Project 2: Corporate Research Walmart in Ireland Alexander Khambir Darina Pchelnikova Ernestas Svoba Jibek Nurdin

WALMART: Founded: in 1962 by Sam Walter. Now the family own 40% of stock Mission statement: Saving people money so they can live better Slogan :Save money, live better 4 Values: Service to customers, Respect for the individual, Strive for excellence, Acting with integrity

BUSINESS OVERVIEW: Segments: Walmart U.S., Walmart International, and Sam's Club

BUSINESS OVERVIEW:

CUSTOMER PROFILE: Age: from 14 to 80 years old Income: 3 target groups - with income less than 10,000 per year - middle group: with income from minimum wage 16,000 to 35,000 per year - wealthier customers with income from 35,000 to 50,000 per year Gender: both masculine and feminine genders Marital status: married Parental status: most likely has at least one child Professional habits: low-skilled job which do not require high level of education

CUSTOMER NEEDS: Buying habits: high volumes preferably each week Interests: leisure activities in free time like movies, reading books, etc.; spending time with the family; house renovations and landscaping, etc. Lifestyle: try to acquire the same privileges as middle class; tend to socialise with their families and friends, show interest in politics, and actively participate in life of their children.

KEY DIFFERENTIATION ADVANTAGES: distribution capabilities (inventory management system) costs saving strategy (every day low prices) partnership with suppliers and contractors (big power over suppliers) advantage of experience of market entry in other countries

MACRO-ENVIRONMENT POLITICAL FACTORS : Taxation and inflation Safety regulations Political stability Legal working requirements Price regulations Trade policies

ECONOMIC FACTORS: Economic transformation from an agriculture focused economy to a knowledge economy. Unemployment 11.9% Gross National Income on average $41,140 Currency is Euro

SOCIAL FACTORS: Languages: English and Irish Gaeilge International associations: United Nations Organization for Security and Cooperation in Europe UNICEF Free education: primary, secondary, third level education Religion – Roman Catholic 86% Demographics: majority of people are between 45 – 65 years old

TECHNOLOGICAL FACTORS: Great infrastructure level Technological country, however agriculture still plays an important role in the Irish economy Businesses focuses more on technological applications 77% of Irelands population was using the Internet

ENVIRONMENTAL FACTORS: Waste management Companies are required to acknowledge Social Responsibility Climate change

LEGAL FACTORS: Restrictive practices (Groceries Order) Many retail associations opposed the restrictive (Groceries Order) Health and safety regulations Environmental laws

COMPETITORS ASSESSMENT: Aldi (7.4% market share) Dunnes Stores (22.1%) Tesco Ireland (26.2%) ArnottsMusgrave Group BWG FoodsPenneys Dunnes StoresTesco Ireland AldiLidl

SUPPLIERS ASSESSMNET: The power of suppliers diminishes near major retailers The ability to source cheap products abroad gives the retailers' a huge advantage Potential for backward vertical integration

BARRIERS: Economy of scale Limit pricing Loyalty schemes Distributor agreements Set up costs Positioning

RETAILERS: Low possibility of alliance Local management team and workforce Building vs buying stores Expectations: Short run Survive Medium run Penetration Long run Leadership

CONCLUSION: Time question of entering Waiting consumers Well developed country No impossible barrier Enough strength to compete

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