Walmart Value Chain Essay

2314 Words 10 Pages
A customer nowadays has a lot of options in front of him where products and brands are concerned. What helps the customer decide on a final product, is the value which he derives from that particular product. A customer might be looking for a television or he might be looking to travel abroad. In both the cases, there are processes involved which ensure that the customer gets the best product or service from the company. The customer expects to get a television at the optimum price with the best after sales service OR the customer gets the tickets timely, has a safe travel and enjoys his trip abroad. In both the cases, if the chain of events is right, the customer has gotten the best value after purchasing the product. This is where …show more content…
Products pass through a chain of activities in order, and at each activity, the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities Generic value chain is introduced by M. Porter in 1985; it represents the internal activities of a company or firm to produce the goods or services. Porter proposed a general-purpose value chain that companies can use to examine all of their activities, and see how they 're connected. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your …show more content…
Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. As of September 30, 2016, Walmart has 11,573 stores and clubs in 28 countries, under a total of 63 banners. Walmart is the world 's largest company by revenue, according to the Fortune Global 500 list in 2016, as well as the largest private employer in the world with 2.2 million employees
Primary Activities:
Inbound Logistics: Each company needs to have raw materials and the importing of raw material is known as Inbound logistics. In the process of inbound logistics, your relations with your suppliers play a crucial role towards adding value to your end product. If your relations are good with your suppliers, you are likely to get the raw material in a timely manner and at optimal cost. Also, the rate at which you are able to get the raw material from your supplier to your company also adds value to the process. Thus, your material is available for further operations.
Current Approach:
It has been estimated that more than 50 percent of Walmart products in the US come from overseas suppliers and about 75 percent of sales come from non-store inventory. Generally, Walmart inbound logistic practices are based on the following three

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