WalMart Gets Its Mojo Back

1
Wal-Mart Gets Its Mojo Back

• Katie Donath
• Kennon Adkinson

2
Article Summary

• Wal-Mart hopes its renewed low-cost strategy
  will help beat stiff competition in the holidays.
• The company wants to attract budget-conscious
  consumers and attempt to repair its image.
• The strategy helped Wal-Mart report a stronger
  third quarter earning than was originally
  expected.
• Share price increased 7!

3
Previous Issues At A Glance

• Last year, Wal-Mart pushed higher priced items in
  a failed attempt to attract affluent customers.
• The company experienced criticism in price,
  health care, and employee discrimination.
• The broader economy was most reactant to the
  increase in home prices.

4
Current Concerns

• Wal-Mart gains most of its share in a slowing
  consumer environment.
• There is a large increase in customers concerns
  regarding slow economic growth and falling home
  prices.
• The National Retail Association predicts holiday
  sales will rise 4, the slowest pace in 3 years!

5
Wal-Mart International

• Employs associates in
• Argentina
• Brazil
• Canada
• China
• Costa Rica
• El Salvador
• Guatemala
• Honduras
• Japan
• Nicaragua
• Puerto Rico and the UK

6
Wal-Mart Todo Dia
A) Brazil B) Nicaragua C) Japan
7
Wal-Mart Maxi Bodegas
A) China B) Guatemala C) Mexico
8
Wal-Mart ASDA
A) El Salvador B) United Kingdom
C) Canada
9
International Implications

• Wal-Mart is experiencing saturation in the United
  States.
• This over-abundance of domestic stores has led to
  mixed international operations.
• Both domestically and internationally, the
  company is failing to receive revenue from an
  increase in sales.
• How can Wal-Mart increase revenue internationally?

10
International Expansion

• The addition of Wal-Mart retail stores across the
  globe would greatly improve the companys
  international revenue and wholesale operations.
• Global expansion can be achieved through a
  combination of building stores from the ground up
  and maintaining a stable, solid foundation with
  many promising areas for future development.

11
Joint Ventures

• In August 2007, Wal-Mart announced their
  agreement with Bharti enterprises to establish a
  joint venture for wholesale cash-and-carry and
  back-end supply chain management operations in
  India in 2008.
• The opening of this wholesale facility and the
  existing markets in 13 countries indicates that
  joint ventures is an efficient way to increase
  sales internationally.

12
Local Focus

• Local focus is a global strategy that can be
  implemented to more easily relate retailing
  concepts to each new country.
• This strategy is proven to be successful through
  community involvement and cultural adaptation.
• Wal-Mart would have competitive advantage on
  consumer needs, merchandise preferences, and
  local suppliers.

13
Conclusion

• Wal-Mart can achieve an increase in revenue from
  sales if they participate more in global
  expansion.
• Joint ventures is an effective solution to
  enhance development opportunities and improve
  local focus.
• By serving each hometown across the globe,
  Wal-Mart can financially advance.

14
Sources

• CNNMoney.com/Fortune
• Wal-Mart gets its mojo back
• The New York Times Online
• Wal-Mart Stores Inc.
• www.walmartstores.com
• International Operations

15
The End

• Any questions?