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1BusinessSpotlight
2LearningGoalsToacknowledgeWal-Mart’smilestones;ToidentifyWal-Mart’skeytosuccessanditsinfluenceonWal-Mart’soperations;TolearnWal-Mart’scompetitiveadvantages.ToapplybusinessconceptstoacasestudyofWal-MartChinaVSCarrefourChina;Topresentbasedonthecasestudy.
3Warm-upWhatdoyouknowaboutWal-Mart?
4Milestones1960sWal-MartStorybegan1970sWal-Mart’sgrowth1980sSam’sFirstWholesaleClub1990sNation’sNo.1RetailerWorld’sLargestPrivateEmployer2000sMostAdmiredCompaniesCorporatePatriotismAward--Fortunemagazine
5DiscussionWhatdoyouthinkmakesWal-Mart’sSUCCESS?
6KeytoSuccessSamWalton’sPricingStrategy,
Heresthesimplelessonwelearned...sayIboughtanitemfor80cents.Ifoundthatbypricingitat$1.00,Icouldsellthreetimesmoreofitthanbypricingitat$1.20.Imightmakeonlyhalftheprofitperitem,butbecauseIwassellingthreetimesasmany,theoverallprofitwasmuchgreater.
7Effectofits“everyday,lowprice”:Wal-Marthastransformedthestandardretailmarketplace,makingitmoredifficultfortraditionalretailbusinessestocompeteagainsttheWal-Martsuperstoremodel.“Ithastrail-blazedthediscountbusinessandisanextremelyeffectivecompanyatdeliveringlowpricesconsistently,Wal-Marthasconsequentlyforcedotherretailerstolowertheirpricesaswell”.
8CompetitiveAdvantage1Question:Whatisthedivisionthatkeepsmillionsofproductsmovingtocustomerseachdayoftheyear?Oneoftheworld’slargestprivatedistributionoperationsItsownsatellitenetworksystem
91.Size--EachofWal-Mart’s40RegionalU.S.DistributionCentersisover1millionsquarefeet2.ConstantMovement--Wal-Mart’sdistributioncentersare24/7operationsthatkeep7,200tractorsand53,000trailersrollingaroundtheclockandacrossthecountry.
10Effectofits“InnovativeLogisticsOperations”:MoreProfitable:ImprovementofEf
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