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 !""! '!"!
ͻ Starting slogan: ##$%$ #&
# ##$%$
Always Low Prices ͻ To give #&
ͻ New ordinary folk ͻ To become
slogan: Save the chance to the
Money. Live buy the same worldwide
Better. (from 2 0 thing as rich leader in
0 7 ) people retailing
 O


  
 

È (   )*


ëNDUSTRY AVG. 39,992

]     Wal-mart 312,427

       TARGET 55,363
    KOHL͛S 14,247
    DOLLAR 8,941
GENERAL
BëG LOTS 4,534
Outputs
w
 
 Operation Strategy

] È+#,-! %-.$#"/-$0!#/1$2$-3430+-!5$6

"#-#$37
] 1#/$+-5$""85-$#!2$4$"#-,5#! 67
] $"+ 4! 5%+$#!#-""#-#$37)+$ $41($ !$"9 9
È$ #"6"#-$"! ! "#4-"#-$"*7
] È,#,-4+##! 7
] m-! ! $%+3$$":$5,"$+$+$-$.$3#9
-#;":,"! $""
] ,3#$""#"$#$""7
] !#/4-0"#-#$37
 Èompetitive Strategy

] Different shop design for each demographic groups.

] All product in one store.
] Èompetence in use of information technology for
logistics system.
] Highest customer satisfaction
 Productivity

] Èreating more than 210,000 jobs in the U.S.

] Saves working families more than US $2,500
per year.
] Discounting on food alone boosts the welfare
of American shoppers by approx. $ 50 billion
per year.
ëndustry Environment - Porter's five
forces of competition
7!2-38<!"#! È%+$#!#-"&

o Wal-Mart has a strong competitive advantage against

its competitors Kmart and Target.
o Rivalry in this industry is not as strong for the
competitors compared to Wal-Mart.
7--!$-"#
7--!$-"# #-3
#-3&&

o High because it is hard to form a large organization

that will be competitive at the same size as Wal-Mart
with such low prices.
o This industry has high barriers because it is too
expensive for new firms to enter and to be competitive.

7( 8,3$-"&
o Weak because basically the prices are low from
the beginning so there would not be any potential
for buyers to bargain with.

7( 8,++!$"&

o Weak because Wal-Mart uses its own distribution
centers that are located close to its stores.
o Wal-Mart is also far and away the biggest
customer of virtually all of its suppliers. ët's scale of
operation allowed it to bargain...
r7,:"#!#,#$"&
o Medium because it depends on where you live and
what type of Wal-Mart stores are closer to you.

o Substitutes would be going to another grocery

store, 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.
O
     
 
   
    


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 Service Layout

ëntroduced new Layout to improves

Èustomer Experience with faster
service.

Always offer unbeatable Prices.

Layout of the stores will save customers

time as they shop for everyday necessities.

ëts Service layout create an open shopping

environment that helps customers find what
they are looking for quickly.
Wal-Mart Shelf management
Èapacity Planning for Wal-Mart
 Èapacity Planning

@ The process of determining the production capacity

needed by an organization to meet changing
demands for its products.

@ The process of determining product quantity needed

by a firm to meet the demand of consumers.
 Essential elements of Èapacity
Planning

Among all elements for capacity planning, followings

are essential for Wal-Mart:

 Facility
 Product & Service
 Human Resource
 Facility Factor

] /+5#!  ën USA

Operating in 5 0 states
] /+3,# 4,3 0 0 facilities for all sort of
outlets
] /+!=$
 Around the globe
14 countries
] -$/,"$!=$
4 0 81 stores

] -$/,"$3,#
 Facility Factor
 New layout for customer experience.
] /+5#!
Shop layouts has been classified based on Wal-
Mart's operation
] /+3,#
Wal-Mart supercenters

a full-service supermarket
] /+!=$ Discount stores

discount department stores
] -$/,"$!=$ Neighborhood Markets
Shop for daily necessary goods
] -$/,"$3,# Sam͛s Èlub warehouses
membership based stores
 Facility Factor
Wal-Mart U.S. p
 million sft.
] /+5#! Wal-Mart international
pmillion sft
Sam͛s club 2
 million sft
Total Size Ê




] /+3,# Average size of each outlet
Wal-Mart supercenters

Varies between 51,000 sft to 51,000 sft.
] /+!=$
Average size 102,000 sft.
Discount stores

Varying from 98,000 to 261,000 square with an
] -$/,"$!=$ average of 197,000 sft.

Neighborhood Markets
Averages about 42,000 sft.
] -$/,"$3,# Sam͛s Èlub warehouses
Average club size of 133,000 sft.
 Facility Factor
] /+5#!

] /+3,# ]Single large warehouse for a single

state.
] /+!=$ ]Èovers all stores of a state

] -$/,"$!=$ ]Also has warehouse for Sam͛s club

which is a membership based store.
] -$/,"$3,#
 Facility Factor

] /+5#!

] /+3,#  #0-$/,"! 3,#

] /+ !=$ ]A networked connection

with store inventory with
] -$/,"$!=$ suppliers for inventory
supply when needed.
] -$/,"$3,#
 Product and Service Factor

] (-!5$ Every day low price.

Lower price than competitors (price

leadership).
] $"
Lower price due lower operational cost.

] ,++!$-"
 Product and Service Factor

] (-!5$ §
  






Wal-Mart U.S. $2 58.2 billion

Sam͛s Èlub $ 46 .7 billion
] $" Wal-Mart ënternational $ 100.1 billion
Worldwide Total $ 405 billion

] ,++!$-"
 Product and Service Factor

] (-!5$ ] Partners with more than 2,5 0 0 minority-and

women-owned business suppliers.

]Networked communication & Just ën Time .

] $"

] ,++!$-"
 Human Resource Factor

] ,%:$-8
$%+3$$" ] 2.1 million employees all over the world

] $>?$ 4$- ]1.4 million employees only in U.S.

 4"$<,
-!$ ##! ]Largest privet employers in US, Mexico & Èanada.

] .!

] $"
 Human Factor

] ,%:$-8
$%+3$$"
] 869000 women working in Wal-Mart.
] $>?$ 4$-
 4"$<, ]More than 430,000 employees are 50 and
-!$ ##! over.

] .!

] $"
 Human Factor

] Number of
employees
] Both Skilled and low skilled employees.
] Age, Gender
and sexual ]Employs senior citizens who needs supplemental
orientation income.

]Employs Students who needs skill and

] Skill experiences.

] Wages
 Human Factor

] ,%:$-8
$%+3$$"
]Hourly wage rate.

] $>?$ 4$- ]Wage of $ 1 2 per hour for semi skilled

 4"$<, employees.
-!$ ##!
]Higher wage rate for skilled employees and
in urban outlets.
] .!
]Bonus on performance.

] $"
 Reliability

w
 & $
 & $
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ͻ 0+-!5$
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ͻ ,%:$-8
,#$#"
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 SUPPLY ÈHAëN MANAGEMENT

] ͞ Supply chain management involves

the flows of material, information
and finance in a network consisting of
customers, suppliers, manufacturers,
and distributors͟
 THE REASON!

] Efficient supply chain

] Deals with suppliers for e.g P & G
] Service Differentiation- different deals with
different customers.
] Sets different service policies, such as service
intervals, or delivery times, for different groups of
accounts and often products.
] key to providing excellent, consistent service at a
reasonable cost
 Õ
 Õ


] 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
RFëD
 RFëD

] Radio frequency identification

] Keep track of goods at any point in time, and also
tells you where it is.
] Eliminates physical counting of inventory
] ës in line wit JëT.
] As soon as inventory levels go down, Walmart can
re-order.
] ëmplemented in 2 0 0 5.
 Why RFëD ?

] $4,5$#/$+""!:!!#38! 2$ #-3"/-! .$ 4,#989"#5.

"!#,#! 7

] %+-2$8,8!%$ #-#$"7

] %+-2$#/$5,"#%$-"$-2!5$7

] $4,5$! 2$ #-3 4:-5"#7

] !%! #$% 3% ,+-5$"" 4!%+-2$#/$+$-#! 

$88!5!$ 537
] Get employees from places where labor is
cheap.
] ëncreasing wage rate for employees
] Keeping high quality products.
] Should focus on service along with lower price.
Thank You !!!