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A Detailed Case Study on Largest Retail Giant Walmart

Avinash kumar mahato

Avinash kumar mahato

Walmart is one of the largest retail companies in the world. It was founded in 1962 by Sam Walton. The headquarter of this company is situated in the United States. The main aim of the company is to provide consistent discounts, loyal customer service, and fast friendly service.

Walmart’s targets to expand its business in large cities as well as spread retail stores throughout the world. The retail stores of Walmart are divided into four divisions Walmart Supercenters , Discount Stores, Neighborhood Markets, and Sam’s Clubs warehouses. More than 100 million customers are visiting these Walmart Stores.

It is very uncomfortable for small merchants and communities in America. Walmart reaches their town and provides low-cost offers and the best customer service. It is a very bad condition for small merchants and businessmen in America. To downtown merchants, Walmart just comes and takes over all the small stores.

The purchasing power, aggressive marketing and provide low prices to the customer by Walmart, tend to pull out the business by the small merchants. Gradually the dream of Walmart company to become the largest retailer in the world is full filing day-by-day. But, they increase their business by the wrong actions and do not respect the culture or language of the communities.

Timeline Events Of Walmart company Business Model Of Walmart How Walmart Generates Revenue? Walmart’s Marketing Strategy Walmart’s - Flipkart Acquisition

Timeline Events Of Walmart company

The Timeline of events for Walmart company since its inception.

  • 1960: Sam Walton opened his first discount store in Rogers, Arkansas.
  • 1981: Walmart become the largest company in America .
  • 1981: After becoming the largest company in America, they opened their stores in a small Louisiana town.
  • 1983: Walmart opened its stores in Pawhuska and Oklahoma.
  • 1986: Walmart claims that it can restore more than 4000 jobs to American Communities.
  • 1989: They drive a campaign about Environmental awareness that Walmart is aware of land, water, and air.
  • 1990: There are some activist groups against the expansion of Walmart’s store.
  • 31st December 1990: Walmart’s closed its stores in  Louisiana.
  • 5th November 1991: Walmart opened up its store in Lowa City.
  • 6th October 1998: Walmart’s founder Sam Walton created a family charity named Walton Family Charitable Support Foundation.
  • June 1999: Walmart takes over the ASDA Chain (a British supermarket chain), now they have stores and depots across the United States.
  • 2001: Walmart becomes the world’s largest retailer, got huge sales of $191 billion.
  • July 2003: Walmart opened its stores in Beijing and till now they have 22 stores in China and counting.
  • 2006: Walmart closed its stores in Germany.
  • July 2007: Walmart is operating more than 2500 retail units in Walmart International and more than 500,000 employers in some countries.
  • 2007: By the ending of this year, they got a net $45 billion sales.
  • 2008: Walmart’s opened its wholesale facility in India. This is the first step of Walmart's to sell products through its retail outlets in India.
  • 2018: Walmart acquired Flipkart for $16 billion and owned 77% stake in India’s largest online retailer brand.

Business Model Of Walmart

walmart case study presentation

There are different business models that are followed by successful companies which vary from time to time. The business model of Walmart is based to eliminate the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs. The main motive of Walmart's business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

The main marketing strategy of the company is based on leading on price, be competitive, and deliver a great experience by the motto of Everyday Lower price.

Walmart has three important segments.

Walmart U.S

Walmart U.S is operated in the U.S. They provide customers with products and services that are not present physically in stores. They provide their services via the website and mobile application . The website of Walmart company has a special feature that provides a third party to sell products. The company operates its business on various platforms like supermarkets, discount stores, neighborhood markets, and e-commerce websites .

Walmart International

Walmart International is also divided into three sections which are retailers, wholesalers, and other small projects. These sections are also divided into various sections such as supermarkets, warehouses, electronics, apparel stores , drug stores, digital retailers, and many more.

It is the online platform of Walmart’s company i.e., “ samsclub.com ”. This club is consists of memberships of the only warehouse retailer operations. This section includes warehouse clubs in the U.S, as well as samsclub.com.

walmart case study presentation

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How Walmart Generates Revenue?

The Revenue Model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.

Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business. The two main sources of revenue are Product revenue and Service revenue .

Walmart's revenue in the fiscal year ending January, 2020 was $524 Billion.

Product Revenue

Walmart has a wide range of products in various categories:-

  • In the grocery category, they have products like Daily needs products, dairy products, frozen foods, bakery, baby products, beauty aids, and many more.
  • Health and wellness category have products like Pharmacy products and clinical services .
  • The entertainment category has products like electronics products, toys, cameras, movies, music, videos, and books.
  • Stationary, paints, and hardware, Automotive, sporting goods, crafts, and seasonal merchandise.
  • Apparel categories include apparel for men, women, boys, girls, shoes, jewelry, and accessories.
  • Home appliances include home furnishing services, home decor, livings, and horticulture.

Service Revenue

Walmart also provide services to generate revenue in various fields:-

  • They provide financial services like prepaid cards , money orders, wire transfer, money transfers, bill payments, and so on.
  • VUDU movie streaming services: This is a subscription-based OTT platform for buying and renting movies, watching TV shows on demand.
  • Clinical Services include primary health care, Physical and Wellness checks, Clinical lab tests.
  • Health Insurance services

walmart case study presentation

Walmart’s Marketing Strategy

Walmart's Business Strategy Analysis is one of the most important parts of any business whether it is small or large. It is very important to make an effective marketing plan to survive in the market . Walmart uses the principle of business marketing penetration method which is used to capture the market by offering lower prices and competitive prices to the consumers.

The company follows cost leadership which makes a huge profit for the company. The company provide low prices to the consumer and treated all the customers as king of the market to maintain the relationship between Walmart and the customer.

According to Walmart, there are four factors that drive the customer’s choice of retailer:

  • Assortment.

One more reason for the success of Walmart is purchasing products from local manufacturers in a bulk in one go and selling in small quantities. Buying from local manufacturers is the benefit for both. Buying more products from local manufacturers means they are creating more jobs and they reduce the unemployment rate. They should provide good quality products at a lower price to maintain a good relationship with customers and continue to get profits in business.

walmart case study presentation

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walmart case study presentation

Walmart’s - Flipkart Acquisition

Walmart Acquired Flipkart

Flipkart is one of the leading Indian e-commerce brands. In 2018, Walmart takes 77% stakes in India’s largest e-commerce company Flipkart and makes the world’s biggest purchase of an e-commerce company.

After this acquisition the future of eCommerce industry in India has become more competitive than ever.

The three main reasons for the acquisition of Flipkart are Flipkart’s leadership in some lucrative sections, its payment platform and the company’s talent pool.

Walmart’s world’s largest company is to continue to expand its business by improving its strategies day-by-day. The main reason for the success of Walmart is the EDLP system i.e., Everyday Low Price. They are working aggressively to maintain profits, market shares, and provide low prices to consumers. There are many business ideas to gain profit from a market. All depends on how you play the cards for a profitable business.

Walmart has made acquisitions of 28 organizations and has 16 sub-organization.

Feel free to reach us and share your understanding and views on the case study of Walmart. We would love to hear from you.

What is the business model of Walmart?

The business model of Walmart is based on eliminating the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs.

What is the motive behind Walmart's Business Strategy?

The main motive of the Walmart business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

What is Walmart's Market Strategy?

How does walmart generate revenue.

The earning model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business.

What are the main sources of revenue for Walmart?

The two main sources of revenue are:

  • Product revenue
  • Service revenue

Is Walmart owned by China?

The Walmart branch in China is majority Chinese-owned. But predominantly it is owned by Sam Walton's many children.

Why is Walmart so cheap?

They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.  Hence, by selling in high volume they can sell it at a cheap price and still gain profit.

What are the sub-organisations under Walmart?

There are 16 sub-organisations of Walmart. Some of them are:

  • Walmart Labs
  • Seiyu Group
  • Walmart Canada

What are the top acquisitions of Walmart?

Walmart has acquired 28 companies. Some top acquisitions are:

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Digital Transformation at Walmart: A case study.

Abhijeet Pratap

  • October 31, 2020

Walmart (NYSE: WMT), the largest physical retailer based in the United States, has achieved enormous growth over the years through its EDLP pricing strategy and a customer-friendly brand image. In recent years, the company has focused on digitalization to grow sales and improve customer service. Its e-commerce sales have continued to strengthen worldwide.

Physical retailers in the US are turning to digitalization to serve their customers better, whose lifestyles are now heavily influenced by digital technology. Walmart acquired the Indian online retail brand Flipkart in 2018. Since then, it has also made a significant investment in its US e-commerce infrastructure.

While investing in technology is essential for retailers to serve their customers more efficiently, Amazon’s growing influence in the retail industry has also proved to be a key driver of digitalization across the US-based retail brands. The need to focus on digital technology was never more highlighted than during the pandemic. Customer behavior changed profoundly with the spread of the Covid-19 pandemic . Customers mostly switched to online shopping during lockdowns. These changes will last longer since the impact on people’s lifestyle has been profound. 

Walmart has been investing in e-commerce over the past several years and is reaping its benefits now. However, Walmart’s focus is not just on e-commerce but on a complete digital transformation that drives superior associate performance while driving higher customer satisfaction also apart from stronger financial returns. Cloud technology is driving similar transformations across other retailers too. Walmart is leveraging cloud technology to strengthen its competitive position and accelerate its growth momentum.

Back in 2018, Walmart partnered with Microsoft to accelerate its cloud journey and more expeditiously deliver on changing customer expectations. Walmart’s digital transformation has also come in the face of growing competitive pressure from the e-commerce giant Amazon. From its online store to supply chain and logistics, digital technology, AI, IoT, and Machine Learning are driving rapid changes. Walmart’s continuous growth in the future depends on its ability to leverage technology to swiftly respond to the changing market scenario and customers’ purchasing habits.

Factors that drove rapid digitalization at Walmart.

Walmart is the largest physical retailer in the United States. The company has been enjoying enormous growth over the last several years. However, the retail landscape in the United States is changing swiftly.  Five main factors drove digitalization at Walmart: 

  • Demographic changes in the US population.
  • Changing consumer habits and expectations.
  • Rise of mobile computing.
  • Need for more speed and efficiency.
  • Growing challenge from Amazon

Demographic changes and other changes like the rise of e-commerce has also changed how people shopped. Since the retail landscape is changing, Walmart’s traditional operating model was insufficient to serve the customers’ evolving needs in the US. Millennials are now the largest segment of the US adult population (Pew Research, 2020). 

They are also the most important customer segment for retail brands like Walmart. The expectations of the millennial generation are very different from the  Baby Boomers. The millennials are tech savvier and live highly digital lives. They like to shop online for a large range of products and services. Apart from their general needs, these people also depend on online channels for their daily entertainment and various other needs like music and fashion.

The rise of social media and the millennials’ consumption habits all required the businesses that wanted to serve them to adopt a better model driven by technology. Walmart’s competitive moat lay in its pricing strategy mainly apart from the large array of products it sells. However, these things are no longer sufficient to cater to the millennial generation’s expectations fully. Walmart needed to transition to a better model that could handle things with higher speed and efficiency.

 Both these things are important for maximizing customer satisfaction in an era driven by computers, the internet, data and analytics. The dependence of retail brands on technology was also destined to grow because of the growing use of mobile computing. The need for higher mobility also drove higher investment into technology. Digital technology has altered the buying habits of the customers, who like to compare prices on their smartphones before they go for the final purchase.

Lower prices attract the millennials but there are more factors they consider before making a purchase. Customer convenience matters more than ever to win in a highly competitive retail landscape. It affects demand and sales. However, to grow the level of customer convenience requires a focus on digital technology which saves time and also helps reduce costs.

Another important factor that drove Walmart towards rapid digitalization was the rise of the e-commerce giant Amazon. Prior to that, Walmart was the undisputed leader in the US retail sector. Amazon is right next to Walmart on the Fortune 500 list, where the physical retail giant has managed to remain at the top for several years. In 2020, Walmart is on the top of the list for the eighth time (Fortune, 2020).

In terms of e-commerce sales in the US, Walmart is just next to Amazon (despite the substantial gap). There is still a substantial difference in the market shares of the two in the e-commerce industry but Walmart is trying to strengthen its position through continuous investment in digital technology. Amazon poses a major challenge before the other  US-based retailers whose continuous growth now depends on how well they can serve their tech-savvy consumers.

The drive towards a highly digital future has accelerated with the pandemic. People’s buying habits are being reshaped, and consumers will likely depend more on online shopping in the future. Walmart needed to take Amazon’s challenge since, over time, Walmart’s influence could substantially reduce due to the growth in Amazon’s, which is aggressively demanding lower prices from its sellers using its clout in e-commerce. Leveraging its existing competitive strengths for superior results was only possible if Walmart invested in digitalization.

Supply chain digitalization at Walmart

Walmart has focused on higher digitalization in nearly all areas of its business system. From the supply chain to sales, customer service, marketing, and store operations, the company has steadily been investing in digitalization to grow its operational efficiency and cost-efficiency. Walmart’s supply chain digitalization was an important pillar of its omnichannel strategy.

Digitalizing the supply chain was the first important step towards making its omnichannel strategy a success. To really gain from its investment in technology and digitalization, Walmart first needed to leverage the strength of its supply chain. A highly optimized supply chain is a critical source of competitive advantage for the retail brand. It has helped Walmart maintain consistently lower prices and could be further optimized using digital tools to gain higher cost-efficiency and derive better employee performance. 

Moreover, the traditional supply chain management model was insufficient to serve the evolving needs of US customers. Digitalizing the supply chain has enabled the retail giant to pursue its omnichannel strategy with a higher success rate. Walmart is leveraging digital technology to share information across the supply chain, and for tracking and managing inventory across its stores and warehouses in the United States.

An efficient and modernized supply chain has played a critical role in helping the company gain higher cost-efficiency. Walmart’s competitive position as the leading physical retailer in the US has strengthened with growing digitalization across its supply chain, which also helped it access a large pool of data. It gains valuable insights from the data to understand consumer behavior. Walmart’s large supply chain produces tons of data daily used to make important inventory management decisions. It also helped the company grow its supply chain resilience to serve customer needs better during a crisis like a hurricane or in the event of a pandemic like Coronavirus.

Walmart also secured its supply chain against fast-changing market conditions by leveraging data and analytics. In 2017, it invested in Data Cafe, one of the largest private clouds in the world to grow its data and analytics capabilities and process more than 40 Petabytes of data being generated from internal and external sources daily (Marr, 2017). Walmart’s data cafe is its analytics hub located at its headquarters in Bentonville, Arkansas. Data Cafe allows Walmart to model, manipulate, and visualize recent transactional data, it collects from more than 200 internal and external streams.

It enabled faster decision making at Walmart and provided solutions to several critical supply chain management related problems that could otherwise take a lot longer to answer. Walmart made Data Cafe available to its suppliers so they could gain free insights into customer demand and manage their supply and inventory better. 

In 2018, Walmart introduced its Connected Content Provider Program, whose main focus was to help suppliers scale content to Walmart’s catalog and other retailers (Ogura, 2018). The program aimed to bring harmony between retailers, suppliers, and content. With its syndication partners like Salsify, the company aimed to help its suppliers deliver content with higher speed and agility. Suppose a customer comes to Walmart looking for a particular product that is not available at the time. Walmart looks up its syndication providers like ‘Salsify’ to find which supplier has the product and then arranges for home delivery. 

Walmart is also using other latest technologies like AI and Blockchain to track inventory down its supply chain (Aitken, 2017). The retail brand partnered with IBM to leverage blockchain technology and leverage and track food products’ movement across its supply chain to ensure their quality and authenticity. The use of IBM blockchain allowed Walmart to track the movement of goods in its supply chain faster. Something that could take days or weeks to trace using the traditional tracking methods was now possible in seconds. Blockchain -based decentralized ledgers have simplified the process of tracking goods in Walmart’s supply chain.

Digital Transformation through Cloud Technology

Cloud technology is also driving rapid transformation across the retail landscape. Retailers turn to cloud technologies to grow their efficiency and transform a large pool of data they generate daily into actionable insights. 

In 2018, when Walmart was already using a large set of Microsoft services for critical workloads, the company announced a strategic five-year partnership with the cloud leader to make its digital transformation possible. This partnership with Microsoft allowed Walmart to leverage machine learning, artificial intelligence, and data platform solutions for a wide range of external customer-facing services and internal business applications (Walmart, 2018).

Walmart aimed to transform digitally, bring innovations that saved its customers time and money, and change how work was carried out inside the organization for increased productivity. To achieve its target, the company selected a full range of Microsoft cloud solutions that included Microsoft Azure and Microsoft 365. The main advantages of using cloud technology for Walmart were going to be as follows:

  • Leverage the capacity of Microsoft’s enormous compute capacity.
  • Ability to manage workloads seamlessly in an elastic environment.
  • Bring innovations faster through the new toolsets
  • Drive costs lower through a cloud native environment.

From reducing energy consumption in the Walmart stores to managing logistics, the company uses cloud technology to make its work processes more efficient and save time and money. The company uses machine learning to route thousands of trucks in its supply chain. Apart from that, Walmart gained access to various tools that allow its associates to improve their productivity and collaborate on projects. Tools like Microsoft workplace analytics, Microsoft Stream, and Microsoft One Drive allow associates to collaborate, save time, and work better.

Walmart owned Jet.com also uses cloud technologies heavily to serve customers efficiently. It has built an innovative eCommerce engine on the Azure cloud platform in less than 12 months. The Jet.com platform is composed of open-source software, Visual F#, and Azure Platform as a service (PaaS) like Azure Cosmos DB. The next-generation architecture of Jet.com is built for speed. It uses Panther, Azure’s next-generation inventory processing system to make its service faster, smarter, and more efficient. 

“Within just a few weeks, a prototype based on Service Fabric proved that Panther could support the massive scale and the functionality Jet needed plus high availability and blazing fast performance across multiple regions. But what really made Panther possible was adding Azure Cosmos DB for the event store. Coupling an event-sourcing pattern with a microservices-based architecture gave them the flexibility they needed to keep improving Jet.com and delight their customers.” (Microsoft, 2020)

Sources Used:

Pew Research. (2020, April 28). Millennials overtake Baby Boomers as America’s largest generation . PewResearch. Retrieved 2020, from https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/

Fortune. (2020). Fortune 500 . Fortune. Retrieved 2020, from https://fortune.com/fortune500/2020/search/

Marr, B. (2017). Really Big Data At Walmart: Real-Time Insights From Their 40+ Petabyte Data Cloud . Forbes. Retrieved 2020, from https://www.forbes.com/sites/bernardmarr/2017/01/23/really-big-data-at-walmart-real-time-insights-from-their-40-petabyte-data-cloud/?sh=1c6727f26c10

Ogura, F. (2018, September). Introducing the Connected Content Partner Program . LinkedIn. Retrieved 2020, from https://www.linkedin.com/pulse/introducing-connected-content-partner-program-frank-ogura/

Salsify. (2018). Salsify Selected By Walmart To Join Its Connected Content Partner Program . Salsify. Retrieved 2020, from

Aitken, R. (2017). IBM Forges Blockchain Collaboration With Nestlé & Walmart In Global Food Safety . Forbes. Retrieved 2020, from https://www.forbes.com/sites/rogeraitken/2017/08/22/ibm-forges-blockchain-collaboration-with-nestle-walmart-for-global-food-safety/?sh=66710fac3d36

Microsoft. (2020, June). Jet.com powers innovative e-commerce engine on Azure in less than 12 months . Microsoft Azure. Retrieved 2020, from https://customers.microsoft.com/en-in/story/822088-jet-com-powers-innovative-e-commerce-engine-on-azure-in-less-than-12-months

Walmart. (2018, July). Walmart establishes strategic partnership with Microsoft to further accelerate digital innovation in retail . Walmart Newsroom. Retrieved 2020, from https://corporate.walmart.com/newsroom/2018/07/17/walmart-establishes-strategic-partnership-with-microsoft-to-further-accelerate-digital-innovation-in-retail

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Walmart Case Study By: Rees Curtis, Jeffrey Christian, David Kim, Jenna Zivalich.

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Walmart Case Study By: Rees Curtis, Jeffrey Christian, David Kim, Jenna Zivalich

Retail Organization and Human Resource Management

walmart case study presentation

1 Fundamental labor rights and freedoms in the business sector in light of the UN Global Compact principles “From text to implementation in the GCC Countries”

walmart case study presentation

06 de noviembre 2014, Guayaquil - Ecuador Financiamiento de prácticas verdes en cadenas de valor Mariana Claudio, Sostenibilidad.

walmart case study presentation

Craig Kielburger - Free the Children In 1995 Craig Kielburger founded Free the Children He was 12 years old.

walmart case study presentation

Social Responsibility. CSR Corporate Social Responsibility Have you ever wondered if anyone or any thing was harmed during the production of items you.

walmart case study presentation

Ethics and Social Responsibility

walmart case study presentation

Thesis NGOs should focus on exposing sweatshops conditions to consumers, raising market awareness in an effort to improve corporate social responsibility.

walmart case study presentation

HUMAN RESOURCES How to Avoid the Traps. TITLE VII CIVIL RIGHTS ACT n Signed by Lyndon Johnson in 1964 n Remains most important piece of EEO legislation.

walmart case study presentation

Managing a Diverse Workforce

walmart case study presentation

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch Chapter 10 Business Ethics/ Social Responsibility/ Environmental Sustainability.

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International Business Environments & Operations

walmart case study presentation

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

walmart case study presentation

Young Arab Women Leaders The Voice Of The Future Haneen Sayed Human Development Coordinator Regional Youth Co-Coordinator Middle East and North Africa.

walmart case study presentation

Unit 1, Chapter 3. Ethics – are the rules that help us tell the difference between right and wrong and encourage us to do the right thing. Ethical Behaviour.

walmart case study presentation

FAIRTRADE What is FAIRTRADE ? Can you name fairly-traded products ? What are the goods we need to make these products ? Can you think of countries where.

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Section How are People Influenced at Work Topics: Environmental Issues Social Ethical Issues Legal and Self Regulation Issues Relevant Case Studies.

walmart case study presentation

Chapter 3 The Legal and Ethical Environment Nature of employment laws Key equal employment opportunity laws Employment-at-will Fair Labor Standards Act.

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SIMPLY CLEVER 1 February 23, 2010 Brussels CORPORATE SOCIAL RESPONSIBILITY ŠKODA AUTO RADEK ŠPICAR, M. Phil. Director of External Affairs.

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WalMart Case Study: RFID - PowerPoint PPT Presentation

walmart case study presentation

WalMart Case Study: RFID

Wal-mart introduction and business processes. 3rd december 2005 ... wal mart stores. largest segment accounting to about 67.3% of 2005 fiscal sales. super centers ... – powerpoint ppt presentation.

  • Angrish, Sangita
  • Chivukula, Venkata S.
  • DeWitt, Brendon
  • Patel, Raxesh
  • Shamsi, Shazeb
  • Yellapragada, Ramachandra
  • Introduction to RFID
  • Introduction to Supply Chain Management (SCM)
  • Introduction to WalMart and its Business Processes
  • RFID in WalMart
  • Current RFID Usage
  • Limitations and Challenges of RFID
  • Future of RFID
  • What is RFID ?
  • Why RFID over Bar-Code ?
  • RFID Working and Infrastructure
  • Electronic tagging technology that allows an object, place, or person to be automatically identified at a distance without a direct line-of-sight, using an electromagnetic challenge/response exchange.
  • 40 years old technology
  • Why being Used NOW?
  • right time to use the technology
  • Benefits OUTWEIGH the Deployment Costs
  • Ability to read without line-of-sight
  • Serialized numbering scheme enables more powerful
  • Understanding
  • Controlling of Supply Chain
  • Serial numbers provides individual entity tracking and much more detailed behavior of SCM than UPC or EAN used in Bar codes
  • No duplicate reading of the same tag a possibility in Bar codes
  • More powerful sensor-network and monitoring-system than bar-code systems.
  • Reader generate signals that are dual purpose provide power for a tag, and create an interrogation signal.
  • Tag captures the energy from Reader and executes commands sent by the Reader
  • Tag sends back a signal containing a unique digital ID (96-bit serial number) that can be looked up in a database available to the reader to determine its identity, perhaps expressed as a name, manufacturer, SKU (stock keeping unit) number, and cost.
  • Tags are generally passive because they require no batteries or maintenance.
  • Existing software systems
  • UNABLE to handle serial numbers
  • Solution RFID Middleware
  • RFID Middleware Layer between RFID readers and the application software
  • Consists of
  • Lower level device and data management
  • Higher Interpretation level
  • Lower level devices such as motion sensors, programmable logic arrays and human interfaces fetch data and provides to Data management layer
  • Data management layer provides some functionality of filtering data due to intermittent appearances and disappearances
  • After the data management layer yields data, the Interpretation layer extracts inference from such data and forwards it to the applications that deploy RFID
  • Supply Chain Management
  • Coordination of a network of facilities and distribution options
  • Includes procurement, processing and distribution
  • Five core processes
  • Integration of these processes to maximize benefits
  • Three levels of supply chain management
  • Strategic linked to corporate strategy
  • Operational involve day to day activities
  • Overall Goal
  • Optimize supply chains
  • Provide more accurate and time sensitive information
  • Maximize sales and profits
  • RFID and Supply Chain
  • Provide real time information
  • Better readings of customers and markets
  • Ability to provide right products at the right times
  • Deloitte Touché benchmark initiative
  • Only 7 of companies managing supply chain effectively
  • These 7 are 73 more profitable than other companies
  • Wal Mart Stores
  • Largest segment accounting to about 67.3 of 2005 fiscal sales
  • Super centers
  • Discount stores
  • Neighborhood Markets
  • Consists of membership warehouse clubs accounting to 13 of 2005 fiscal sales
  • Wal-Mart International
  • Accounted to 19.7 of 2005 sales
  • Market Strategy of WalMart
  • Everyday Low prices (EDLP)
  • Employs both Clicks Bricks and Bricks Mortar strategy
  • Organizational Development
  • Specialty Division
  • Retail Division
  • Competitive Advantage
  • Price match guarantee
  • Market opportunity
  • B2B Single firm network
  • B2C E-Tailer Business Model
  • Procurement and Distribution
  • Logistics Management
  • Inventory Management
  • Procurement
  • Procurement involves getting goods from different manufacturers
  • Involves reducing the purchasing costs as far as possible
  • Goods procured directly from the manufacturers, bypassing all intermediaries
  • Distribution
  • Distribution centre is divided in different groups depending on the quantity of goods received
  • Goods to be used internally in US arrive in pallets imported goods arrive in re-usable boxes.
  • Employees have access to the inventory levels of all the products
  • Employee makes two scans-
  • For identifying the pallet
  • For identifying the location from where the stock had to be picked up
  • Bar codes RFID used to label different products, shelves bins
  • The hand held computers guide employee to the location of the specific product.
  • The quantity of the product required from the center is entered in the hand held computer, which updates the information on the main central server.
  • computers enable packaging department to get accurate information such as storage, packaging shipping,
  • Saves time in unnecessary paperwork.
  • Enables supervisors to monitor their employees closely
  • Involves managing transportation delivery of products
  • More than 7000 company owned trucks services Distribution centers
  • This enables shipping of goods from distribution centers to the stores within 2 days and replenish the store shelves twice a week
  • Private Fleet Driver handbook tracking drivers activities
  • Cross Docking from Manufacturer to Customer
  • Cross Docking enabled demand chain
  • Demand chain - Customers pull the products instead of retailers having to push them
  • WalMart set up its own satellite system in 1983
  • Reducing unproductive inventory as far as possible
  • Use of Bar-code RFID technologies for easy packing and counting of the inventories, efficient picking and receiving proper inventory control of the products
  • Massively Parallel Processor - enables easy tracking movement of goods stock levels across all distribution centers and stores
  • Use of Magic Wand to keep track of inventory in stores
  • Use of sophisticated algorithm and technology infrastructure to forecast the quantities of each item to be delivered, based on inventories in the store and customer needs
  • Centralized inventory database
  • Initiated the plan to implement RFID in its supply chain in June 2003
  • Subsequently, reinforced the RFID standards and specifications in November 2003
  • Specification of RFID Components
  • WALMART SUPPLIERS
  • Type of Chip
  • Distribution Centers to accept RFID tagged products
  • 96 bit unique number to identify an item in the supply chain.
  • Global Trade Identification Number.
  • EPC data format on the chip is Class 1 Version 2 communication protocol.
  • Class 0 Factory programmable protocol
  • Class1 Provides the capability to write serial numbers on the chip
  • Operates in the UHF spectrum
  • 868 MHz to 956 MHz
  • Carries the 96-bit serial number
  • Is field programmable
  • Allows suppliers to write serial numbers to the tags while being applied to the products
  • OBJECTIVE To increase the efficiency of its supply chain.
  • Enhance Transparency of supply chain
  • Help in minimizing cost and labor
  • Strengthen inventory control
  • WalMart aims to reduce the practice of manually placing the order
  • Has achieved 10 reduction in the case
  • Implementation of RFID tags in WalMarts inventory has helped boost sales by keeping shelves better stocked
  • Usage of RFID has reduced out-of-stock merchandise by 16 at the stores that have implemented RFID tags for more than a year.
  • Cost Benefit Analysis
  • Initial Research indicated cost of RFID tag was above 1.
  • At present, TAG costs about 30 cents
  • Cost will drop to less than 5 cents, if deployed on a large scale
  • Analysts suggest that the tag should be approx. 1 cent for small ticket items
  • 130 major suppliers ship merchandise to WalMart distribution centers with about 5.4 million tags
  • By 2006, WalMart aims to mandate RFID implementation for all its suppliers
  • Major Suppliers
  • Hewlett-Packard
  • Johnson Johnson
  • Kimberly Clark
  • Kraft Foods
  • Proctor and Gamble
  • Kimberly-Clark
  • Manufacturer of paper goods products
  • Eg Kleenex, Huggies
  • Tagged Scott paper Towels shipment with RFID tags
  • First supplier to use RFID April 2004
  • Harvard Research suggests a seven step model for successful implementation of RFID.
  • Understand our visibility requirements
  • Query other end users about recommendations for trials
  • Move into the action phase in a real-world setting in a pilot/trial mode
  • Evaluate technical performance
  • Consider the economic benefits
  • Understand the impact
  • Decide whether or not to move forward with a larger scale implementation
  • Tesco supermarket tries out smart tagging
  • Sun Microsystems sets up RFID test centre in Scotland
  • I.B.M. Expands Efforts to Promote Radio Tags to Track Goods
  • Texas Instruments
  • Why the implementation of a 40 year old technology is taking so long?
  • As pointed out earlier, benefits are gradually outweighing the deployment costs
  • Limitations and challenges Barriers to Quick Deployment
  • Global standards
  • Variety of RFID standards and technologies
  • Technology problems
  • Read-range distances not sufficient to allow for consumer surveillance
  • Defective and poorly performing RFID tags
  • Damaged RFID tags
  • Data management
  • Lack of development of right information management tools
  • Tags, Tag Readers, Databases
  • Industry Standards
  • Privacy advocates are insisting the companies to state their intended use of the technology due to lack of industry standards
  • Privacy and civil liberties
  • RFID tags can be embedded into/onto objects and documents without the knowledge of the individual
  • Complex programming
  • Potential job losses
  • Merchants must not force their customers into accepting RFID tags in the products they buy.
  • RFID must not be used to track individuals absent informed and written consent of the data subject directly or indirectly.
  • For Retailers ??
  • The technology will bring a revolution.
  • It will be widely used in retail and consumer goods, automotive, healthcare, military, postal department and other scientific uses.
  • For Customers??
  • If the consumers think the technology is too complex, confusing or threat to their privacy
  • Will the technology survive?
  • Setting up more standards in the industry
  • Bringing down the cost of RFID
  • Level of understanding and experience

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case study walmart in china

Case Study: Walmart In China

Dec 19, 2019

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Case Study: Walmart In China. Alexandria Ryan. History on Walmart in the U.S. Walmart, founded by Sam Walton in 1962, is one of the most profitable retailers in the United States. The first Walmart opened up on July 2, 1962 in Rogers, Arkansas.

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Case Study: Walmart In China Alexandria Ryan

History on Walmart in the U.S. Walmart, founded by Sam Walton in 1962, is one of the most profitable retailers in the United States. The first Walmart opened up on July 2, 1962 in Rogers, Arkansas. By 1967, the Walton family owned 24 stores, with 12.7 million dollars in sales. In 1970 Walmart had gone national and became a publicly traded company where their first stock was $16.50 per share Finally in 1996, Wal-Mart opened its first stores in China

10 Rules for Building a Better Business • Commit to your business • Share your profits with associates, and treat them as partners • Motivate your partners • Communicate with your partners • Appreciate associates, and what they do for the business • Celebrate your success • Listen to everyone in your company • Exceed customer expectations • Control your expenses better than your competition • And lastly, swim upstream

Walmart Stores in China Walmart in China began in 1996, with the opening of a Supercenter in Shenzhen Walmart currently has 433 stores in China Walmart is planning to open up 115 new stores by 2017, which will be in bigger more popular areas like, Shanghai, Shenzhen, and Wuhan Walmart China believes in Local Sourcing, and they have established partnerships with more that 7,000 suppliers in China

Shopping at Walmart in China vs. United States Shopping at Walmart in China is completely different From what we are used to. Walmart China stores include: • People picking up raw meat with bare hands, unpackaged. • Extreme crowds • No “bulk” items • Alligator meat • Fish, Frogs, Turtles (to eat)

2014 Recall on Donkey Meat! In 2014, There was a recall on Donkey meat in some outlets in China, after DNA tests showed that the product contained DNA of other animals Also in 2011, Walmart China was fined for selling duck meat past expiration date. -Closure of 13 stores and dozens of employees suspended.

Walmart China Price Discrepancies -A report in 2016 addressed that store in China Continued to make “Bulk” Sales which are usually unprofitable and without authorization of management -Booked many sales without any merchandise leaving the shelves. -Inventory Issues, storage rooms becoming more and more full -2010, inventory was 12.3% higher than in 2009, addition of warehouses across the country. -Inventory growing faster than products being sold.

Walmart China’s major Competitors -Shanghai Bailan Group Co. Ltd -Sunning Appliances Chain Store group Co. Ltd. -Beijing Wangfujing Department store -Dailan Dashing Group Co. Ltd. -Carrefour One of Walmart in China's major problem is that they did not adapt to the “Chinese way” they stuck with the “American way”.

Walmart is committed to helping Chinese people live a better life • Women Economic empowerment-increase gender diversity, empower women through education and jobs. • Children’s Food Safety: Improvement of healthy growth of Chinese Children, • Sustainability and Community: Energy saving, Sustainable consumption, environmental protection.

Walmart’s Chinese Employment -Walmart China has around 100,000 Associates working for them. -Walmart Wages and benefits have been dropping lower and lower dramatically. -Walmart’s salary packages were being outrun by inflation and minimum wage. -Denying workers overtime even if they worked an excessive amount of hours. -2016 strike against flexible scheduling system. -Only good parts about working at Walmart seemed to be that they would pay you on time and never late, and that they were strict about health and safety regulations. -Walmart employees working full-time would make roughly around $25 to $28 per week.

Chief Executive Officer of Walmart China Dirk Van den Berghe -Former CEO of Walmart in Canada. -Credited with strengthening Walmart in Canada’s food business - Holds a Ph.D in Economics and speaks many different languages. -Working towards improving e-Commerce solutions for online purchasing. -Move faster to improve overall customer service. -”well-positioned” from previous roles in Asia and Japan with knowledge of retail business.

Walmart’s Awards From China -In 2010, they earned best corporate award of China by the Chinese Red Cross. -China’s Women Charity award by All-China Women’s Federation and China Women’s Development Foundations. - Best Retail place to work and retail innovation award. -China best employer enterprise by International Human Resource Association.

China at a Glance Total retail units=433 Walmart Supercenter=398 Trust-mart hypermarket=18 Sam’s Club=15 Neighborhood market=2 Smart Choice=0

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