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Walmart- Innovations case study

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Walmart- Innovations case study

  1. 1. Walmart – Competing in Global Market with it’s Innovative Ideas Lekshmi krishna M.R(100609) MTECH-Technology Management Department of Future Studies University of Kerala
  2. 2. Introduction <ul><li>R & D works in any company comprises three different but complementary dimensions of effort </li></ul><ul><li>Improvement </li></ul><ul><li>Managed Evolution </li></ul><ul><li>Innovation </li></ul><ul><li>Lets discuss the innovative measures taken by the leader of retail market . </li></ul>
  3. 3. Walmart <ul><li>World’s biggest retailer </li></ul><ul><li>Largest Public corporation by revenue </li></ul><ul><li>Sells Grocery & General Merchandise </li></ul><ul><li>Pharmacy & Optical Centre </li></ul><ul><li>Tire & Lube Express </li></ul><ul><li>Gasoline station </li></ul><ul><li>Fast Food Outlet </li></ul><ul><li>Also feature hair and nail salons, a video rental store, a family fun center, a branch of a local bank </li></ul>
  4. 4. Some interesting facts about Walmart <ul><li>First Store opened at Arkansas in 1962 </li></ul><ul><li>World’s largest Private Employer , fourth only to China’s Army ,NHS of UK, and Indian Railways </li></ul><ul><li>Walmart sells 20% of retail grocery in US and 45% of total Toys sold in US. </li></ul><ul><li>Its bigger than Europe’s Carrefour , Tesco & Metro AG combined. </li></ul>
  5. 5. Key Statistics <ul><li>Founder Sam Walson & Family – owns 40% of Walmart </li></ul><ul><li>Headquartered at Bentonville , Arkansas , US </li></ul><ul><li>Total No. of Stores – 6775 Stores </li></ul><ul><ul><li>Stores in US – 4065 Stores in US </li></ul></ul><ul><ul><li>Outside US – 2701 Stores in 14 Countries </li></ul></ul>
  6. 6. Marketing Strategy of Walmart <ul><li>Constant Improvement </li></ul><ul><li>Shared Passion, Vision & Organization Culture </li></ul><ul><li>Customer Focus </li></ul><ul><li>Speed </li></ul><ul><li>Execution </li></ul><ul><li>Improvements In Basic Operations </li></ul><ul><li>Community Involvement </li></ul>
  7. 7. What Walmart does to achieve those values? <ul><li>Competitively Reduced Cost (Puts All Gains & Savings Into Reducing Prices) </li></ul><ul><li>One- Stop Shopping </li></ul><ul><li>Keep Customer Shopping: Added Food & Services </li></ul><ul><li>Consumer-centric Sales </li></ul><ul><li>Localization </li></ul><ul><li>Co-operated Suppliers </li></ul><ul><li>Retail-tainment & Shop-ability: Aisles, Lighting & Signs </li></ul><ul><li>Store-manager Autonomy </li></ul>
  8. 8. Co-branding with McDonalds Co-branding Personalized customer service Intangibles 1. Food retail 2. Non-Food retail 3. On-line food retailer Activities Consistent positioning- “Always low prices” Positioning middle-class, lower middle Segmentation 1. Respect for the individual 2. High standards of service 3. Constant strive for excellence Service Strategy <ul><li>1. Lowest prices across-board the product lines </li></ul><ul><li>2. Product USP: core competency </li></ul><ul><ul><li>Low prices , In-stock positions , Customer service </li></ul></ul>Product Strategy To give ordinary folk the chance to buy the same thing as rich people . Mission/ Vision Wal-Mart
  9. 9. Current measures of Walmart!!! <ul><li>Walmart launches innovation techniques to drive sustainability progress with the goals </li></ul><ul><li>generating zero waste </li></ul><ul><li>100% renewable energy and </li></ul><ul><li>To sell product that sustain resources of the environment </li></ul>But how????
  10. 10. Walmart goes GREEN
  11. 11. The company realized that being green provides a boost to the bottom line and some good press. Here, we take a look at some of Walmart's GREEN INITIATIVE’S.
  12. 12. HIGH EFFICIENCY REFRIGERATION UNIT
  13. 13. HIGH EFFICIENCY REFRIGERATION UNIT <ul><li>All 12 of Walmart's high-efficiency pilot stores feature this massive roof-mounted refrigeration unit. </li></ul><ul><li>It uses a closed-loop system to increase energy efficiency and reduce overall refrigerant charge by 90%. </li></ul><ul><li>The unit also reclaims waste heat to provide hot water in restroom and kitchen areas. </li></ul><ul><li>70% of hot water used in Walmart stores is generated using waste heat from refrigeration. </li></ul>
  14. 14. Walmart Bio-Diesel Truck
  15. 15. Walmart Bio-Diesel Truck <ul><li>Run on reclaimed grease fuel made out of waste brown cooking grease extracted from Walmart stores. </li></ul><ul><li>Instead of clogging up drains, the grease goes to good use. </li></ul><ul><li>The trucks could ultimately increase Walmart's efficiency up to 2%. </li></ul>
  16. 16. Love Earth Jewelry
  17. 17. LOVE EARTH JEWELRY <ul><li>Features a tag that allows consumers to trace the jewelry to its mine of origin. </li></ul><ul><li>Consumers can go to the Love Earth Web site, type in the tag number, and receive information on where the metal in the jewelry came from before landing in a retail store. </li></ul><ul><li>By the end of the year, Walmart is aiming for 10% of its jewelry to achieve the company's sustainability criteria and standards. </li></ul>
  18. 18. Organic Cotton Baby Clothing
  19. 19. Organic Cotton Baby Clothing <ul><li>Walmart offers its own line of organic cotton baby clothing, George Baby Organic, as part of an effort to appeal to green-minded parents. </li></ul><ul><li>The clothing isn't much more expensive than regular baby clothing . </li></ul>
  20. 20. Locally Grown Produce
  21. 21. Locally Grown Produce <ul><li>Walmart probably isn't at the top of most people's lists for locally-grown produce, but the company partners with hundreds of growers across the U.S. as part of its &quot;Locally Grown at Walmart&quot; program. </li></ul><ul><li>Saved the company lots of cash. </li></ul><ul><li>The stores used to source peaches from only a few suppliers. </li></ul>
  22. 22. Super Sandwich Bale
  23. 23. Super Sandwich Bale <ul><li>A cluster of recyclable trash (loose plastic, plastic hangers, office paper, aluminum cans) sandwiched between two layers of cardboard. </li></ul><ul><li>In the past, items contained in the bale were tossed into the trash because they are hard to collect for recycling. </li></ul><ul><li>Now the bales go to a materials recovery facility where individual pieces are separated out for recycling. </li></ul>
  24. 24. Retail Share of Walmart
  25. 25. Conclusion <ul><li>In the organizational context, innovation may be linked to changes in efficiency, productivity, quality, competitive positioning, market share, etc. can all be affected positively or negatively by innovative forces. </li></ul><ul><li>All organizations can innovate, and one such innovative company is Walmart which captured the market with its eco friendly innovative technologies during last decades. </li></ul>
  26. 26. Web and Text Book References Websites www.walmartfacts.com www.gartner.com www.forrester.com www.hoovers.com www.wikipedia.com www.finance.yahoo.com www.ficci.com Text book Management of technology and innovation By P.N Rastogi [email_address]
  27. 27. THANK YOU!!

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