AdvancedDIPLOMAA 221BSSBusiness ManagementCompetitors analysis for Walmart for the year 2009-2010(Lecturer : James)Name of Student : Yang Hyuk JunStudent No : 08107019Date of Submission : 02/Oct/09Executive SummaryWalmart projected “Green mart” which is new SBU ( Strategic Business Unit ) to propose a marketing plan for 2010 . The Green mart’s ultimate aim is to achieve an increase 7% of total sales revenue of Walmart and grows market share by 3% through launching 20 Green marts and operating them in 2010 .To achieve objectives , Green mart focused on vision that are composed of diversity , Freshness and Convenience . Walmart is the largest retail grocery store in the world that has enormous buyer power . According to the Goldman Sachs company reports of retail sales on January 2009 , Walmart’s total revenue was 21.10 billion, with almost 50% higher sales than its 7 closest competitors combined ( Target , Costco etc) . In order to improve existing brand recognition and low quality perc991, first international market was opened in Mexico city followed by China in 1996 ( first entered to Asian market) , Germany and Korea in 1998 ( first entered to Europe market ) , respectively .In 2006 , the company served customers more than 176 million weekly around the world that recorded net sales of 345 billion . The total sales of 2008 in Walmart was 234.5 billion , in spite of having international market more than 3000 , they keep expanding globally .In 2009 , Walmart entered India through joint venture with Bharti Enterprises that nobody think that is possible . fluctuated dramatically from 12.8% ()History Timeline < http://walmartstores.com/AboutUs/7603.aspx>Wal - mart 2009 annual report accessed on 11th of September 2009Financial overviewWith regard to Net sales revenue , Walmart’s revenue increased slightly until 2009 form 2007 as much as 8.6% ( US $30,168 m ) , 7.2% ( US $27,131 m ) in 2009. Concerning growth rate of Gross profit , recorded almost identical figures betwe Industry analysis - Porter’s 5 Forces -5.1 Competition in the retail industryThe main threat of Walmart in retail industry that can be huge hypermarkets , department stores , discount stores such as Target , J.C.Penny ,Sears and also face competition from wholesaler like Costco and BJ,s .However , Walmart is the largest retail company in USA which has cost leadership strategy . Moreover , Walmart has adopted efficient logistics system ( Cross docking ) , advanced information system ( RFID , VSAT ) to keep the lowest price in the industry .Thereby , Walmart has not that pressure compared with all the competitors in the industry that means nobody can be actual competitors with Walmart .5.2 Threat of new entrantsActually , the possibility is very low that new entrants settle down in grocery & retailer industry in USA . The entrants face to beat price by existing mammoth size markets that are not only price competitiveness but also brand loyalty , high cost of entry , economy of scale , h)Thirdly , it is Private Fleet System that has 2000 trucks so that deliver to first line of production within 48 hours and much higher transport rate than that of other competitors with roughly 80% and 50~65% respectively.6.1.4 Intellectual Resources(1) Differentiated Information TechnologyWalmart built up differentiated information technology to share information with suppliers and reduce cost . By utilizing RFID (Radio Frequency Identification) , they can control inventory efficiently along with avoiding out-out-stock (Bullwhip effect) and expects to reduce its distribution cost by some 6~7% from existing 10% of total revenue by WSN (Walmart Satellite Network) as well . In addition , as introduced intelligent distribution network such as WSN (by using GPS) , the company could have a distinctive advantage that reduce communication cost as much as 20~30% by high speed of sales data transmission .School Studies RFID's Effect on Wal-Mart , RFID journal , By Jonathan CollinsWhy Wal - marttomer) to diminished new system (manufacturer-Walmart-customer).The remarkable main competence of Walmart in value chain , the firm has actualized maximizing margin by inbound logistic ( Cross docking , Private Feet , Distribution center ) , operation( low inventory , controlling by satellite ) and outbound logistics ( VMI , RFID ) .Walmart Case Analysis...Value Chain8.0 Strategic issueAs for the issues of Walmart , there are a certain issues in Walmart that are as follows ,Brand name recognitionUnfamiliar, Unaware2. Low quality perceptionLow-priced, EDLP3. Supplier selectionWho to work with?4. Location selection9.0 RecommendationAs mentioned above, the slogan of Walmat is EDLP that reminds customer of “ cheap ” image at the same time “cheap quality” image due to low price as well as having with unfamiliar , unaware brand name recognition . The firm failed to penetrate in Korea , German successfully , because of controlling supplier . Regarding Green mart , the firm need another accesst