WELCOME
Company background
Founded by Sam Walton in 1962
Walmart has 8,446 retail units under 55 different banners in 15 countries.
The largest private employer
Sales of $405 billion in 2010,
It has employee more than 2.1 million.
Wal-mart & the COMPETITIONTo sustain competitive advantage, a firm must ensure that its competition finds it hard to imitate its chosen position.Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers Outputs
Strategy
Operation StrategyCapturing market share with “everyday low price” strategy.“the process of creative destruction”.Responding competitors strategy. (opened “Pennies-n-Cents” stores in against dollar stores).Cultural adaptation.Training employees because people are key to Wal-Mart's businessBuy at less to sell at less.Withdrawal strategy.
Competitive StrategyDifferent shop design for each demographic groups.All product in one store.Competence in use of information technology for logistics system.Highest customer satisfaction
Productivity
ProductivityCreating 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.
Industry Environment - Porter's five forces of competition
1.Rivalry of Existing Competitors:· Wal-Mart has a strong competitive advantage against its competitors Kmart and Target.   · Rivalry in this industry is not as strong for the competitors compared to Wal-Mart.2.Barriers to Entry:· 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.· This industry has high barriers because it is too expensive for new firms to enter and to be competitive.
3.POWER of Buyers:· Weak because basically the prices are low from the beginning so there would not be any potential for buyers to bargain with.4.POWER of Supplies:· Weak because Wal-Mart uses its own distribution centers that are located close to its stores.   · Wal-Mart is also far and away the biggest customer of virtually all of its suppliers.   It's scale of operation allowed it to bargain...
5. Substitutes:· Medium because it depends on where you live and what type of Wal-Mart stores are closer to you.· 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.
Wal-Mart product and service design
Service Layout
Wal-Mart Shelf management
Capacity Planning for Wal-Mart
Capacity PlanningThe 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 Capacity PlanningAmong all elements for capacity planning, followings are essential for Wal-Mart:  Facility
Product &  Service
Human ResourceFacility FactorIn  USA
Operating in 5 0 states
4,3 0  0  facilities for all sort of outlets
Around the globe
14 countries
4 0 81 stores Shop locationShop layoutShop Si z eWarehouse Si z eWarehouse layout
Facility FactorNew layout for customer experience.Shop layouts has been classified based on Wal-Mart's operationWal-Mart supercenters
a full-service supermarket
Discount stores
discount department stores
Neighborhood Markets
Shop for daily necessary goods
Sam’s Club warehouses
membership based storesShop locationShop layoutShop SizeWarehouse SizeWarehouse layout
Facility FactorWal-Mart U.S.	 602.9   million sft.Wal-Mart international  269.9   million sftSam’s club79.4       million sftTotal Size		952.2 million sft.Average size of each outletWal-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.
Sam’s Club warehouses
Average club size of 133,000  sft.Shop locationShop layoutShop SizeWarehouse SizeWarehouse layout
Facility FactorSingle large warehouse for a single state.
Covers all stores of a state

Operation Management for Walmart