Fall 2000MGTO321 (L1 & L2) -- Dr. JT Li1 Lecture #12: (Class Discussion of Wal-Mart Case Reading: 1. Case: Wal-Mart Stores (on reserve) 2. Case summary and key issues (on web) 3. Will Wal-Mart.com Steamroll the E-tailers? (on reserve, call number: MGTO321.13) 4. SAM would be Proud (on reserve, call number: MGTO321.12) Key activities of the class 1. Group presentations of the case (soft copy due) 2. Class case discussion (summary, update, lessons learnt) 3. Written group reports due

Fall 2000MGTO321 (L1 & L2) -- Dr. JT Li2 Wal-Mart Business Model Traditional ModelWal Mart ModelE-commerce Distributors Retailers Consumers Manufacturers Wholesalers X X Manufacturers Internet/ e-Commerce Wal Mart Consumers

Fall 2000MGTO321 (L1 & L2) -- Dr. JT Li3 Wal-Mart in Hong Kong/China -- Update October 1994, entered a joint venture with C.P. Group of Thailand, to build 3 Value Clubs in HK. CP Group, with over 60 JVs in China, was expected to contribute by identifying“locations, to build government relation.” -- Rob Walton, Chairman of Wal-Mart However, disputes over management led Wal-Mart to dissolve the partnership with CP Group in In 1996, Wal-Mart opened its own Supercenter and Sam’s club in Shenzhen