Introduction Wal-Mart is an American, transnational retail company, which runs warehouse stores and chains of large-scale discount stores. It is the world’s largest public corporation and the largest private employer globally, employing more than 2 million employees around the world (Vance and Scott, 1997). The company runs 8,500 stores throughout 15 nations, operating under 55 diverse names (Wal-Mart, 2012). This paper explores the innovative operations of Wal-Mart, through the development of new, innovative products taking into account different market forces like competition, internal and external environments as well as the regulatory climate. The innovative strategies of Wal-Mart Competition and Wal-Mart Gregory (2009) discussed Wal-Mart’s strategy of competing out its competition in the international market, through its shocking product prices. An example is the case of the USD8 Jeans offer, besides its strategy of stocking all consumer products, ranging from matchboxes, milk, and toys among others. Wal-Mart has employed a wide-reaching massive stocking and strategy remodeling known as ‘project Impact’. The second innovative characteristic is enhancing the customer service capacity and the friendliness of their staffs. The third innovation is capitalizing on the stocking of the product categories, where the company can kill its competitors (Gregory, 2009). Product life cycle of Wal-Mart’s products Product innovation is one of the seven areas that are given emphasis at Wal-Mart. The goal of the company, in this area is channeling the capacity of the product development team, at exposing the deep-reaching social and environmental hot spots – with regard to the life cycles of their products. According to EDF (2010), the aim of the company is to realize an improvement of the overall sustainability of the products produced by the company. The company requires the suppliers to deliver groceries and food inputs that can be processed into products with a longer shelf life. The effort is aimed at increasing the health and the safety aspects of the products sold by Wal-Mart (EDF, 2010). New needs of a customer Wal-Mart has been a favorite shopping destination for many low and middle class shoppers (Blair, 2010). Wal-Mart is losing out on the changing needs of its customers, including the need for budget shopping, limited customer services and the need for variety, which are areas that Wal-Mart stores are failing in. Wal-Mart stores are losing in the capacity of service delivery, with many employees answering to customers, “that is not my department,” when they are requested to offer their help. Wal-Mart stores are also characterized by a dwindling selection of the products they offered (Blair, 2010). Regulations and Wal-Mart Straight (2010) discussed Wal-Mart’s innovative approach to regulation, towards realizing wider freight control. The change of approach to the supply chain will allow their suppliers to focus on the manufactory of products. The issue by employing the innovative supply chain approach, which will reduce the operational costs of suppliers. The company will worsen the US trucking industry, which had been undergoing recovery after a three-year flight dow