walmart sujit

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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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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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


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


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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walmart sujit

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