1. Ramamurthy

3. Entry Barrier - relatively high

5. Forward integration

6. Backward integration

8. Ease of Switching Cost, no cost

9. Lack of differentiation

11. Lack of differentiation

12. Volume, price game

14. Demographic Influence – Low to highMEDIUM

15. Wal-Mart: Value Chain (1) Infrastructure Discount Stores, Superstores, Warehouse Clubs Human Resources Recruiting, Training, incentives, employee feedback Technology Development Inventory System EDI, Satellite system at HQ Return Policy Procurement Merchandise Forecasting/Planning Shipping Services Media Inbound Shipment of items Distribution Centers Electronic Invoicing Hub & Spoke Network Own Fleet of Trucks Limited Yearly campaigns Returned Items, Customer Feedback Procurement Outbound Logistics Marketing & Sales Operations Service

16. Wal-Mart: Value Chain (2) Traditional Supply Chain Wholesaler Manufacturer Retailer Customer Wal-Mart Supply Chain Wal-Mart Customer Manufacturer Distribution Weekly Routines Store Operations Technology, IT Marketing Purchasing Frugal, led by Sam Walton

17. Market Analysis

18. Business Level Strategy Walmart is a broad cost leader Walmart ( MS = 35.8%, RoE = 26.6%) RoE Ke = 4% Market Share

19. RBV Analysis – Tangible Resources

20. RBV Analysis – Intangible Resources

21. RBV Analysis – Organizational Capabilities

22. Wal-Mart's key sources of Competitive Advantage Based on RBV Analysis all these competencies are pretty much sustainable over the long term.

28. The satellite-based forecasting & communication system can be easily replicated in other countries

30. Setting up its cutting edge distribution system in new markets could entails a huge investment upfront.

32. The satellite-based forecasting & communication system can be easily adapted to other businesses.

34. Wal-Mart’s cost leadership strategy wont be a good match for expensive, “value” products

36. Wal-Mart’s global procurement strategy, vendor relationships and supplier integration enable it to compete effectively in other formats as well.

38. Average store size – 84,000 Sq. Ft

40. Average store size – 173,000 Sq. Ft.

43. High revenue & profit per square feet

44. Discount centers are under margin pressure

45. High competition in warehouse club business is causing Sam’s clubs cannabalizing on its own stores

46. Recommendations

47. Thank you Questions?