Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Value Chain Analysis: Learning objectives <ul><li>Mapping Industry value chains </li></ul><ul><li>Calculating the economic...
Discount Industry Value Chain Natalie-Rosanna Rebot
Economics of Industry Value Chain
Discount Industry Value Chain Visualized:
<ul><li>Traditional </li></ul><ul><ul><li>Manufacture -> Wholesaler -> Retailer -> Customer </li></ul></ul><ul><li>Wal-Mar...
Walmart Value Chain Natalie-Rosanna Rebot
Walmart Value Chain The World of Walmart Map Growth of Walmart
Economics of Walmart Value Chain
Walmart Value Chain
Presented by: Benjamin Fieman MBAM 619 Strategy Management Professor Sunil Mehrotra WAL * MART Value Chain
Value Creating Activities <ul><li>Inbound Logistics (3.4%*)‏ </li></ul><ul><li>Operations (Building Rentals) (1.9%**)‏ </l...
WAL * MART’s Value Creating Activities % Sales COGS Operating Profit 75.3% 24.7% Oper. Activities 17.6% Oper. Income 7.2% ...
 
Walmart  optimized its Value creating processes!!
Walmart's Business logic Everyday low prices More customers More goods sold Lower prices  from suppliers Lower operating C...
Upcoming SlideShare
Loading in …5
×

Walmart Case Analysis...Value Chain

43,133 views

Published on

Published in: Business

Walmart Case Analysis...Value Chain

  1. 1. Value Chain Analysis: Learning objectives <ul><li>Mapping Industry value chains </li></ul><ul><li>Calculating the economics of value chains </li></ul><ul><li>Understanding the difference between Industry value chain and a company's value chain </li></ul><ul><li>Understanding a company's value creating activities </li></ul><ul><li>De-constructing value chain to create competitive advantage </li></ul>
  2. 2. Discount Industry Value Chain Natalie-Rosanna Rebot
  3. 3. Economics of Industry Value Chain
  4. 4. Discount Industry Value Chain Visualized:
  5. 5. <ul><li>Traditional </li></ul><ul><ul><li>Manufacture -> Wholesaler -> Retailer -> Customer </li></ul></ul><ul><li>Wal-Mart </li></ul><ul><ul><li>Manufacturer ->Wal-Mart -> Customer </li></ul></ul>Sandro Olivieri
  6. 6. Walmart Value Chain Natalie-Rosanna Rebot
  7. 7. Walmart Value Chain The World of Walmart Map Growth of Walmart
  8. 8. Economics of Walmart Value Chain
  9. 9. Walmart Value Chain
  10. 10. Presented by: Benjamin Fieman MBAM 619 Strategy Management Professor Sunil Mehrotra WAL * MART Value Chain
  11. 11. Value Creating Activities <ul><li>Inbound Logistics (3.4%*)‏ </li></ul><ul><li>Operations (Building Rentals) (1.9%**)‏ </li></ul><ul><li>Licensing (0.2%)‏ </li></ul><ul><li>Marketing (1.1%)‏ </li></ul><ul><li>Shrinkage (1.3%)‏ </li></ul><ul><li>Salary/Wages (10.8%***)‏ </li></ul><ul><li>Cost of Goods Sold (~74%****)‏ </li></ul>*= Averaging 1984 and 1985 logistics numbers ** = Adding 0.1% to the late 1970’s number *** = Averaging the salary figures given **** = Averaging COGS/Sales for 5 years Natalie-Rosanna Rebot
  12. 12. WAL * MART’s Value Creating Activities % Sales COGS Operating Profit 75.3% 24.7% Oper. Activities 17.6% Oper. Income 7.2% Ben Fieman
  13. 14. Walmart optimized its Value creating processes!!
  14. 15. Walmart's Business logic Everyday low prices More customers More goods sold Lower prices from suppliers Lower operating Costs

×