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Evaluation of operations management and expansion of Wal-Mart in Malaysia


Task: Introduce the organization and discuss its operations management, objectives and strengths and weaknesses. Evaluate the design of the supply chain of your organisation with respect to the characteristics of the product/service of your organisation.Discuss the quality management practices/systems/processes implemented or adopted by the organisation and how they contribute to operations strategy.Evaluate the technology / information systems in the organisation that support operational performance currently. Discuss any three operational challenges faced by the organisation.Develop a project plan to successfully implement the new technology. The project plan must include the project scope, schedule (timeline with Gantt Chart), risks and constraints management, stakeholder management. Discuss the impact of the new technology on productivity, workflow and quality in the short term and in the long term, and justify the investment.



Performing organizational activity seamlessly is the prior responsibility of the manager to add value to the market position of the company. Managing the quality and standards of the product and service is essential for organizations to gain competitive advantages over the competitors. The report will analyze the importance of operation management and its influence on the organizational performance so that effective measures can be taken to improve the business outcome. Focusing on the operational management activity of Walmart will provide opportunity to find out the operational challenges in the organization and encourage it to implement emerging technologies to overcome the operational barriers.

Overview of the organizational context

Walmart Inc. is one of the popular retail organizations that operates a chain of hypermarkets, department stores and grocery stores. The headquarters of the organization is in Arkansas, US and now the organization has expanded their businesses over 24 countries by opening more than 10,586 stores in the global market. According to the Fortune Global 500 list, Walmart has become the target retail company based on the revenue generation as it generated $570 billion annual revenue (, 2022). On the other hand, Walmart is also one of the largest employers in the world that also take part in boosting the US economy. Currently 2.2 million employees are associated with the organization and actively take part in the improvement of the business position in the international market.

In the time of Covid-19, the organization has been able to maintain the steady growth and witness 74% growth in e-commerce sales that enable Walmart to gain competitive advantages over Amazon (, 2021). To maintain the smoothness in the organizational activities, Walmart has also utilized advanced technologies within its operation to reduce its dependence in the manual working process. The organization has already involved a cloud based system to ensure the seamless pickup and delivery service to their customers. Leveraging new and advanced technologies such as machine learning and cloud based powered checkout to enhance the customer experience. The organization also introduced an online strategy to provide effective service to the global customers.

Operating management

Operation management is an integral part of Walmart’s function that enables the organization to perform its supply chain and inventory activity efficiently. Walmart has a distinctive supply chain and it forms connections with more than 10,000 suppliers globally who help the organization to conduct their function effectively. Diversifying the supply chain management also lowers the dependency on any single supplier and minimizes the cost of production by improving the product portfolio. Responsible sourcing is one of the important strategic implementations that enable the organization to safeguard their operations and involve accountable suppliers with the business. Walmart has already introduced the standard of suppliers that is applicable to all the involved suppliers. On the other hand, application of the risk based approach helps in monitoring compliance with the standard and managing the potential risks from the business (Tan et al. 2018). Other than maintaining the performance in accordance with the global standard, Walmart is also focused on using appropriate tools and technologies that are associated with the Global Responsible Sourcing Compliance policy.

More than 158 distribution centers are located in the US market and under the logistic management, every distribution center is responsible for generating support to more than 90 to 100 stores within 200 mile radius so that stores can function effectively. One of the main reasons for the success of Walmart function is that the organization has been able to provide low priced products to the customers that have been purchased from foreign countries. On the other hand, the organization is also capable of diversifying their product range and managing the inventory effectively that help in provide effective service to the customers (Seaman and Bowman, 2022). Diversifying inventory has enabled the organization to retain customers with the business and deliver satisfying service. Application of vendor managed inventory has enabled the organization to shift the responsibility to the vendors for the production of the products. Involvement of strategic partnership with vendors has helped in joining vendors and providing products at best price that support the success of the organization.

Walmart has successfully integrated advanced technologies within its operation that is another reason for the high success rate of their business. The retail organization is famous for using one of the largest information technology infrastructures that allows it to forecast market demand precisely. Forecasting the market demand and tracking the inventory levels has enabled the organization to establish a productive relationship between supply logistics and customer service. On the other hand, Walmart is also the first retail organization that has used barcodes that increase the efficiency level of the operation and manage the function properly (Lacity and Van Hoek, 2021). Based on the changing demand of the market, Walmrt has also shifted its operation control from the centralized approach to cooperation approach that improved the level of collaboration among the members of the company. Technical advances have added benefit to the service of Walmart. Introduction of RFID (Radio Frequency Identification Tags) helps in tracking the merchandise movement in the supply chain and lower the rate of stock issue.

Appropriate application of performance objectives


Walmart is one of the largest retail organizations in the global market with a revenue generation of more than $486 million. One of the main reasons for their high level of success in the market as the organization has involved everyday low price strategy (EDLP) that help in continuing the association of customers with their service. Walmart has gained an immense level of success by applying EDLP strategy and it also adds competitive advantage to the market position. Low pricing strategy has been offered by other retailers such Krogers, Aldi, Lidl but they all have the limiting inventory while Walmart has been able to offer a wide range of products within low pricing strategy (Qian, 2018). Application of the low pricing strategy has also benefited the customers and helped in increasing the rate of purchasing frequency that strengthened the position of Walmart in the global market.


Delivering super quality products to the customers is another goal of Walmart that has been adding value to the market position of the business. Walmart has been gradually shifting their focus on technological interaction and adopting advanced technologies to deliver quality service to their customers. Engaging sustainable business practice has allowed the organization to maintain the involvement level of customers (Chen, 2021). Higher management of Walmart has been focusing on implementation of strategy that can exceed the expectation level of customers. The organization has been providing different shopping solutions to its customers. On the other hand, Walmart has involved responsible suppliers within business who act accountable and contribute in delivering satisfied service to the targeted customers.


Walmart has also introduced online service for their customers that provides the opportunity to order required products without attending the stores. On the other hand, the pick and delivery facility of the organization is extremely effective and helps in providing speed up service to their customers. Recently the organization has developed new e-commerce warehouses to push up the delivery by involving automated systems that only improve the service but also create new job opportunities (Kenny, 2021). In order to gain competitive advantages against Amazon, Walmart also developed a strategic partnership with technology company Knapp to improve the efficiency rate of their employees.


Inclusion of flexibility is another strategy that has the ability to improve the market position of organizations. Walmart has been focused on involvement of flexibility in their operation that will help in retaining a high level of engagement within organizational function. Flexible scheduling will help the employees to balance their personal and professional life and enhance their satisfaction level that encourages them to deliver satisfactory service to the incoming customers.

SWOT analysis of new market


Globally reputed brand by extending operation in more than 24 countries.

Integration of low pricing strategy improves the association level of customers.

Successful adoption of e-commerce strategy. Weakness

Overdependence on the US market.

Excessive competition in the global retail market.

Thin profit margin (, 2022).


Expansion to new markets such as Malaysia to reduce the dependence on singular markets.

Focusing on improving the quality standards of products.

Strengthening the online presence. Threats

Inadequate understanding about the cultural significance.

High rate of competition in the local market.

Walmart is a globally renowned brand that is considered to be one of the largest retail organizations in the world. Despite achieving enormous success in the global market, the organization is still facing challenges to retain their position in the global market. Overdependence on the US market has limited its profit margin. Global sales rate of Walmart is around $120 billion in comparison to the US sales rate, $341 billion (, 2022). On the other hand, the organization has also failed to achieve success in Germany and China that affect their business function. Therefore, it is high time for the organization to expand their business in emerging countries to add value to its market position. Expanding business in Malaysia can provide opportunities to the organization to strengthen their position in the Asia-Pacific region and support their business function.

Retail sector of Malaysia is one of the emerging sectors that witnessed huge growth in recent years. The retail industry has successfully increased their sales rate by 96% that can provide an opportunity for Walmart to improve their global sales (, 2022). However, the retail market of Malaysia is highly competitive and it is already occupied by many international brands such as Tesco, Aeon and other local brands, therefore it will be necessary for Walmart to consider the cultural differences between the US and Malaysia and apply relevant strategy to overcome the market challenges.

Expansion plan

To ensure successful expansion in the new emerging market, Malaysia, Walmart has to involve appropriate operation strategy to support the expansion. Walmart can consider forming strategic alliances with local distributors and suppliers who have adequate knowledge about the customer preferences and guide the organization to deliver service as per the needs of the local customers. On the other hand, Walmart needs to also distinguish between the culture of the US and Malaysia and generate strategies that will enable the organization to achieve the highest level of success.

Design of supply chain

The success of Walmart lies on their individual supply chain that helps to streamline fulfilment and lower down excess costs. It is due to the strong supply chain that has allowed Walmart to have more control over their logistics network and provide value in the e-commerce space (Metzger, 2021). The organization has an unique design in their supply chain that matches with the range of products and services offered at different online as well as offline stores. Walmart offers a one-stop shopping experience for their customers by combining a grocery store with fresh bakery, fairy products, apparels, electronics, home furnishing and toys. The greatest contributor of supply chain management in Walmart is early investment on supply chain optimization that is the reason for providing "everyday low prices" to the customers. Walmart works directly with distributors and manufacturers to cut down the cost of middleman and streamline the supply chain. In order to purchase goods and services in bulk quantities, Walmart has cut back on lead times to provide quick and affordable fulfillment. For instance, multiple marketplace fulfillment options such as ship from store, in-store pickup and digital pharmacy fulfillment in more than 5,000 delivery locations and 7,000 pick-up locations is due to the robust supply chain of Walmart (Flora, 2022). It is due to the strategic supply chain of Walmart that has allowed them to move products to 200 million customers in more than 11,000 stores. The market fulfillment option is mostly carried for the dairy products, food and bakery of Walmart to pick it, package it, ship it out and take care of any returns. Moreover, it also allows handling customer service in case of any customer complaints or future retail problems. In order to strengthen the supply chain and improve the designing feature of supply chain practices of Walmart, they have implemented a Vendor Management Inventory (VMI) model to manage the individual inventories of the suppliers and store the required products in Walmart's warehouses. The supply chain of Walmart is driven by consumer behavior which pulls replacement stock from inventory across a wide range of product supply chains. For instance, Walmart has approximately $1.5 billion in inventory and is still 15% above optimal levels to slash prices on overstocked goods (, 2022). The design of the supply chain of Walmart is mostly based on inventory that needs simple uploading of products to the Walmart delivery trailers. They are brought to Walmart warehouses, which are then repackaged and immediately distributed around the delivery centers without sitting in inventory.

Decisions supporting the operating strategy of the organization

The supply chain strategies of Walmart is based on the decision area of operations management that involve the strategic characterization of goods and services. Walmart has its own brands of goods such as Sam's Choice and Great Value that emphasizes low costs and low selling prices. To address the design of goods as per the operations strategy of Walmart, the business leaders are responsible for strategic planning for retail service expansion as well as product development. A major decision area is quality management that needs to cross three tiers of quality standards as a supply chain strategy. This three-tier approach matches the operation strategy of Walmart and satisfies the quality management objectives of the organization in terms of sustainability and corporate endurance (Sharma, 2022). The supply chain strategy decisions of Walmart are also dependent on process and capacity designs of their operation management that utilizes behavioral analysis, continuous monitoring and forecasting. For instance, the decision matrix of continuous monitoring of store capacities supports the operations strategy of Walmart to inform the current capacity designs. The decision area of supply chain strategy also focuses on the efficiency of movement of materials, business information and human resources that further aims to maximize accessibility for consumers and market teach. A variety of materials and goods are available to the employees of Walmart due to which they can address the business information aspect of the decision area and support the operation strategy of the organization. On the contrary, human resources management is one of the key supply chain strategy decisions that manage the turnover rate, attrition rate and cost-leadership generics of operations management. The supply chain of Walmart is integrated with advanced information technology, which improves the bargaining power of the organization due to the strong operations strategy of Walmart (Ashcroft, 2022). For instance, supply chain management information systems are directly linked to the operations strategy of the organization to minimize costs of operations around the supply chain practices.

Supply chain strategies

Two-days shipping

The most significant supply chain strategy of Walmart is two-day shipping with 100% coverage around the continental United States. It greatly supports the operations strategy of the organization as the supply chain focuses on syncing the inventory and selecting the fulfillmentcenter locations to send inventory. Walmart has recently connected with ShipBob to get a "Free 2-day delivery" badge, which captures attention and generates an average of 50% more conversions. The on-time delivery rate of ShipBob is over 95% due to which Walmart provides merchants with speed and reliability in terms of maintaining the operations strategy of the organization. This supply chain strategy is a significant advantage of Walmart's supply chain as it can boost their products in search and convert more customers with a delightful experience in expedited shipping options (Masood and Egger, 2019). Staying in control of the shipping strategy with a delivery tagline of 2 business days support the operations strategy of Walmart in terms of increasing competitive advantage.

Capitalizing on the power of technology

In recent years, Walmart has undergone a digital transformation by making huge investments in supply chain digitilization. Digital transformation greatly supports the operations strategy of the organization as it has contributed approximately 72% of strategic capital expenditures in supply chain transformation. The transformation includes infrastructure, supply chain technologies and e-commerce with a spending over of more than $11 billion (Flora, 2022). As these investments have resulted in a more flexible fulfillment, faster transition and more accurate demand forecasting, Walmart has strengthened their supply chain in terms of operation strategy of the organization. Moreover, they have integrated an advanced Warehouse management system (WMS) in their distribution centers, which serves an advantage of maintaining their operational efficiency for both physical space and labor. A significant investment is also made in sortation equipment around the supply chain management which can allow Walmart to automatically sort their products and allocate them in the right location. These help to establish a link between the WMS and automation equipment in accordance with the operations strategy of the organization of cost differentiation and leadership.

Using Electronic data interchange (EDI)

Implementation of Electronic data interchange (EDI) in Walmart is effective for the suppliers to cut the transaction costs associated with payment of invoices and ordering of products. Paying invoices and ordering products are considerably important in supply chain management of Walmart that automate the routine process of EDI (mhugos, 2020). By using EDI, Walmart has involved a high degree of control and coordination in receiving and scheduling of product deliveries. This has allowed the organization to maintain a steady flow of goods and services that support the operations strategy of Walmart with timely delivery options. Involving the EPI system in the supply chain management of Walmart is essential to manage their cross-functional activities as the system provides scanners which allow users to read the UPC bar codes on the label or container of products.

Implementation of quality management practices

In order to practice quality management practices in Walmart, the suppliers have undergone self-assessment and validation by a Walmart agent. Mission statement of Walmart is to maintain the highest quality and ethical standards in products and services. This mission statement greatly supports the operations strategy of Walmart as they aim to satisfy and meet the needs of customer service, while treating the employees like family (, 2022). Walmart has also implemented factory security standards for their suppliers to support the operations strategy of the firm and maintain an open communication with customers. This is increasingly important to upgrade the supply-chain practices and provide very high quality output in the management level. To determine the viability and effectiveness of a product, Walmart uses attribute control by which they can monitor their products in the distribution centers and determine the extent by which the products meet specifications. The suppliers of Walmart are under a strict agreement due to which they have to abide with the quality management processes and maintain the safety as well as the security of Walmart's purchased goods and services. Adopting Global Food Safety Initiative (GFSI) procedure is a quality mandate of Walmart that has allowed them to undergo factory audit checks in their food supplies to assure product quality. Walmart's priority is enterprise quality control to contribute to operations strategy and ensure a two-way communication process to simplify quality control and increase safety guidelines (, 2022).

Evaluation of the role of technologies

Walmart is among one of the organizations that systematically used the information system to add advantages to its present business position. Main aim of the organization is to centralize their function and integrate a strong collaborative approach that will help in achieving a high efficiency rate. Application of information systems has already supported the business growth of Walmart. Introduction of barcodes has provided an opportunity to the organization to gather data from different places and develop decisions with meaningful information. On the other hand, use of barcodes also enables the organization to monitor the sales rate as it provides access to the information about the product sales and purchasing rate of the products (Colacicco, 2018). Combining the barcode application with telecommunication technology has allowed the organization to properly communicate the information with different branches and develop real time decisions along with the adequate data transaction. Radio frequency identification system also known as RFID is another popular information system that is used by Walmart to facilitate their organizational operation. With the involvement of microchips, the technology is capable of transferring data within a short distance and passing the data to the computer screening. Use of the technology has enabled the retail organization to identify different products that help in increasing the effectiveness of the inventory management that ultimately enhance the efficiency level of the supply chain (Begley et al. 2020). RFID is helpful in tracking the product related information along the supply chain and managing the flow of the products.

Apart from integrating different information software systems within the organizational function, the organization has also concentrated in improving the expense of customers by using self-lane checkouts that lower the rate of waiting in queues and increase the satisfaction level for customers. Seamless movement of customers within the retail stores has helped in retaining the engagement level of customers with the organizational practice. On the other hand, Walmart has used robots within the organizational operation that help in managing the shelves without the intervention of manual help. Robotic technologies are capable of restocking shelves, finding and returning products, tracking the inventory levels has helped in reducing the extra time consumption level. Forming an alliance with Bossa Nova Robotics has enabled the organization to involve transverse robots within the function that collected all information related to the stores (Weinstein et al. 2021). Integration of the advanced technologies within the organizational function has contributed in updating the overall information system that allows the organization to make informed decisions. The robotics technology has also engaged machine learning and artificial intelligence within the organizational operation that improves inventory accuracy, lower the rate of employee turnover and enhance the level of customer experiences. Inclusion of automation technology to provide additional help to the laborers without replacing that not only limits the error generation in the organizational function but the operational strategy also improves the reputation of the company. Walmart has already included automation technology within 30 stores and increased the association level with different departmental functions.

Operational challenges

Cultural barriers

Cultural barrier is one of the significant challenges that influenced the global expansion strategy of Walmart. The organization has already failed to establish successful business in Germany due to the huge cultural gap. Walmart did not consider the cultural gap between different markets and wanted to impose their cultural preference on local customers that influenced the association level with the organizations. On the other hand, the pricing strategy of the organization was also not fit for all market types (, 2022). For instance, the Korean market appreciated the luxurious and service oriented experiences instead of application of low pricing strategy. In Japan, low price quality is perceived as poor quality that lowers the association level of customers in Walmart. The EDLP pricing strategy also contradicted the periodical discounts and markup in the Brazil market. Therefore, it is essential for Walmart to analyze the cultural factors in the Malaysian market and make strategies to address customers' needs.

Lack of knowledge about the local market

Insufficient knowledge about the local market is another challenge that impacts the international expansion of Walmart. Most of the cases, lack of strategic alliances with the local partners has disabled the retail organization to successfully establish their business in the emerging markets. For instance, in Germany, Walmart did acquire small local stores but they have poor market reputation that impacts the position of the organization in foreign market. Same thing happened in the Argentina market where Walmart tried to penetrate the market with its own stores that ultimately disabled the organization from acquiring a significant market portion. Due to the lower power over the global suppliers, Walmart has failed to compete against the local organizations in foreign markets and face obstacles to achieve the economic goals (, 2014). Therefore, it is important for the organization to form partnerships with local suppliers to form effective undressing about the local market performance.

Ineffective integration of strategies

Walmart is also struggling to achieve the customer expectation as it is unable to form a balance between applied strategies and customer demand. It has been seen that Walmart has mainly target the price conscious market segment and instead of making strategies that can appeal to the higher income section of the society, the organization is only focused on lowering their price to gain competitive advantages over competitors. This strategy may have delivered successful results in the US market but it failed to deliver successful results in the foreign market. For instance, German customers did not like to shop from the store whose staff smiled at them or provided any type of assistance. On the other hand, giving significant authority to the local managers also caused prime in the global performance of the organization as the organization has been accused of mislabeling their product in the Chinese market due to the overdependence on the local authority.

Impact of emerging technologies to overcome challenges

Walmart has already included distinctive technologies within their function that enable them to smoothen their performance in the US market. However, the organization is now considering expanding business in the Malaysia market and to ensure the successful expansion in the Asia-Pacific market, integration of AR technology will be helpful in analyzing the customer demand in the new market. Augmented reality can become a significant part of the organizational function that allows them to provide consistent performance to their customers by including multiple strategies that increase the association level of customers (Tan et al. 2018). On the other hand, AR technology also helps in enriching the experience of customers by introducing indoor navigation that is powered by AR. This technology will help customers to find products easily by providing direction on the phone. Effective implementation of the strategy would help in targeting the customers in a more efficient manner. Apart from providing guidance to the customers, AR technology also is effective for employees as it provides assistance to complete their work efficiently. Workers can find the problems in their task and apply specific strategies to overcome it.

Consumer behavior analysis can also be achieved through the integration of AI technology that will assist Walmart to strengthen its position in the new market. Due to the difference in the characteristics of the market, it is essential for the organization to gain full knowledge about the customers behaviors before starting to offer them service (Kenny, 2021). AI driven demand forecasting will be effective in forming connections with the new customer base. Apart from AI technology, NLP (Natural Language Processing) will also advance the customer service and provide genuine help to them to increase the association level with the organization.

Developing a project plan

Project scope

The scope of the project is to implement brand-new Augmented reality (AR) technology in Walmart to make shopping easier in a seamless and user-friendly interface. AR technology supports a realistic visualization due to which customers can identify a strange spot in their shopping apps and get attracted with the features of the technology, instilling a buying option. One of the most notable features of AR technology is haptic feedback, which can allow users to feel vibrations while using Walmart's application around their homes. This is due to the maneuvering of 3D models that can add a compelling level of realism to the experience of customers. The project will plan a successful integration of AR technology in Walmart's retail operation and supply chain to enhance competitiveness of the organization as well as overcome the operational challenges. Moreover, the project will also determine a schedule to complete the integration of AR technology in the organization's chain and identify risks or constraints that might be a barrier in successful implementation of the technology (Bottani and Vignali, 2019). Involving stakeholder management directives in the project plan is another important aspect in the project scope of Walmart while adding the new technology.

It can be addressed from the Gantt chart that Walmart requires at least 8 weeks to implement the new AR technology in their operations management. Walmart needs to prepare a product vision future set and select supported platforms to analyze the web AR development approaches. It is of utmost importance to review the five types of AR and choose an AR as well an SDK to involve UX designers in the app and create a mockup of AR application. Walmart needs to share all the prepared documents and works with software engineers through a collaborative environment while beginning the AR app development process. Involving Quality Assurance (QA) engineers to test the application and making the app available for installation is the final task of Walmart according to the schedule for using it online.


Privacy concern

The data collected from AR technology is not suitable for ensuring personal privacy of customers as it involves vast information of customers data. Implementing AR technology in the operations management of Walmart can be vulnerable to threats as it entails unauthorized access that can lead to serious consequences (Egger and Masood, 2020). This might be challenging for Walmart as they can face novel issues for user privacy due to limited scalability, scope and sensitivity of the information they collect.

Skills gap

Skills gap can be a significant risk for implementing AR technology in the operations management of Walmart due to which the company can face talent and technological gaps. With the rise in disruptive new technologies, there is an increasing amount of workload that can be a barrier in the successful operations management of Walmart due to low skill graded workers. This might arise if the workers have no technical training or knowledge in terms of AR technology in the world of automation.

Lack of regulations

There are currently no regulations to standardize and govern the usage of AR technology. This is due to the increasing manipulation of AR data that can influence worker decisions of Walmart and might create challenging situations in terms of business transparency and flexibility. Lack of regulations in AR technology can also pose a threat in terms of negligence and oversight of operation management practices in Walmart (Ghobakhloo, 2020).



Walmart can face significant constraint in terms of resources if they fail to sort and process enough resources to meet the demands of customers. This can arise if Walmart has inadequate human resources for managing their operations in the distribution centers and supply chains or has outdated equipment to carry out the project planning.


Failing to deliver the characteristics of the product up-to quality needs can be a potential constraint for Walmart. Total quality management and machine learning tool practicing quality approaches in Walmart can affect the project quality of the organization and fail to implement the new AR technology in their operation processes.


A limited project budget can create constraints for the project planning of Walmart as it might impact the flexibility and transparency of the project. For instance, AR technology in the operation suite of Walmart will require an approximate cost of $10,000 to $20,000 that needs to be spent by the company, otherwise it can disrupt the supply chain operations (Lebecket al. 2018).

Impact of new technology


Implementation of new AR technology in the operation management of Walmart can be effective for the workers as they can perform their required work in 44% less time than working normally. It can significantly boost productivity in the long-run, where the employees will feel more connected to the workplace as a whole and stay engaged with their peers during operation management or supply chain practices. This increased productivity in the long-run generally comes from a more engaging lesson, where the employees perform the task through AR technology instead of pondering the importance of the task as a whole. On the contrary, integration of AR technology in the project plan of Walmart might not be appropriate for short-term as it is too costly to purchase and can decrease the workplace productivity in a less duration (Masood and Egger, 2020).


By using AR technology in the operation management practices of Walmart, they can induce immersive workflows among the workers for a long-run as it focuses on a more collaborative approach to design, delivering real benefits to the manufacturing process. Such workflows will benefit the operational chain of Walmart as they can gain the biggest ROI in the futuristic terms. On the other hand, the benefit of AR technology implementation in Walmart for the short term can outweigh the costs without sacrificing quality and innovation in the organization, along with the savings of the organization's money.


Application of AR technology in the new project plan of Walmart can have a dramatic impact on the quality of the operation management practices, especially in the manufacturing procedures of the organization. In the long term, AR technology can simplify and streamline complex manual assembly, part kitting, inspection, training and sequencing processes of the supply chain management of Walmart (Attaran, 2020). Apart from that, AR technology can also benefit Walmart in the short term by using it as a brand differentiator to deliver lasting impressions and allow the customers to enjoy virtual experiences.

Justification of the investment

The investment of new AR technology in the project plan of Walmart will depend on a variety of factors, such as AR content, types of AR app including marker-based and markerless AR. It would allow customers to point their mobile devices through the Walmart app from which they can easily identify their required products. An approximate investment of $20,000 will be required by Walmart to implement the new technology in consideration to the proposed resources that will be needed to allocate as per the project schedule. More than 50% of AR systems require a unique 3D graphics that might cost $1,000-$2,000, depending on the time consumed by the 3D artist to create a 3D model for the operation management and supply chain management of Walmart (Zhu et al. 2019). They also require a software license to influence the augmented reality in their platform, which can also cost up-to $100-$150. Walmart can avail the option of equity market as an investment type to bring good returns in the market on the basis of risk-appetite.

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