Walmart vs Tesco

Founded in 1962, by Sam Walton, Wal-Mart Stores, Inc. operates retail stores in various formats worldwide.

The Wal-Mart U.S. segment offers meat, produce, deli, bakery, dairy, frozen foods, floral, and dry grocery; health and beauty aids, household chemicals, paper goods, and pet supplies; electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts, and prepaid service; fabrics and crafts, stationery and books, automotive accessories, hardware and paint, horticulture and accessories, sporting goods, outdoor entertaining, and seasonal merchandise; apparel, shoes, and jewelry; pharmacy and optical services; and home furnishings, housewares, and small appliances through discount stores, supercenters, and neighborhood markets, as well as through

Its International segment includes various formats of retail stores and restaurants, including supermarkets, combination discount and grocery stores, supercenters, Sam’s Clubs, hypermarkets, cash-n-carry stores, department stores, and general merchandise stores. The company’s Sam’s Club segment offers merchandise, including hard-goods, soft-goods, and selected private-label items under the MEMBER’S MARK, BAKERS & CHEFS, and SAM’S CLUB brands through warehouse membership clubs in the United States, as well as through Tesco

Tesco’s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. It was established in 1924.Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people. is recognized as the world’s largest online grocer, with a customer base of little less than1 million and more than 250,000 orders a week. As of March 2008, Tesco have a store in every postcode of the UK.

Culture of Organization

MissionThe mission for Wal-Mart is

The mission for Tesco is to create value for customers to earn their life time loyalty. Vision The vision for Wal-Mart is

The vision for Tesco is “We talk about every little helps a lot, but it’s not just the marketing slogan, it represents everything we stand for our people and customers.”

Core Values for Wal-Mart

Since Sam Walton opened the first Walmart in 1962, its culture has rested on three basic beliefs. * 1. Respect for the Individual* 2. Service to our Customers* 3. Striving for ExcellenceRespect for the IndividualWal-Mart believes in respecting the individual .We’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect. Service to our customers

Our customers are the reason we’re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers’ expectations. That’s when we’re at our very best. Striving for Excellence

We’re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product’s quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers, and for our communities. Mission


Core Values for TescoSome of the core values are as followed:1. Environment friendly productsa.2. Customer focused strategyb. Club card – a loyalty scheme (1995).3. Quality products at low pricec.4. Improved Labelingd.5. Self-Checkoute.

Industry Analysis

StrengthsWeaknessOpportunitiesThreatsPorter’s Five Forces for Wal-Mart

Porter’s Five Forces for TescoThreats of New EntrantsCompetitive Rivalry is considered a high threat and are people like Amazon and Asda including the other supermarket and non-food retailers who are involved in the same concept. If consumers see little difference between the product and that of the competition then they will tend to choose on price. Bargaining power of Suppliers.

There is little threat as often large supermarkets dictate the price they pay to the supplier. If the supplier does not agree to Tesco’s price then the supplier will be left with no retailer. Threats of New Entrants-

Tesco, Asda, Sainsbury and other supermarket chains put up considerable barriers to entry. Anyone starting up a new supermarket chain has barriers imposed on them, implicitly or explicitly, by the existing supermarkets. Bargaining Power of Buyer-

Buyer power also acts to force prices down. If beans are too expensive in Tesco, buyers will exercise their power and move to Sainsbury. Tesco including other supermarkets have a disciplined approach to prices setting .This approach stops them from destroying each other in a profit war. Threat of Substitute Products-

Tesco competition from other supermarkets which can provide substitute goods drives the prices of both companies down; therefore substitute is seen as a Low threat.

Financial Analysis

Balance Sheet

Income Statement


Strategic Approaches to StoresWal-Mart

TescoSupply ChainProductPricingPromotionPlacement