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Primary Activities Walmart’s primary activities include supply

Primary Activities

Walmart’s primary activities include supply chain management,
distribution, operation, marketing and sales. For supply chain management,
Walmart is able to cut costs of products because they have a high bargaining
power to suppliers. This allows the company to generate more revenue. Walmart
also provides thousands of suppliers with computer access to point-of-sale data
through Retail Link and this makes Walmart the only source of real-time data
for suppliers. Walmart also reduces costs by 28% to 40% by directly importing
more than one half of its global imports from China. As for distribution,
Walmart has created its own warehouses and distribution network. Stores are
built within a day’s drive from the distribution center. Each distribution is
within 150 miles and serves approximately 150 stores. This greatly progresses
distribution efficiency while decreasing costs. Walmart’s operations consist of
three business divisions: Walmart stores, Sam’s Club, and Walmart
International. Walmart has expanded store hours for most if its U.S. stores to
open 24 hours from Monday to Saturday. Also, the everyday low price (EDLP)
policy helps reduce labor requirements since prices and displays don’t have to
be changed as frequently. As for marketing and sales, Walmart has many programs.

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The “rollback” program lowers prices and increases sales volume. Walmart also
sponsors local charities, which improves brand image in communities. Walmart
also introduced the MCAPS system that, combined with Retail Link (Walmart’s
supplier network), can allow suppliers to set up their displays in order to
effectively reach the maximum number of customers.


Support Activities

Walmart’s support activities include its research and development,
human resources, info system, and firm infrastructure. Research and development
tries to identify the best method for each store to generate highest revenue.

As for HR, Walmart had resisted unionization and reduced costs. Walmart has a
private satellite network. This allows easier communication with suppliers. They
also have EDI and Walmart’s Retail Link. Walmart implements a centralized
control by Regional Vice Presidents (RVPs)


Key Outcomes

The key outcomes that Walmart achieves from its primary and
support activities are that Walmart produces inimitable operational efficiency
through cost effective methods. Walmart did this by decreasing expenses and
costs and most importantly, found new innovating ways to effectively conduct
its business


Key Linkage

The one key linkage across activities is Walmart’s way to change
its processes across the company to be more cost effective. In the case, it is
constantly mentioned how Walmart achieves this by decreasing its expenses and
costs by new methods. For example, the case discusses the electronic data
interchange (EDI) and the RFID system. RFID system can cut costs by 6% and
reduce the time to verify products, overall decreasing the time needed to shelf
the products. The efficient process helps Walmart by cutting time and financial
costs to be able to undercut competitors and offer better prices to its


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