Describe how Wal-Mart’s supply chain works and comment on how it has helped create competitive advantages for the firm. Will Wal-Mart be able to generate the same advantages in India? Why or why not?
Wal-mart Supply Chain Flow Chat Manufacturer Manufacturer Manufacturer Retail Store Retail Store Retail Store Point of sale terminal Satellite system Bar code, RFID Radio, headphone Distribution center Company Headquarter
Through continuous supply chain cost control, Wal-Mart is able to maintain low prices for customers.
Asset utilization is another goal for Wal-Mart, but facility, private fleet, and information technology utilization are again primarily focused on lowering costs.
Information technology investments are directed towards improving efficiencies across the extended supply chain from vendors to stores, and thus the use of information technology supports the EDLP business strategy
Resulted in cost savings and ability to deliver products in to various stores within 48 hours
Usage of IT in Supply Chain management
Inventory tracking using information available in barcode.
POS scanning: Which helped in managing the products at supplier’s end.
RFID tags: Enabled to keep track of the inventory throughout the supply chain.
Advantage in the Cost performance matrix Wal-Mart's Perceived Value w.r.t. to competitors Lower Almost the same Higher Wal-Mart's Input costs w.r.t. to competitors Higer Disadvantage Disadvantage Depends Almost the same Disadvantage Parity Advantage Lower Depends Advantage Advantage
Retail: Porter’s Five Force Analysis Threat of Entry High both in unorganized and organized space Threat of Rivalry High Threat of Substitutes Medium to High Threat of Suppliers Low Threat of Buyers Medium to High Level of Threat in the Industry