Wal-Mart Business Model
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Contents
1. Introduction 4
2. Develop Wal-Mart’s Business model from suppliers supplier to customers customer. 4
3. Use of communication and technology from point of sales to the entire value chain 5
3.1. Self Checkout Lane 5
3.2. Radio Frequency Identification (RFID) 6
3.3. Cash-Back Facility 8
4. Logistics 8
5. Pull System 10
6. FDI retail in India- would it be beneficial or detrimental in India’s economy (Business & Market perspective)- 10
6.1. FDI in India 10
6.2. Beneficial 11
6.2.1. Increase in GDP. 11
6.2.2. Increase in taxes by Govt. 11
6.2.3. Control on food inflation. 12
6.2.4. Productivity gains, storage innovations, Better/efficient supply chain. 12
6.2.5. Low prices – more disposable income may be saved or invested. 13
6.2.6. Benefit to Farmers – no middleman 13
6.2.7. Increase in foreign investment - Investment will bring foreign currency. 13
6.2.8. Brands will loss power with Wal-Mart will try to woo kirana stores. 13
6.2.9. Job Creation 14
6.2.10. Greening of Wal-Mart – Use of Recycled Material 14
7. Detrimental 14
7.1. Wal-Mart has always been in news for low payments, sex discrimination, restrictions on suppliers. 14
7.2. Affect some small business (kirana stores) in short run 14
7.3. Wal-Mart may try to dominate/monopoly 15
7.4. Give tough competition to organized sector retailers like Big Bazaar. 15
7.5. Will bring American culture. 15
7.6. Create more pressure on farmers. 15
7.7. More imports from china. 15
8. Conclusion 16
Introduction
Wal-Mart is a retail phenomenon with a set of characteristics that define its retail concept. The most important of these is “everyday low prices,” which are achieved by economies of scale, purchasing power over suppliers, and a highly efficient sales forecasting and replenishment system that incorporates state-of-the-art information processing
Contents
1. Introduction 4
2. Develop Wal-Mart’s Business model from suppliers supplier to customers customer. 4
3. Use of communication and technology from point of sales to the entire value chain 5
3.1. Self Checkout Lane 5
3.2. Radio Frequency Identification (RFID) 6
3.3. Cash-Back Facility 8
4. Logistics 8
5. Pull System 10
6. FDI retail in India- would it be beneficial or detrimental in India’s economy (Business & Market perspective)- 10
6.1. FDI in India 10
6.2. Beneficial 11
6.2.1. Increase in GDP. 11
6.2.2. Increase in taxes by Govt. 11
6.2.3. Control on food inflation. 12
6.2.4. Productivity gains, storage innovations, Better/efficient supply chain. 12
6.2.5. Low prices – more disposable income may be saved or invested. 13
6.2.6. Benefit to Farmers – no middleman 13
6.2.7. Increase in foreign investment - Investment will bring foreign currency. 13
6.2.8. Brands will loss power with Wal-Mart will try to woo kirana stores. 13
6.2.9. Job Creation 14
6.2.10. Greening of Wal-Mart – Use of Recycled Material 14
7. Detrimental 14
7.1. Wal-Mart has always been in news for low payments, sex discrimination, restrictions on suppliers. 14
7.2. Affect some small business (kirana stores) in short run 14
7.3. Wal-Mart may try to dominate/monopoly 15
7.4. Give tough competition to organized sector retailers like Big Bazaar. 15
7.5. Will bring American culture. 15
7.6. Create more pressure on farmers. 15
7.7. More imports from china. 15
8. Conclusion 16
Introduction
Wal-Mart is a retail phenomenon with a set of characteristics that define its retail concept. The most important of these is “everyday low prices,” which are achieved by economies of scale, purchasing power over suppliers, and a highly efficient sales forecasting and replenishment system that incorporates state-of-the-art information processing