Walmart Internal Analysis

1. A good place to start with an internal firm analysis is to catalog the assets possessed by a firm.

Tangible Assets (Holley, 2013)

• 10,700 retail units operating in 27 countries

• 245 Million customers

• 158 Distribution centers

• 6,500 tractors

• 55,000 trailers

• 7,000 drivers

Intangible Assets (Holley, 2013)

• Experienced leaders – 75% of store managers started as hourly associates

• Low price leadership reputation

• Technology- Specialized computer system

• Supply chain leadership

6. Perform a Value chain analysis for your chosen firm X.

Primary Activities

Inbound and Outbound Logistics

Walmart’s ownership and execution of the supply chain is a core competency that sets them apart from the competition. They have minimized the turnaround time to replenish inventory back into the stores. They also have agreements with suppliers to deliver products direct to the stores. Walmart owns 158 distribution centers strategically located in close proximity to many Walmart stores. The distribution centers employ 7,000 truck drivers to deliver truckloads of merchandise to the 10,700 retail stores with their tractors and trailers, as the inventory system dictates.

Operations

Walmart uses coordinated planning and scheduling. Trucks are loaded and delivered during the day, so that the merchandise is ready to be stocked in the store during the overnight hours. This allows stocking to occur during off-peak customer times. The next day when 245 million customers are ready to shop, products are in-stock for purchase.

Home office operations have decentralized management executives to get closer to field operations. They have created a number of new positions spanning across several regions to become more relevant to a broad and diverse customer base (www.news.walmart.com). This provides resources and more flexibility to individual stores to meet the demand of their specific customers.

Marketing and Sales

Walmart’s marketing strategy focuses on ‘Everyday Low Prices”, which allows customers to shop anytime without waiting for a sale. Many competitors still use weekly advertisements with hope to gain market share. Walmart runs 13 advertisements per year, to showcase new items or reflect the season with items listed at regular everyday prices. The ‘everyday low price’ provides customers with piece of mind, that they do not have to wait for a sale to get a better deal.

Environmental awareness has also become a distinctive competence for Walmart. The company has a genuine concern to reduce their environmental footprint, which will appeal to customers who support this initiative. They are leading the way for other big-box retailers who can make a big difference with small changes. All of their goals and objectives are published in the annual statement for shareholders and the general public.