Executive Summary Financial Analysis External Analysis Internal Analysis Technology Human Capital Competitive Advantages Recommendations

External Analysis Wal-Mart – greedy for control Sophisticated ecosystem The growth feeds the ecosystem, the ecosystem powers the growth Market capitalism More than 30% of the entire market Customers vote Wal-Mart with wallets Suppliers vote with their products

External Analysis Consumers One stop shoppers 90% Americans live within 15 miles 93% US households shopped in Wal-Mart Save up to $900 a year Conflicted customer Suppliers Huge part of ecosystem Weak bargaining power Failure to comply Vlasic example Procter & Gamble and Gillette 16% of their business

External Analysis Competition Target, Home Depot, Costco Best Buy, Radio Shack Sears and Kmart merger Environment Destroying more jobs than creating Sustainability Eliminate 20 million metric tons of greenhouse gas (GHG) emissions from Wal- Mart's global supply chain by the end of Zero Waste More sustainable products, at more affordable prices

Internal Analysis: Technology  Bar Coding  Share info with in and across stores and to suppliers  Electric Data Interchange (EDI)  Forecasting, planning, replenishment, shipping  Retail Link  Required by suppliers – point of sale technology

Internal Analysis: Technology  Radio Frequency Identification (RFID)  Reduced shrinkage, inventory tracking, time saver  Online  Pushed boundaries  New products – music store, internet access

Internal Analysis: Human Capital  Criticisms  Low pay, heavy part time reliance  No unions  Bad evaluation procedures  Promote  Good working conditions

Competitive Advantage  Technology  Name  Fortune’s most admired company in 2003  Philanthropic efforts  International mergers and acquisitions  Smart at entering potential markets  Captures the culture and adapts (mostly)

Recommendations Keep Investing in Technology Employee incentives Don’t force culture too fast internationally