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8/8/2019 WALMART SUJIT
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TAZKIATAZKIA SANJANASANJANA TISHATISHA
093 0236 020093 0236 020
SADIASADIA AFRINAFRIN
081 092 030081 092 030
MM FAZLAYFAZLAY RABBIRABBI081 409 030081 409 030
LUBANALUBANA NUSRATNUSRAT
081 806 030081 806 030
ALAL AMINAMIN REDWANURREDWANUR RAHMANRAHMAN
081 162 030081 162 030
NAFEESNAFEES KHANKHAN
073 483 030073 483 030
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SloganSlogan
Starting slogan:Always Low Prices
Newslogan: SaveMoney. LiveBetter. (from 2 00 7 )
MissionMission
StatementStatement:
To giveordinary folkthe chance tobuy the samething as richpeople
VisionVision
StatemenStatemen
tt:
To becomethe
worldwideleader inretailing
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WalWal--mart & the COMPETITIONmart & the COMPETITION
To sustain competitive
advantage, a firm must ensurethat its competition finds it hard
to imitate its chosen position.
To sustain competitive
advantage, a firm must ensurethat its competition finds it hard
to imitate its chosen position.
COMPANY SALES (MIL)
FY2006
INDUSTRY AVG. 39,992
Wal-mart 312,427
TARGET 55,363
KOHLS 14,247
DOLLAR
GENERAL
8,941
BIG LOTS 4,534
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Outputs
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STRATEGYSTRATEGY
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Operation StrategyOperation StrategyOperation StrategyOperation Strategy
Capturing market share with everyday low pricestrategy.
the process of creative destruction.
Responding competitors strategy. (opened Pennies-n-Cents stores in against dollar stores).
Cultural adaptation.
Training employees because people are key to Wal-Mart's business
Buy at less to sell at less.
Withdrawal strategy.
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Competitive StrategyCompetitive Strategy
Different shop design for each demographic groups.
All product in one store.
Competence in use of information technology for
logistics system.
Highest customer satisfaction
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ProductivityProductivity
Creating more than 210,000 jobs in the U.S.
Saves working families more than US $2,500per year.
Discounting on food alone boosts the welfare
of American shoppers by approx. $ 50 billionper year.
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Industry Environment - Porter's five
forces of competition
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1.Rivalry of Existing Competitors:
Wal-Mart has a strong competitive advantage against
its competitors Kmart and Target. Rivalry in this industry is not as strong for thecompetitors compared to Wal-Mart.
2.Barriers2.Barriers to Entryto Entry::
High because it is hard to form a large organizationthat will be competitive at the same size as Wal-Martwith such low prices.
This industry has high barriers because it is tooexpensive for new firms to enter and to be competitive.
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3.POWER of Buyers:
Weak because basically the prices are low fromthe beginning so there would not be any potential
for buyers to bargain with.
4.POWER of Supplies:
Weak because Wal-Mart uses its own distribution
centers that are located close to its stores.
Wal-Mart is also far and away the biggestcustomer of virtually all of its suppliers. It's scale of
operation allowed it to bargain...
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5. Substitutes:
Medium because it depends on where you live andwhat type of Wal-Mart stores are closer to you.
Substitutes would be going to another grocerystore, a toy store, a hardware store; basically going
to specialty stores instead of going to one store that
has everything in one, as a Wal-Mart can.
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Wal-Mart product and service design
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Product cost, product delivery-response
time, product variety, product quality
Wal-marts
productcost?
Low
Wal-martsproduct
delivery-responsetime?
Low
Wal-marts
productvariety?High
Wal-martsproduct
quality?Low -Medium
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Introduced new Layout to improvesCustomer Experience with fasterservice.
Always offer unbeatable Prices.
Layout of the stores will save customerstime as they shop for everyday necessities.
Its Service layout create an open shoppingenvironment that helps customers find what
they are looking for quickly.
Service LayoutService Layout
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Wal-Mart Shelf management
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Capacity Planning for Wal-Mart
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Capacity Planning
o The process of determining the production capacityneeded by an organization to meet changing
demands for its products.
o The process of determining product quantity needed
by a firm to meet the demand of consumers.
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Essential elements ofCapacity
Planning
Facility
Product & ServiceHuman Resource
Among all elements for capacity planning, followings
are essential for Wal-Mart:
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Facility Factor
Shop location
Shop layout
Shop Si z e
Warehouse Si z e
Warehouse layout
In USA
Operating in 5 0 states
4,3 0 0 facilities for all sort ofoutlets
Around the globe
14 countries
4 0 81 stores
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Facility Factor
Shop location
Shop layout
Shop Size
Warehouse Size
Warehouse layout
New layout for customer experience.
Shop layouts has been classified based on Wal-Mart's operation
Wal-Mart supercentersa full-service supermarket
Discount storesdiscount department stores
Neighborhood Markets Shop for daily necessary goods
Sams Club warehousesmembership based stores
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Facility Factor
Shop location
Shop layout
Shop Size
Warehouse Size
Warehouse layout
Wal-Mart U.S. 602.9 million sft.Wal-Mart international 269.9 million sftSams club 79.4 million sftTotal Size 952.2 million sft.
Average size of each outletWal-Mart supercenters
Varies between 51,000 sft to 51,000 sft.Average size 102,000 sft.
Discount storesVarying from 98,000 to 261,000 square with anaverage of 197,000 sft.
Neighborhood MarketsAverages about 42,000 sft.
Sams Club warehousesAverage club size of 133,000 sft.
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Facility Factor
Shop location
Shop layout
Shop Size
Warehouse Size
Warehouse layout
Single large warehouse for a single
state.
Covers all stores of a state
Also has warehouse for Sams clubwhich is a membership based store.
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Facility Factor
Shop location
Shop layout
Shop Si z e
Warehouse Si z e
Warehouse layout
Data warehousing layout
A networked connection
with store inventory with
suppliers for inventorysupply when needed.
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Product and Service Factor
Price
Sales
Suppliers
Every day low price.
Lower price than competitors (price
leadership).
Lower price due lower operational cost.
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Product and Service Factor
Price
Sales
Suppliers
NetSales of walmart in 2009-2010
Wal-Mart U.S. $2 58.2 billion
Sams Club $ 46 .7 billion
Wal-Mart International $ 100.1 billion
Worldwide Total $ 405 billion
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Product and Service Factor
Price
Sales
Suppliers
Partners with more than 2,5 0 0 minority-and
women-owned business suppliers.
Networked communication & Just In Time .
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Human Resource Factor
Number ofemployees
Age, Genderand sexualorientation
Skill
Wages
2.1 million employees all over the world
1.4 million employees only in U.S.
Largest privet employers in US, Mexico & Canada.
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Human Factor
Number ofemployees
Age, Genderand sexualorientation
Skill
Wages
869000 women working in Wal-Mart.
More than 430,000 employees are 50 and
over.
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Human Factor
Number ofemployees
Age, Genderand sexualorientation
Skill
Wages
Both Skilled and low skilled employees.
Employs senior citizens who needs supplemental
income.
Employs Students who needs skill andexperiences.
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Human Factor
Number of
employees
Age, Gender
and sexual
orientation
Skill
Wages
Hourly wage rate.
Wage of $ 1 2 per hour for semi skilled
employees.
Higher wage rate for skilled employees and
in urban outlets.
Bonus on performance.
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Reliability
Suppliers ViewSuppliers View
Wal-Mart wants to be first Wal-Mart is an innovator'sparadise
Wal-Mart has the space
Wal-Mart is great at executing
Wal-Mart has scale The science behind shelf
placement
Customers ViewCustomers View
No "buyingcommittees" andnobodymicromanagesbuyers
Low price
Number ofOutlets
Redundancy
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SUPPLY CHAIN MANAGEMENT
Supply chain management involves
the flows of material, information
and finance in a network consisting of
customers, suppliers, manufacturers,and distributors
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THE REASON!
Efficient supply chain
Deals with suppliers for e.g P & G
Service Differentiation- different deals withdifferent customers.
Sets different service policies, such as serviceintervals, or delivery times, for different groups ofaccounts and often products.
key to providing excellent, consistent service at a
reasonable cost
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Just in time (JIT)
Lowers holding cost
Lowers ordering cost Wal-Mart has made ordering small batches with
greater frequency a profitable reality.
R educes safety stock and EO Q R educes lead time
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RFID
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RFID
Radio frequency identification
Keep track of goods at any point in time, and alsotells you where it is.
Eliminates physical counting of inventory
Is in line wit JIT. As soon as inventory levels go down, Walmart can
re-order.
Implemented in 2 0 0 5.
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Why RFID ?
Reduce the possibility of inventory shrinkage and out-of-stock
situation.
Improve fulfillment rates.
Improve the customer service.
Reduce inventory and labor cost.
Eliminate many manual process and improve the operation
efficiency.
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Get employees from places where labor is
cheap.
Increasing wage rate for employees
Keeping high quality products.
Should focus on service along with lower price.
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Thank You !!!
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