Om Final Project Walmart

8/8/2019 Om Final Project Walmart

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WAL-MARTTHE WORLD BIGGEST RETAILER

SUSTAINING CORE COMPETENCE AND COMPETITIVE ADVANTAGE

Presented byPolawat and Mostafa


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COMPANY ( )REVENUES in $ millions

Exxon Mobile , .444 851 0

-Wal Mart Stores , .405 607 0

Chevron , .263 159 0

ConocoPhillips , .230 764 0

General Electric , .183 204 0

2009 Global Fortune


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RATAIL INDUSTRY STURCTURE


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PROCUREMENT

costsed Relationship with suppliers

DISTRIBUTION

-Reduce inventory cost-Efficient distribution (Cross-Docking)

Organizational Culture:Low cost business model, Sundown rule, 10 feetattitude

InformationTechnologySystem

Satellite, Radio Frequency Identification Scanned(RFID), Electronic Data Interchange (EDI)

MARKETING

AND SALES

-A fewpromotion

CORE COMPETENCE & COMPETITIVE ADVANTAGE

CORECOMPETENCE

-

-Capabilities to

reduce costacross thevalue chain-

-Organization

Culture

SUPPORTACTIV

ITIES

PRIMARYACTIV

ITIES


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OUTSOURCING FOR LOWER COST:

Wal-Mart pressures manufacturers tooutsourcing jobs

More than 70% of Wal-Mart merchandise has aChinese component

Wal-Mart is the global leader of outsourcing


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Wal-Mart is facing stiffer competition everywhere. Indiscounting retailing area, many of its competitors

Kmart Sears and JC pennyare being revitalized bynew management. In warehouse clubs, its Sams clubsran a poor second to Costco.

Wal-Mart attracts criticism of environmentalists, anti-globalization activists, womens and childrens rightsadvocates, small business representatives and agrowing number of legislators of varying political hues.

How can Wal-Mart sustain its competitive advantageand core competence in the US and the world market?


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Revenue

Profit

Marketing Powerover suppliers

MarketingPower overlabor

MarketingPower overcustomers

Outsourcing

Investment inGreenTechnology

Investment inprocessimprovement

CSR Issue

Unit Cost

Low Price

Brand Image

Sales

Consumption

ResourceDepreciation

CapitalProductivity

+

+

+

+++++

+

+

++

+

-

---

--

+

-


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BRAND IMAGE


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Operations

Strategy

The Operation's

Strategic Objectives

The Operation's

Competitive Role and

Position

Design

Planning and

COntrol

Improvement

Operation

Strategy

Operation

Manageme

nt

InputResources

OutputProducts and

Services

Customers

WAL-MART GOING GREEN

To build a moreenvironmentally andsocially responsibleglobal supply chain

-To be supplied by 100% renewable energy-To create zero waste-To sell products that sustain resources andenvironment


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Operation Planning and Controlling 1. Increase fuel efficiencyin Wal-Marts truck fleet by 25 percent over three years and

doubling it within 10 years

2. Reduce greenhouse gasesby 20 percent in 7 years

3. Reduce energy use at storesby 30 percent in 7 years

4. Cut solid waste from U.S. stores and Sams Clubs by 25 percent in three years.

5. Buying diesel-electric and refrigerated trucks with a power unit that could keep cargo coldwithout the engine running, saving nearly $75 million in fuel costs and eliminating anestimated 400,000 tons of CO2 pollution in one year alone

6. Making a five-year verbal commitment to buy onlyorganically grown cotton from farmers,and to buy alternate crops those farmers need to grow between cotton harvests.

7. Promising by 2011 to onlycarry seafood certified wild by the Marine StewardshipCouncil, a group dedicated to preventing the depletion of ocean life from overfishing.

8. Buying (and selling) 12 weeks' worth ofRestrictions on Hazardous Substances (RoHS)

-compliant computersfrom Toshiba


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IN THE WORLD MARKET

Wal-Marts low price strategy was not successfulin German and Korean Markets because of :

-Differences in consumption behavior -High cost to invest in IT system -Differences in Organization Culture

Wal-Mart should use focused-market strategy inthe world market.


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Om Final Project Walmart

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