walmart strategy team victoria
DESCRIPTION
TRANSCRIPT
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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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