Walmart’s Strategy Analysis

Team Victoria

Julie CousinJing MaAdéla KohoutovaRenato UhrovcikClara Olivier

Save Money. Live Better

Agenda

Retail Industry

Competitive Advantages and SWOT Analysis

International Expansion

Social Actions

What’s Next ?

The Retail Industry

• Mature market• 250 retailers operated sales of $4 trillion in 2010• Dynamic: 5% sales growth• Retailers start from home country and then go global

Five Porter’s forces analysis

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

Walmart: The World Retail Leader

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

Main competitors

VRIO AnalysisValuable Rare Inimitable Organization

supportCompetitive Advantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

Good Price positionning

VRIO AnalysisValuable Rare Inimitable Organization

supportCompetitive Advantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

Integration of the Supply Chain

VRIO AnalysisValuable Rare Inimitable Organization

supportCompetitive Advantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

VRIO AnalysisValuable Rare Inimitable Organization

SupportCompetitiveadvantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

Local adaptation & customer service

VRIO AnalysisValuable Rare Inimitable Organization

SupportCompetitiveadvantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

VRIO AnalysisValuable Rare Inimitable Organization

SupportCompetitiveadvantage

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes No No No

Yes No No No

Yes No No No

Yes Yes Yes Yes

Good price positionning

Supply chain Integration

Market Proximity

Local adaptation

Customer service

Diversification

HR Management

KFS factors

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

SWOT Analysis

Strengths Weaknesses• Strong financial resources• Powerful brand awareness• Sophisticated IT-based control

systems• Customer focused• Strong corporate culture

• Controversial HR policies• Anti-union reputation

Opportunities Threats• Serving new market segments• Increase online sales• Entering new international

markets• Crisis context

• New national competitors• Stricter regulations and trade

policies• Crisis context

Specialization of Processes

Retail Industry Competitive Advantages

International Expansion

Social Actions What’s Next ?

Purchase

Imports from low-cost countries

Distribution

Strong in-housedistribution centers

Sales

Strategic alliancesfor better coverage

IT activitiesR&D

Outsourcing in India

Entering new marketsA CAGE Analysis

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2

3

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6

Retail IndustryCompetitive Advantages

International Expansion Social Actions What’s Next ?

Varied modes of entry with mixed success

Acquisition of a local partner

Joint Venture

Greenfield operation

Retail Industry Competitive Advantages

International Expansion

Social Actions What’s Next ?

Organization and management

Aggregation

Standardized processesCentralized procurementIT-based HR monitoring

Walmart.wmv

Adaptation

Local managementFreedom in hiring

Centralization called into question

Retail Industry Competitive Advantages

International Expansion

Social Actions What’s Next ?

Walmart’s social duty

• 2.1M job opportunities worldwide• Shift US jobs overseas• CSR actions for better image

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

What’s Next ?

• Making sure of meeting their promises for 2015

• Build on new competitive advantages : improve customer experience, local taste adaptation

• Strenghten market presence in Africa and India

Retail Industry Competitive Advantages

International Expansion Social Actions What’s Next ?

Questions