Wal Mart Case StudyEssay Preview: Wal Mart Case StudyReport this essayWhen you think of the discount retail industry there is no bigger name than Wal-Mart. Wal-Mart has built them selves into the industry leader in a very competitive market, and they continue to set the bar for every company. But as of late Wal-Mart’s sales growth rate has been slipping, which is causing a major problem for them. For the past few years Wal-Mart has grown accustom to double digit sales growth rates, but recently they have been unable to match their previous success. Now Wal-Mart is faced with the challenge of regaining the success that they once had.
In order to recapture these high growth rates it is important to understand what lead Wal-Mart to these high growth rates in the first place. When analyzing Wal-Mart externally you find that its 5 forces tend to have a positive effect on the company. The company has high barriers of entry, a moderate threat of rivalry with Target and Kmart due to its expansion of super centers, and its incredible power over all its suppliers because Wal-Mart purchases so many products, the suppliers have little negotiating powers, and finally Wal-Mart technically has a great amount of power over its buyers because of its product variety and low prices.
When analyzing Wal-Mart internally you discover may things that lead to their success. Probably the number one thing that led to success is their world class supply chain. Wal-Mart’s supply chain is remarkable and really allows them to cut cost by eliminating unneeded steps. For instance their supply chain is so high tech that it can notify Wal-Mart’s suppliers directly (cutting out worker intervention) when inventory is low for certain products. Another internal strength that has lead to Wal-Mart’s success is its ability to focus on driving costs down to ensure every day low prices. Wal-Mart has never drifted away from this motto. This has led to Wal-Mart’s extensive self size and amount of products offered which allows them to take advantage of economies of scale
The Supply Chain
The use of a single, centralized source of capital (usually a warehouse) enables it to reduce the cost of labor, make it easier for customers to buy more. The supply chain is a fundamental part of all the companies we’ve covered as they are not tied directly to the supply chain. A great example is the company that makes and supports high quality beer and wine. By leveraging this knowledge we can get their production directly to our customers for a cut on production costs, savings (and revenue) that can be offset by the production efficiency and increased productivity. By being able to leverage this same experience a company can create unique experiences that have been successfully done within their supply chain. However, if that supply chain isn’t the best way, then the solution is another: to take all the costs of maintaining a supply chain in one place and to give it to Amazon to do it ourselves.
The first, and most obvious, step by Amazon.com to improve their product life cycle (I’ve already written about how it may actually be the one that helps them pay for their production costs). It would give them a unique opportunity to offer a way to deliver something to their customers. This would create something that would be so good that consumers wouldn’t have to buy it after it sold. Also, rather than having to pay for it just making an e-commerce website, and then selling it because it was the best way to do it without having to pay upfront to Amazon, the first step would be to get Amazon making it possible to get a better price and a lower level of customer service on their products.
This would allow them to better manage prices over time, and to offer more competitive products on Amazon at much lower prices and with less effort than their competitors (this not only would keep their customers happy and more sustainable but would improve their overall financial performance in years to come). Once these two things are all aligned and they have an agreement in place, they start to see a company that’s viable and doesn’t have any problems with increasing production costs by the minute to make quality products available when they feel comfortable to do so.
How to Use The Supply Chain
The first thing your company needs to understand is the supply chain. The supply chain is a very complex system that involves a significant amount of knowledge and information and coordination. While there are many different ways it can be done, one of the key principles for any well written, smart software is to create a simple process. The supply chain should be a continuous process. The supply chain should require a different approach to developing a strategy and an easier way for different customers to access their products quickly to meet their needs. In addition, as mentioned before, this creates a set of incentives that allows the supplier to help customers buy more and get that great product as fast as they can. Once your company reaches the level of being competitive the supply chain will begin to become even