Wal Mart Major Competitive Core Competence Is Its Superior Logistics System

1041 words - 4 pages

You see it everywhere in magazine articles and advertisements, but what exactly is a core competence? At its simplest, a core competence is a unique capability that affords some type of competitive advantage. It corresponds to a business process, and involves underlying skills, functions, systems and knowledge. To determine if something is of core competence, one must ask, "Does this 'thing' give the company a unique advantage over its competitors and help make the company profitable"? Capabilities, on the other hand, refer to a firm s skill at effectively coordinating its resources. In other words, resources are the source of a firm's capability; and capabilities refer to a firm s ability to bring these resources together and to deploy them advantageously. Every organization possesses many capabilities that enable it to perform the activities necessary to provide its products or services. Some of these activities may simply be performed adequately, while others may actually be performed rather poorly. However, successful organizations conceivably possess certain capabilities allowing them to perform key activities exceptionally well. Moreover, these are the distinctive capabilities that support a market position that is valuable and difficult to imitate.At Wal-Mart, its major competitive core competence is its superior logistics system. Wal-Mart 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 retail distribution system known as a Retail Link. No other mass retailer or trading community - domestic, foreign, or global - has developed a system even close to Wal-Mart's capabilities in supply chain and distribution management and optimization. However, the possibility of competitors having allocated significant resources to developing state-of-the-art data warehouses that, like Wal-Mart's, goes beyond collecting point-of-sale data to drive replenishment, exist. In looking at Wal-Mart more closely one realizes that since Wal-Mart is a traditional company its core competence is its supply chain. Wal-Mart maintains a win-win situation with its suppliers since they order large quantities and they represent one of the largest customers for their suppliers.Wal-Mart has an excellent warehouse and inventory management system on hand, a segment of the value chain system, and hence they are able to stay ahead of their competitors. Their IT focuses on data warehousing and improving their inbound and outbound logistics. Also their shipping and order processing to each of their different store locations is done by applying 'Just in Time' inventory. Promotions are a big deal for Wal-Mart. Their heavy reliance on advertisement to boost their sales and increase their number of customers has lead them to their current position in the market. Their IT helps them determine which products are the most popular to the customers, and thus they are...

Find Another Essay On Wal-Mart major competitive core competence is its superior logistics system

Wal-Mart and its Affect on the American Economy

1579 words - 7 pages connotation that comes with the Wal-Mart name can more so be contributed to the non-objective critic’s portrayal of the corporation. When people start to look at the facts of the Wal-Mart situation it becomes more apparent that Wal-Mart does have positive impacts on the economy and communities it inhabits. The first major criticism that was discussed in the previous paragraph is the claim that Wal-Mart mistreats its workers through providing employees

How Can Chinese Shareholding Commercial Banks Create Competitive Advantage and Build Core Competence? A Case Study: Shanghai Pudong Development Bank.

9098 words - 36 pages secondary and primary data collecting methods. Questionnaire survey in the middle-level managers and personal interviews portray the competitive position, core competence, CSFs of SPDB and strategic alliance between SPDB and Citibank, which describe the competitive environment that SPDB is faced with.The author hopes this research has some implications for Chinese Shareholding Commercial banks to keep their competitive position and build their

Wal-Mart is the Enemy

1514 words - 6 pages over the years into a 256 billion dollar company after making its name across the world in 1915. The major problem with Wal-Mart is that it maintains its own mini-economy. Some people believe Wal-Mart supports the American economy while most others hold that Wal-Mart’s global outsourcing will and has damaged the economy over time. When comparing these two opposite points, Wal-Mart has and is continuing to be more destructive than constructive to

Wal-Mart is a Menace to Society

1036 words - 4 pages society itself. Wal-Mart will learn its lesson, even if it is at the expense of others. Works Cited De Coster, Karen., and Brad Edmonds. "The Case for Wal-Mart." Kirszner and Mandell 631-36. Kirszner, Laurie G., and Stephen R. Mandell, eds. Patterns for College Writing: A Rhetorical Reader and Guide. 11th ed. Ed. Laurie G. Kirszner and Stephen R. Mandell. New York: Bedford, 2010.

Core Competence is the secret to success: it cannot be replicated.

1603 words - 6 pages major bookstores, and how their first mover advantage has been so beneficial to them.We have touched upon the fact that once we have identified our core competence we need to find a way to sustain this, after all it is no good to develop a competence only to find that your competitors have managed to catch up and have narrowed your advantage. For a core competence to be enduring and giving you the competitive advantage you have worked at this

Wal-Mart: is it the source of all evil in America?

601 words - 2 pages Based on the reading that I have done, my position on Wal-Mart is that the benefits to Wal-Mart's consumers outweigh the negative effects of Wal-Mart's business practices. I believe this for several reasons, which I will explain.One reason for my position is because Wal-Mart can offer lower prices than any other major retail store in the world. They can do this because of the demands on their suppliers. Wal-Mart will accept nothing but the

This case study is based upon the case article by Peter A. Stanwick and Sarah D. Stanwick titled; ‘Wal-Mart: But We Do Give Them a 10 Percent Employee Discount’, in which addresses the ethical issues...

1472 words - 6 pages paid a fine of $ 11 million in a settlement with the government on the charges brought against them for using illegal aliens to clean its stores, (p. 418).Issues relating to Child and Labor lawsThe last issue the authors discuss is that relating to "Child and Other Labor laws" (Stanwick & Stanwick, 2009, p. 418). During a weeklong audit of Wal-Mart in July 2000, more than 13,000 violations of the child labor laws were found. Also found were more

In the short story collection: Summer Lightning by Olive Senior, the child is a major device for analyzing the society which disrupts and destroys its world. Discuss using at least 3 stories.

1820 words - 7 pages ', it still has a very profound and negative affect on society.However, in the final story analyzed: 'Confirmation Day', the young girl in contradiction to the other two protagonists, has been salvaged in order for Senior to make her input upon conventional religious views showing that religion and God should be treated not as fearsome and rigid but instead as empowering.Thus, in Summer Lightning, the child is indeed a major device for analyzing the society which disrupts and destroys its world.

This is a paper that I did in English Comp 2. It is in you Literature book. Its about a story on A&P, represents the American Middle-Class Value System.

521 words - 2 pages System.The character that represents the opposition of the system and its values is Queenie. Queenie presents her "own values" when she walks into the A&P. She is the total opposite of what is expected in the values of both the store and the town. Oueenie portrayed the character of a leader, unlike the "sheep" that were a part of the A&P value system. Queenie represents anti-dress code, anti-modesty, and pro-sex. After walking into the store

Wall-Mart Case Study

3883 words - 16 pages , and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA). The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement. A focused strategy is in place for human resource

Wal-Mart Case Study

817 words - 3 pages : specific organizations that offer the same or similar goods and services to the same consumer or client groups. Target and K-Mart are Wal-Mart's major competitors. A Company has an obligation to act in ways that serve both its own interests and that of its stakeholders. This is known as corporate social responsibility.A SWOT analysis examines organizational strengths, weaknesses, environmental opportunities, and threats to that company. A major

Similar Essays

Wal Mart Competitive Core Competence Essay

5614 words - 22 pages plagiarism . If you are using ideas, diagrams, models, tables, quotations or ANY other material from a published or unpublished source, you must give details of that sou rce. Use the referencing system recommended by the library , and if in doubt ask a tutor for clarification. To fail to credit your sources is plagiarism, which is an assessment offence according to the regulations of the University. We use plagiarism detection software to monitor this

Wal Mart Measures To Sustain Its Recent Performance And Defend Against Competitive (And Other) Threats

729 words - 3 pages cost advantage. If rivalry within the industry increases and companies start to compete on price, Wal-Mart should be able to resist competition better than the other companies because of its lower costs. This low-cost competitive advantage, or distinctive competency, is Wal-Mart's advanced inventory control system. The danger that still exists for Wal-Mart is the competition can easily imitate Wal-Mart's methods. This is already apparent with

Wal Mart And Its Market Struct Essay

602 words - 2 pages never catch Wal-Mart is by looking at their sales volume over the years. In 1994, Wal-Mart sales volume exceeded the combined sales volume of Kmart and Sears, the number two and three retailers in the nation, respectively. By 1996, Wal-Mart sales volume exceeded the combined sales volume of Sears, Kmart, and Target. Wal-Mart's stranglehold on its competition has continued to grow constantly over the years.As if Wal-Mart's domination of discount

Wal Mart?S Smart Inventory System Essay

695 words - 3 pages After extensive last minute digging, I finally found a manager who trusted me enough to supply me with the name of the inventory system that is used. Unfortunately for me this is all I could uncover from my employer, but it is a start. Wal-Mart uses the SMART system. Because of the way it is spelled I can only assume that it is an acronym. I have been searching for over an hour on Google.com and finally produced some meager results, but here