Wal-Mart's overseas business expansion has been increasingly intensive. In 1995, Wal- Mart again opened its shopping nets in Argentina and Brazil. Likewise in Asia by forming a joint venture with a local retail company in 1998, two years after Wal-Mart failed to enter the Korean retail market due to intense competition among retail companies.
In 1998, Wal-Mart's first largest sales center was launched and opened to the public which later became known as a conventional store in many regions and countries around the world.
Even when it entered the UK in 1999, walmart account management was extraordinary enough to quickly dominate the market by acquiring ASDA Group Plc which owns 229 shopping centers. slowly but surely, with outstanding business performance, Wal-Mart continues to crawl into a truly octopus company. Even in 2003-2004, successively Wal-Mart occupied the top position of all companies in the US which on average has a wide market throughout the world. Recognition of its dominance continues to flow from various institutions, even its own competitors. In 2005, for example, the rating magazine Fortune ranked Wal-Mart in the fifth position of all the leading global companies.
Walton's ideas and efforts made Wal-Mart one of the companies that have succeeded in changing the global business world. The idea of retail stores, discount stores and superstores that he initiated has changed the world of shopping and consumers. Today the company employs more than 2.1 partners and direct employees. Wal-Mart stores serve more than 176 million consumers worldwide per year.
WALMART VISION AND MISSION
Sam Walton's vision for Walmart is to provide value for customers by implementing the EDLP (Every Day Low Price) strategy of providing high quality products with well-known brands but at the lowest prices, and staying within a global company that directs its development to the world. Walmart's mission is more oriented towards customers and strict members. Even though Walmart exists in various parts of the country, it still enforces the same standards and respect for every customer.
Today's retail businesses have to work harder to attract consumers in the face of relentless competition from e-commerce platforms. Wal-Mart Stores Inc. is no exception. The company is considering new strategies to build strength online and compete with Amazon. In this e-commerce sector , Wal-Mart lags far behind Amazon. Amazon is a leader in online sales thanks to its network of more than 40 warehouses in the United States, and a number of robots that help speed orders to shoppers' homes very efficiently. Even so, Wal-Mart doesn't want to copy Amazon's business model out of concern supply to his shop will be disrupted.
"Wal-Mart was forced to find a solution on its own because it still hasn't figured out how to get all of its products into the hands of online shoppers economically," the executive said. This is a valuable acknowledgment for Wal-Mart, which is one of the world's largest retailers because of the efficiency of its supply network.Despite all the promises to be an online force since exploring e-commerce a decade ago, Wal-Mart was still far below Amazon. Last year, Amazon managed to record a total online sales of US $ 61 billion. While Wal-Mart only managed to book US $ 7.7 billion.
Wal-Mart promises to provide solutions to online problems with a distribution network that shares investment information in 4,000 stores and 158 warehouses. Wal-Mart will also build e-commerce distribution centers this year but declined to say how many.
WALMART BUSINESS STRATEGY
a. Wal-Mart. Distribution Strategy According to Byrnes, (2003: 1) The key to providing good goods, consistent service and affordable prices is differentiation. Differentiation here is the process by which companies define different service policies, such as service intervals, delivery times, for different groups. Companies must always be able to keep their promises, but each customer gets a different set of promises according to their segment. Service differentiation is also good for buyers. And in this case, Wal-Mart places differentiation in distribution channels.
1. Dominate the retail market all over the place. Wal-Mart is retail that always applies discounts and always tries to sell its products at the lowest possible price. The other side of this strategy is implementing a compensation system for each store.
Each store was encouraged to compete with other stores in terms of the number of consumers until finally Wal-Mart stores gained dominance in the local retail market in the area.
"A characteristic of their promotion is the use of shops and their own employees in advertising."
2. Growing by expanding both in the US and internationally. Today, Wal-Mart employs more than 1.3 million workers and has more than 4,000 stores worldwide. This data clearly shows the dominance and power of Wal-Mart in expanding.
Wal-Mart is indeed very aggressive in expanding. The ultimate expansion strategy is entering a country, taking over or buying national retailers.Once purchased, Wal-Mart turned them into Wal-Mart stores. By taking over local or national retail companies, Wal-Mart gains the advantage of losing major competitors, and gaining strategic locations as well as employees. This is an efficient way of using funds.
3. Creating a good impression and customer satisfaction of the Wal-Mart brand. This retailer wants consumers to get the image that it is the best (cheap). How to communicate through television and print media. A characteristic of their promotion is the use of shops and their own employees in advertising.
3. The fourth strategy is to enter new retail deposit sectors. walmart listing expanded into the pharmaceutical and automotive sectors. However, after years of being accused of being the cause of the disappearance of small traders, Wal-Mart recently adopted a new strategy, namely helping local merchants to be able to compete.
a. Cost leadership strategy
b. Strategy in Information Technology (IT)
Wal-Mart builds a sophisticated satellite network that connects the point of sale in all of its stores. The network is intended for managers and sales people about the latest sales and inventory status information. Wal-Mart also streamlines its information system operations to offer lower cost and better quality products and services, this is done to differentiate Wal-Mart from its competitors.
Wal-Mart also uses a cross clocking system, which is a distribution system of goods from suppliers sent to Wal-Mart warehouses for the selection process, repackaging and then being distributed directly to Wal- Mart stores without being stored for too long, so storage costs will be low.