Wk 3 Fin. 371

Walmart International continues aggressive growth, totaling sales in both rising and matured markets. Net sales for fiscal 2011 grew 12 percent to $109 billion. Operating income increased to more than $5.6 billion, supported by more than 4,500 locations and almost 287 million square feet of selling space (Wal-Mart 2011 annual report, 2011).

Local

Wal-Mart’s growth developed from a mixture of equivalent sales and new stores. Wal-Mart’s opening of supercentres in new regions of Canada and changing the competitive environment in Brazil with a shift to EDLP (Every Day Low Prices) (Wal-Mart 2011 annual report, 2011). Wal-Mart’s expectations for growth in 2011 included 23 to 24 million new square feet in current markets, including significant investments in soft discount formats and supercenters in emerging markets (Wal-Mart 2011 annual report, 2011). The diversity of Wal-Mart’s formats allows entry into urban and rural areas and ensures they are relevant to the local community. In every market, Wal-Mart’s customers trust them to lead on price with their EDLP promise. Japan’s transition to EDLP and operational efficiencies contributed to increased profits for each of the past three years. In the United Kingdom, ASDA has gone even further, providing customers with the ability to check their basket price against competitors with a few simple clicks online through the ASDA price guarantee (Wal-Mart 2011 annual report, 2011).

Opportunity

Leveraging the local and global footprint and the scale of Walmart saves customers money so they can live better (Wal-Mart 2011 annual report, 2011). Global sourcing efforts drive merchandise quality and uniqueness. Operational cost efficiencies and various systems, processes and technologies allow Wal-Mart to lower the prices in their markets. The ability to choose between local and global sourcing provides Wal-Mart with a significant competitive advantage in their markets (Wal-Mart 2011 annual report, 2011).

Approach

Wal-Mart...