery retailer in
the United States.
• In 2009, it generated 51% of its US$258 billion sales in the U.S. from
grocery business. It also owns and operates the Sam's Club retail
warehouses in North America.
• Wal-Mart operates under its own name in the United States, including the
50 states. It also operates under its own name in Puerto Rico. Wal-Mart
operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda
Wal-Mart" in some branches), in Japan as Seiyu, and in India as Best Price.
• its operations in the United Kingdom, South America and China are highly
successful, while it was forced to pull out of Germany and South Korea
when ventures there were unsuccessful.
•Currently, there are three main incumbent companies that exist in the same
market as Wal-Mart: Sears, K Mart, and Target. Target is the strongest of the
three in relation to retail.
•Target has experienced tremendous growth in their domestic markets and have
defined their niche quite effectively.
•Sears and K-Mart seem to be drifting and have not challenged K-Mart in
sometime.
•Mature industry life cycle.
Bargaining Power of Buyers
•Since Wal-Mart holds so much of the market share, they offer a lot of business to
manufacturers and wholesalers. This gives Wal-Mart a lot of power because by
Wal-Mart threatening to switch to a different supplier would create a scare tactic
to the suppliers.
•Wal-Mart could vertically integrate.
•Wal-Mart does deal with some large suppliers like Proctor & Gamble, Coca-Cola
who have more bargaining power than small suppliers.
Substitute Products
•When it comes to this market, there are not many substitutes that offer convenience and
low pricing.
•The customer has the choice of going to many specialty stores to get their desired
products but are not going to find Wal-Mart’s low pricing.
•Online shopping proves another alternative because it is so different and the customer
can gain price advantages because the company does not necessarily have to have a brick
and mortar store, passing the savings onto the consumer.
SWOT ANALYSIS
STRENGHTS
• Customer oriented
• SAM’S Club customers able to buy in bulk
• Supercenters offer one stop shopping
• Satisfaction guaranteed programs promoting
• customer goodwill
• Buy from local merchants when possible
• Stock ownership and profit-sharing with employees
• Leads industry in information technology
• Ongoing development of its employees
• Strong community involvement
WEAKNESS