Wal Mart. Essay

980 words - 4 pages

No other mass retailer or trading community -- domestic, foreign, or global -- has developed a system even close to WalMart's capabilities in supply chain and distribution management and optimization. From 1987 to 1993 WalMart spent over $700 million on its satellite communications network, computers, and related equipment. However, the possibility of competitors having allocated significant resources to developing state-of-the-art data warehouses that, like WalMart's, go beyond collecting point-of-sale data to drive replenishment. The new data warehouses address and understand demographics, individual stores, and customer preferences. To continue to maintain IT as a strategic advantage, WalMart must continue development to further increase the effectiveness and efficiency of its supply chain management systems, to advance the development of its distribution management system, and add new capabilities as the technologies and customer service opportunities arise.In looking at WalMart more closely we realize that since WalMart is a traditional company its value chain is its supply chain. In order to strengthen its value chain we must focus on strengthening components in their supply chain. As we further analyze the company, WalMart maintains a win-win situation with its suppliers since they order large quantities and they represent one of the largest customers for their suppliers. If we were to analyze WalMart like any other company and focus on its value chain rather than supply chain, WalMart still comes out on top. And more customer service.Walmart is one of the biggest global retailers in the world, operating in several different countries around the world, with multiple formats, all tied together by a state-of-the-art retaildistribution system known as a Retail Link. The corporation typically seeks market areas where there is a customer base of 5,000 to 25,000 and targets small to medium-sized towns in particular. Historically, the corporation avoids big city markets where land prices may be too high and competition from other large retailers much stiffer. Instead, Wal-Mart's strategy has been to locate in peripheral, semi-rural areas or city outskirts where it may draw from a regional clientele.Some of WalMart's sustainable sources of competitive advantage lie largely in their goal to providing their customers with the "Everyday Low Prices." This assurance along with the fact that they are willing to match or beat any of their competitors prices leads their customers to place more faith in WalMart. WalMart's aim to always serve their customers with a smile as well as always be of assistance is another reason they are able to stay ahead of their competition. Sticking steadfastly to the two rules of thumb on customer satisfaction and low price guarantee has lead WalMart to become the leader in their competitive industry.RelationshipsDescriptive statisticsSome of the key strengths of WalMart are in its value chain activities, most importantly...

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