Thursday, April 07, 2016

Alibaba outsmarts Walmart ..

Nobody thought Walmart would be kicked out of its numero uno position in global retail business so fast ! Sam Walton would be rolling in his grave now ..

2015 revenue for Alibaba group ($489.4 billion) surpasses Walmart ($482.1 billion) and becomes the largest retailer in the world, as per audits by PWC.. ( and could be the world's largest organisation too in terms of turnover ! ).
Walmart getting royally kicked, Jack Ma enjoying the moment ..

Alibaba is now 4.8x Tata Sons and 60x Infosys.

East is slowly chugging and increasing in pace. Click here for full report ..

It makes great sense to understand how each of these companies use their manpower.

Regarding number of employees, Infosys needs 1,92,000 employees to generate a turnover of $9.2 billion (20,900 employees per billion dollar turnover), Tata Sons needs 600,000 employees to generate an annual turnover of $118 billion (5084 employees / billion dollar turnover) ,  Walmart needs 4565 employees / billion dollar turnover, while Alibaba needs just 73 employees / billion dollar turnover ..

It means each Alibaba employee generates an annual turnover of $13 million, while each Walmart employee generates turnover of $220,000 ($0.22m), a Tata Sons employee generates a revenue of $ 200,000 ($0.2m)and each Infosys employee contributes to an annual revenue of $ 48,000 ($0.46m).

Organisation               Employee contribution, $

Alibaba                        13m
Walmart                       0.22m
Tata Sons                     0.2m
Infosys                          0.048m

Alibaba has 59 times better labour productivity than Walmart and 271 times better labour productivity than Infosys.

But there is a definite difference between a retail co. turnover and software co. revenue ..

George ..

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