1. 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

2. 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

3. 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 1986. In 1996, Wal-Mart opened its own Supercenter and Sam’s club in Shenzhen