Walmart Case Analysis...Value Chain
Download as PPT, PDF10 likes10,875 views
This document discusses value chain analysis and provides examples of industry and company value chains. It analyzes Walmart's value chain by breaking down its key value-creating activities and the associated costs as percentages of sales. These activities include inbound logistics, operations, marketing, shrinkage, salaries/wages, and cost of goods sold, with the latter accounting for around 74% of sales on average. The document aims to help understand how deconstructing a company's value chain can create competitive advantage.
1 of 15
Downloaded 1,522 times
More Related Content
What's hot (20)
Ad
Similar to Walmart Case Analysis...Value Chain (20)
Ad
More from smehro (20)
Recently uploaded (20)
Walmart Case Analysis...Value Chain
- 1. Value Chain Analysis: Learning objectives Mapping Industry value chains Calculating the economics of value chains Understanding the difference between Industry value chain and a company's value chain Understanding a company's value creating activities De-constructing value chain to create competitive advantage
- 2. Discount Industry Value Chain Natalie-Rosanna Rebot
- 3. Economics of Industry Value Chain
- 4. Discount Industry Value Chain Visualized:
- 5. Traditional Manufacture -> Wholesaler -> Retailer -> Customer Wal-Mart Manufacturer ->Wal-Mart -> Customer Sandro Olivieri
- 6. Walmart Value Chain Natalie-Rosanna Rebot
- 7. Walmart Value Chain The World of Walmart Map Growth of Walmart
- 8. Economics of Walmart Value Chain
- 10. Presented by: Benjamin Fieman MBAM 619 Strategy Management Professor Sunil Mehrotra WAL * MART Value Chain
- 11. Value Creating Activities Inbound Logistics (3.4%*) Operations (Building Rentals) (1.9%**) Licensing (0.2%) Marketing (1.1%) Shrinkage (1.3%) Salary/Wages (10.8%***) Cost of Goods Sold (~74%****) *= 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. WAL * MART’s Value Creating Activities % Sales COGS Operating Profit 75.3% 24.7% Oper. Activities 17.6% Oper. Income 7.2% Ben Fieman
- 14. Walmart optimized its Value creating processes!!
- 15. Walmart's Business logic Everyday low prices More customers More goods sold Lower prices from suppliers Lower operating Costs