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1、The WAL- MART storyBy :Mahavir Jain M.B.A (MKTG.)2005-2007Faculty of Management StudiesUdaipur (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

2、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 m

3、illion people working Sales for 2006 estimated to be $ 1billion per day.YEAR - 2001 Fortune d 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 - 2002Rated as the no.1 company on the

4、 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 empl

5、oyees.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. MARGIN ROLE OF TECHNOLOGY Implemented a satellite net work system. Pro

6、cess like ordering ,shipping ,communications and logistics were automated. Store level data sales were collected ,analyzed and transmitted electronically on a real time basis. MARGINOn November.27 2006,bharti enterprises and WAL-MART entered into joint venture of equal partnership to function in the

7、 cash and carry format.By Aug.2007 - first store in India.Present status :Recruitment Negotiations with potential customers Market surveys are on. MARGINBharti In the market with old players like Pantaloons,Rahejas and RPG and new players like Reliance ,Aditya Birla group.Partnering with Wal-Mart wi

8、ll give other players a run for their money.WAL-MARTPartnering with bharti will give Wal Mart access to the 8th largest retail market in the world valued at $320 billion. MARGINAdvantage bharti Huge ground network in the country already through its telecom business Knows the Indian landscape and und

9、erstands the demographics in this country. Knowledge of where to get the real estate for the business. MARGINAdvantage Wal-Mart Companies innovative information technology . Highly efficient service channel management which makes it possible to buy directly from the producers. Company has tremendous

10、 sourcing efficiencies which will bring economies of scale from day one.MARKETPLAYERS MARGINRELIANCE 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 serv

11、ices.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.PANTALOONSBIG BAZAAR are rapidly expanding and are planning to open 100 stores by dec.07DONT FEAR INDIA ! MARGINFear of Wal-MartNO,NO WAL Mart is n

12、ot invincibleLast 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.In South korea Had to sell all 16 stores. MARGINReasons Local German stores Aldi and Lidl able to deliver good quality grocery at affordable prices.Open

13、ed all stores in suburbs customers were very reluctant to drive that far.Unable to understand the customer insights well MARGINIndia 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 e

14、thnicities, cultures and habits.Geographical challenges :India has 3 times more people then America Population density 11 times that of America. MARGINLook at China The country has nearly 200 stores owned by Wal Mart ,Tesco and Carrefour yet domestic retailers are strong.The big Indian plansReliance

15、 intends opening more stores (around 6,000)In 5 years than Wal Mart has opened in 44 years . MARGINAdvantage retailBOOST EMPLOYMENTAmerica has more Wal Mart employees then high school teachers. In China employing 150,000 people in next 5 Years.CREATION OF WEALTHThey pay producers more and charge con

16、sumers less.Resulting savings generate employment when they are spent on other goods and services. MARGINFuture of mom and pop storesKirana stores offers services that are unmatched by organized retailers. Credit Personal suggestions Good relationships. Home delivery The U.S.P Their instant response to changing consumer needs. MARGINWILL WAL-MART SUCCEED IN INDIA ?IT W

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