Walmart Supply Chain Managment
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Also, RFID could possibly be a threat to Wal-Mart by ruining relationships with suppliers. This system promises to do a great deal for supply-chain management. However, there is always the possibility that technology promises more than it can actually offer. Some manufacturers of low-cost consumer products may not see the advantages of implementing such a syA major threat to Wal-Mart is the areas that they are expanding into may not be easily attainable. It will be difficult for them to gain a good part of the market share of hard-line products such as home improvements. These areas have greater competition and Wal-Mart does not have a clear cost advantage. International expansion may also create slow or rough short-term growth. The international market is predicted to have excellent long-term growth success, but these earnings may not be seen in the near future. Also, Wal-Mart has huge expansion plans that are very public. “If these stores do not open on time, or are subject to delays and build issues, then analysts predictions will not be met and share price may suffer” (“Wal-Mart Company Profile” 9). On the contrary, if Wal-Mart successfully meets all of its deadlines, investors may still be hesitant to invest in their company. In the past, when retailers meet their expectations, and the economy is doing well, they tend to under perform. Also, two of Wal-Marts main product lines, apparel and food, are very slow growth sectors, and Wal-Marts dominating position in the industry may make investors believe there is little room for the company to grow.
Wal-Marts image has been seriously threatened by the numerous accusations of being “bad for the country” (“Two Public Relations” 1). The documentary movies that are being produced could seriously hurt the companys sales, especially since they are being premiered right as the holiday shopping season is starting. The shopping experience some customers have at their store is also a threat to Wal-Mart. Customers are often complaining about the long checkout lines and the insufficient quality of the products that are offered. Once this idea is spread throughout a community, it is difficult to change the publics opinion.
Also, RFID could possibly be a threat to Wal-Mart by ruining relationships with suppliers. This system promises to do a great deal for supply-chain management. However, there is always the possibility that technology promises more than it can actually offer. Some manufacturers of low-cost consumer products may not see the advantages of implementing such a system and not want to comply with Wal-Marts mandate for the new system.
Recommendations
Wal-Mart has been extremely successful in the past, and has a very promising future ahead of them. Unfortunately, there is always a negative