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Wal-Mart Case study analysis

Submitted by: Sarfaraj Heranja
Roll No.: 33
Submitted to: Prof. Karan Shashtri

VRIO framework of Wal-Mart
Capabilities
Valuable?
Rare?
Hard to Imitate?
Support by organisation?
IT investments and systems
Y
N
N
Y
Economies of scale
Y
N
N
Y
Relationship with suppliers
Y
Y
Y
Y
Distribution system
Y
Y
Y
Y
Low price offerings
Y
Y
Y
Y
Culture
Y
Y
Y
Y

Core competencies:
Relationship with suppliers:
WalMart known for their supply chain management and this becomes possible because of their relationship with their suppliers. So it is valuable for them and rare also and supports by their logistic department.
Distribution system:
Distribution plays major role in WalMart’s low cost offerings. Because of their effective distribution network they can provide low cost products. So it is valuable for them and rare also and supports by their logistic department and marketing department.
Low price offerings:
WalMart’s main strategy is to provide low cost offerings to their customers and so it is their core competencies.
Culture:
WalMart’s value, thriftiness, hard work, innovation, continuous improvement makes the whole culture of organisation and because of their culture they can formulate and apply strategies.

Value chain analysis

Firm Infrastructure:
WalMart have2485 Wal-Mart stores, 682 Supercentres, 457 Sam’s Clubs, 5 Wal-Mart Neighbourhood Markets and 1007 units of Wal-Mart International. It serves over 100 million customers weekly worldwide. There are 1035000 associates, and the company is America’s largest private employer.
Human Resource Management:
Almost 60% of all managers in Wal-Mart stores started as hourly associates. The employees are encouraged to communicate openly, offer new ideas, take risks, strive for excellence and have fun. Employees are getting competitive wages and comprehensive benefits. In recruiting new associates the company begins a

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