Value Chain Management of Walmart Essay Example
Value Chain Management of Walmart Essay Example

Value Chain Management of Walmart Essay Example

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  • Pages: 8 (2176 words)
  • Published: October 3, 2017
  • Type: Case Study
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Walmart, founded by Sam Walton in 1962, is a leading international grocery chain. It operates discount and warehouse stores worldwide and has become the largest corporation in the world as of 2013. Walmart China, with over 390 units in more than 150 cities, offers a wide range of products including toys, electronics, groceries, jewelry, clothing for all ages, pharmaceuticals, automotive supplies, books,
gardening supplies,
sporting goods,
pet supplies,
office supplies
pool accessories
paint and art supplies
DVD players.
The company partners with nearly 20,000 providers in China resulting in over 95% of their merchandise being sourced locally.
Walmart's core values include respect for individuals serving customers and striving for excellence. They aim to provide a friendly shopping experience every day through their unique corporate culture. Walmart's satisfaction guaranteed refund and exchange policy ensures customers have confidence in the quality of their products (About us.Walmart 2013).


s research methods including questionnaires and street interviews were used to evaluate customer satisfaction; identify factors influencing satisfaction or dissatisfaction; determine the status of products/services; and estimate characteristics within a potential customer population. The sample size for this study was 50, with random sampling employed to ensure equal selection chances for each element.The questionnaire used a graduated scale and a diagrammatic evaluation table to gather quantitative information. Positive phrasing was employed to enhance respondent understanding, and the Likert Scale was utilized (e.g., 1=Strongly Disagree, 5=Strongly Agree). Five pilot tests were conducted on November 2nd to assess various aspects of the questionnaire, including wording, layout, comprehension, practicality, and effectiveness. Based on the results of these tests, Appendix 1 contains the refined version of the questionnaire.

On November 9th at Walmart Supercenter Shenzhen Yuanling Branch, street interviews were conducted as part o

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this research. The main goals were to evaluate whether Walmart is meeting consumer needs and to assess how their service system impacts consumer attitudes. The study focused on both current and potential customers in China while examining factors that influence customer satisfaction and loyalty towards Walmart supermarkets. Specifically, the questionnaire addressed shopping convenience, personal service quality pricing policy post-purchase service experience goods available for purchase in-store.

It should be noted that this study had a small sample size and may not represent all customers. Furthermore, it was found that street interviews are more expensive and provide less anonymity compared to other research methods.The main focus of the study was on factors that affect customer satisfaction at Walmart Shenzhen Yanling Branch. However, it did not assess customer preferences for different supermarkets in different states. It is also worth noting that cultural differences may lead to varying levels of satisfaction, making it challenging to identify specific factors influencing customer satisfaction with the same supermarket in different regions.

In terms of data collection, the study obtained 50 completed questionnaires. The results revealed that customer satisfaction is significantly influenced by the store's appearance and purchase experiences. These factors also impact customers' likelihood of repurchasing from and recommending the supermarket to others.

Among various elements, price and post-purchase service have the greatest influence on customer satisfaction. Additionally, in-store goods play a role in fostering loyalty among customers. Overall, most consumers acknowledge Walmart's service quality and express particular satisfaction with its after-service offering.

Approximately 78% of customers are content with the post-purchase warranty service provided by Walmart while 60% are satisfied with its pricing strategy. Nevertheless, a small portion of customers have reported dissatisfaction regarding

certain aspects of the service such as difficulty finding parking spaces or inadequate store infrastructure like child stroller services and restrooms.

Lastly, through their operations in China, Walmart offers five key values to its customers based on this study's findings.The text highlights the importance of various factors in achieving customer satisfaction. These factors include price competitiveness, a wide range of product categories, convenient shopping experience with long opening hours, availability of various payment methods, and reliable product quality through strict quality control measures. Customers highly value personal service and prefer to be treated in a friendly manner.

Walmart's post-sales service plays a crucial role in consumer satisfaction as it provides full refunds or replacements for dissatisfied customers. The study emphasizes the significance of after-sale service for consumers. Price is identified as the most influential factor on consumer satisfaction, with 42% of respondents considering it their top consideration. Walmart benefits from this by emphasizing its "everyday low price" approach and creating more opportunities for expansion.

Furthermore, Walmart understands and caters to its customers' basic needs by focusing on competitive prices and having in-stock products. Interestingly, according to customer rankings from Fred Martels' publication "People Solution Strategies 2003," product variety ranks third in importance while being treated with respect holds the fourth position.

In comparison, traditional Chinese shops have not prioritized service quality leading to lower levels of consumer satisfaction. Ultimately, customer satisfaction is achieved when a company's performance meets or exceeds client expectations (source: Fred Martels' publication "People Solution Strategies 2003").Satisfied customers are more loyal, make frequent purchases, are less price-sensitive, and speak positively about the company. Understanding customer demands helps develop competitive strategies. At Walmart, simply thanking customers for

shopping in their stores is not sufficient. Providing excellent post-purchase service is crucial for customer satisfaction and ensuring repeat business.

In China, consumers are accustomed to friendly service in national supermarkets. Walmart has built a reputation for providing good post-purchase service that clients see as essential for their satisfaction. Walmart's value proposition centers around offering everyday low prices (dlp), which is at the core of their business model. They offer a wide range of products and services that allow customers to conveniently complete all their shopping in one place – from groceries to pharmacy items – saving them both time and money.

Additionally, Walmart places significant emphasis on customer value through product bundles and effective service presentation. The personnel at Walmart receive thorough training to greet and assist customers in any way possible, particularly when they are ready to make a purchase decision.

To ensure a positive shopping experience, Walmart has checkout staff available to help customers pack their bags with special attention given to frozen or fragile items.Walmart conducts online surveys on their website ( to collect customer feedback and gauge satisfaction. Completing the survey gives customers a chance to win one of five $1000 Walmart shopping cards. Improving customer service is crucial for enhancing sales, and Walmart meets the changing needs of consumers by offering convenient store hours from 10:30p.m. They also prioritize staff motivation by consistently evaluating and adjusting financial rewards and other forms of motivation. This ensures staff satisfaction, leading to customer satisfaction. Technology plays a key role in Walmart's success as they use it effectively in supply chain operations to maintain lower prices compared to competitors while focusing on business efficiency and

affordability. The utilization of an enterprise-wide information system called Enterprise Resource Planning (ERP) allows Walmart to manage all operations activities and enhance value within the company. The ERP system uses a common database, shared reporting tools, and provides access to green goods and entry information in a pre-existing time environment.Walmart utilizes a computerized stock control system for production planning, master production scheduling, and procurement purchase orders. The ERP system facilitates communication between departments like Sales, Accounting, and Human Resources by providing real-time information access. Walmart's high-speed computer system is interconnected with power centers and divisions to support sales activities. When inventory levels reach a specific threshold, the computer system alerts headquarters to coordinate product shipments to stores. This entire process takes about 36 hours and allows for quick responses to sales trends while minimizing inventory risks. To enhance customer relationship management (CRM), Walmart employs CRM systems to understand customer needs better and develop stronger relationships through insights into customer behavior and value. These systems also support e-commerce storefronts. Efficient information sharing throughout the chain helps reduce demand fluctuations, allowing Walmart to effectively manage customer demands by planning appropriate merchandise, monitoring real-time demand, and maintaining strong customer relationships.Walmart uses its Supply Chain Management (SCM) System to coordinate production with demand and work together with suppliers. This system helps plan order fulfillment and tracks products in the supply chain. Walmart's collaboration with Procter & Gamble (P) is well-known for utilizing SCM, where P receives sales information when their products are scanned in Walmart stores and knows when to ship more. Some cost savings from this partnership benefit Walmart customers. The objective is to seamlessly integrate customer order

information across all functions, including order consumption, customer fulfillment, and inventory monitoring. This integration also allows customers to view this information. By optimizing product placement and offering competitive pricing, Walmart effectively utilizes its initial stock list database. Partner companies connected to Walmart's central computers can access the company's information systems. To improve relationships and foster long-term partnerships, Walmart relies on computer networking and Electronic Data Interchange (EDI) systems for sharing information with suppliers. Ultimately, Walmart focuses on providing high-quality goods at affordable prices as a valuable commodity.Walmart's business strategy revolves around providing a wide range of products at reasonable prices. The company places a strong emphasis on everyday low prices to help customers save money. Ensuring customer satisfaction is also crucial to Walmart's success, as they offer refunds or replacements if customers are not happy with their purchase. Customer service plays a vital role in meeting the needs and desires of Walmart's customers.

This report evaluates the impact of improved customer service on sales and customer attention in China, specifically focusing on whether Walmart differentiates itself from competitors through its unique selling point. To enhance the shopping experience for customers, it is recommended that Walmart expands its store availability.

Relevant resources for further information include "Enterprise Resource Planning" by Alexis L., published by Tata McGraw-Hill Publishing Company Limited in 2008; "What I learned from Sam Walton: how to thrive and succeed in a Wal-Mart world" by Bergdahl.M (2004); "Introduction to Marketing Communications: An Integrated Approach" by Burnett.J. and Moriarty.S. (1998); "Wal-Mart World" by Brunn.S. (2006), which discusses the impact of Wal-Mart as the largest corporation in the global economy; and "Walmart in China" by Chan.A. (2011), which

focuses on Wal-Mart's operations and presence specifically in China.In his book "The Wal-Mart Effect: How the World's Most Powerful Company Really Works—And How it’s Transforming the American Economy," Charles Fishman (2006) explores how this American retail giant has adapted its business model to suit the Chinese market. Thomas Davenport (1993), in his book "Process Innovation: Reengineering work through information technology," examines process innovation through information technology, specifically how IT can be utilized to transform and streamline business processes for increased efficiency and productivity. Ellen F. et al (2009) discusses enterprise resource planning concepts in their book "Concepts in Enterprise Resource Planning." In "The 10 Best Decisions a Leader Can Make" by Bill Farrel (2013), he provides insights into leadership decisions. Michael Hicks' (2007) book, "The Local Economic Impact of Wal-Mart," focuses on the local economic effects of Wal-Mart stores. Finally, Carsten Kneer's (2005) book, "The Wal-Mart Success Story," delves into the success story of Wal-Mart.The and their contents remain the same in theand unified text:

Kotler.P.Marketing Management.1994.p.59
13.Lichtenstein.N.(2010) "The retail revolution: How Wal-Mart Created a Brave New World of Business." New York: Picador
14.Lichtenstein.N( 2004 ) "The Wal-Mart Triumph inside the World’s #1 company." New York: Portfolio
27.Slater.R.( 2009 ) "Boom Town :How Wal-Mart Transformed an All-American Town Into an International Community." Chicago Review Press28

"The following texts provide information about various books, reports, and articles related to Wal-Mart. These include 'To function God and Wal-Mart: the devising of Christian free endeavor' by Moreton.B. (2009), 'Wal-Mart: the face of 20 fist-century capitalist economy' by Rosen.M. (2011), a Shopper Update report called 'Shopper Update' from Sandra.S. (2005), an article from NYSE Euronest website, 'The Wal-Mart decade: how a new generation

of leaders turned Sam Walton's Legacy into the World's #1 Company' by R. (2003), 'The Wal-Mart Way: The Inside Story of the Success of the World's Largest Company' by Soderquist.D. (2005), another Shopper Update report titled 'Strategic Focus: Global Food.Drug.Mass Shopper Update' from Spiwak.S. (2005), 'Wal-mart: The High Cost of Low Price' by Spotts.G. (2005), an article written by Steve.M. in Bloomberg News on October 21, 2003 titled 'The Wal-Mart Effect: Top Retailer Is Widely Seen as Gauge of U.S Economy', a book named "Wal-Mart: A History of Sam Walton's Phenomenon" by Vance.S. and Scott.R. (1994), and finally, 'The Wal-Mart Revolution: How Big Box Stores Benefit Consumers.Workers.and the Economy.' by Vedder.R. and Cox.W. (2006)."The text below presents a compilation of sources with hyperlinks and their respective titles:
[33] Walmart (2013) "Our narrative." Available at
[34] Walmart (2013) "Culture." Available at
[35] Walton.S. (1992) "Sam Walton: Made in America." Random House LLC
[36] Westerman.P. (2001) "Data Warehousing: Using the Wal-Mart Model." San Francisco.Morgan Kaufrmann.
[37] Wei.Z and Wei.R (2011) conducted a study titled "Performance appraisal of client service scheme in Walmart" which was published in the Journal of System and Management Sciences, Volume 1, pages 85-93.

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