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Walmart Case / Strategic Management and Competitive Advantages

Yu Ra Kim, Je Heon Kim, Hee Kyung Kim, Won Jin Park, Eun Byul Jo, Hyun Jo, Tuure

희경 김

on 9 October 2014

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Transcript of Walmart Case / Strategic Management and Competitive Advantages

Reducing cost of sales by 2~3%
Receiving an order within 48hours
Wal-Mart Stores, Inc., in 2010
12093971 Jae Heon Kim
12104912 Yu Ra Kim
12104736 Eun Byul Cho
12104737 Hyun Cho
12124934 Hee Kyung Kim
12124935 Won Jin Park
12144578 Tuure

Walmart Introduction
the beginning of Walmart
internationally expanded Walmart
in small and medium size towns
Locational advantages
Every Day Low Price
did Sam Walton choose small towns?
customers thought of Wal-mart,
they should think of
low price and satisfaction."
Managing Inventory
Investment in Information Technology
UPC : Universal Product Codes
EDI : Electronic Data Interchange
Registers & Computers of Discounters
Supplier's Computers
sales & inventory data
RFID : Radio Frequency Identification
Skill in using information
POS(Point of Sale) Scanning
Managing Inventory
Potentially significant marketing tool
Micro Market
Buying Power with Suppliers
Distribution Center
85% WalMart vs 50% Kmart
Kmart as Wal-Mart's largest competitor
Market Leader 'Kmart'
229 stores
1891 stores
in 1979
Imitation of EDLP
Initial Strategy
Probiding brand products in good quality
Selling the goods at low price
Failure to Imitate

1. Difficulty in keeping shelves
stocked in sale item

2. Wal-Mart sold the key items
of Kmart at same price
1. Locational advantages
in small and medium size towns
Communication & Flexibility
Lean management structure
Assessment of Target
Yearly Revenue Comparison
Source : 10-K for each retailer
Wal-mart was


in the beginning

What is cross docking?
Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time.

Distribution / Logistics

a regional retailer little known outside the south
Key items
To attract more customers by advertising key items at sharply lower price than price of competitors
As wal-mart grew up more and more,
eventually,the market leader changed
k-mart to wal-mart
11,000 stroes / 27 countries

2,200,000 employees

245,000,000 weekly customers
"Gurantee Customer satisfaction"
"Everyday low price"
1. Enlarging small stores
Plans 270-300
earlier plans 120-150
2.Utilizing online market
1. WalMart Introduction

2. Competitive Advantages

locational advantages and EDLP
Managing Inventory
Distribution and Logistics

Kmart as Wal-Mart's largest competitor
Assessment of Target
Thank you
Full transcript