Technologies such as UPC scanners, RFID tags, Retail Links, and MCAPS allowed them to efficiently manage their supply chain and reduce shrinkage; as a result Wal-Mart provided their suppliers with point-of-sale information so that the suppliers could in turn plan their production runs accordingly and keep their own prices competitive. Due to its high-volume purchases (and sales), the company was able to exercise sufficient power over its suppliers to negotiate favorable payment terms; suppliers were credited at the time of sale. This resulted in the suppliers retaining ownership of their products until goods were sold at which time the accounts-payable term began. The combination of the two—high-volume purchases and sales, and delayed accounts payable—allowed Wal-Mart to improve its inventory turnover while
(Strategy Development Group, Inc, 2002) K Mart’s product line includes Joe Boxer, Route 66, Wrangler, & Martha Stewart products. (CBS Interactive, 2011) These product lines give K Mart a competitive advantage unlike Wal-Mart and Target. Additionally, K Mart would be wise to include more product lines geared more towards their market segmentation. Other competitive advantages include K Mart’s loyal customer base. Frequent shoppers often have a resistance to new discount stores.
Strengths Wal-Mart has a profusion of strengths which is apparent due to its outstanding success. This retailer is the largest in the United States and a place to get a respectable job without a college degree. Criticisms have been made how Wal-Mart pays low wages, but this still gives people jobs and being employed is important in this economy. Wal-Mart beats the competition by saving families hundreds if not over a thousand dollars a year with their aggressively low pricing strategy. Slashing prices as they have over the many years lures in consumers to bring in more sales.
Running head: Wal-Mart Case Study 4 July 2010 Abstract Wal-Mart is the largest company in the history of the world. Wal-Mart is viewed as the best supply-chain operator of all time (Fishman, 2006). Efficiency is a key factor in maintaining their low-prices and gives them the competitive advantage among other retailers. Wal-Mart’s margins are lower than other retailers' because they have a well-organized supply chain. They operate one of the largest fleets of trucks on the planet to take over deliveries from its suppliers.
Because of this, I believe the internal resources and capability analysis concept is appropriate and useful when applied to the particular case of Wal*Mart. On the other hand, Wal*Mart’s superiorly developed resources and capabilities would be a great potential for it to differentiate itself from competitors. I feel value chain analysis is a suitable methodology to analyze and recommend how Wal*Mart can differentiate itself and sustain its competitive advantage. In the case, I can see that Wal*Mart puts quite an emphasis on finding and developing its resources. It expands by “pushing from the inside out” and diverse itself into different store formats.
Marketing – Summer 2013 (Assignment 1: Walmart Case; Submitted by: Rohan Saldanha) 1. What are Wal-Mart’s key success factors in the United States? Evaluate the difficulties in transferring these key success factors to other nations? Walmart has been a success in the United States due to a variety of factors. Firstly, most of its supercenters are about 185,000 square feet and offer a plethora of groceries, electronics and other consumer goods at prices that are rarely matched.
Another lucrative business opportunity is the increase of customers that would not be possible if it were not for the draw of the big stores. Payless Shoe Source is an example of a smaller store, though it is a chain store, located next to many Wal-Mart and Target
They no longer accepted stale-dated groceries that were offered in some Loblaw’s Superstores. These kinds of time-sensitive products required the company to stock and manage inventory better. However, this also opened the opportunities for the company to sell more organic and traditional food items. 2.1.2. Competitors The biggest competitor facing the company was Wal-mart.
A commitment to nutrition without compromising taste or quality remains at the core of its business philosophy. The largest market for the company is North America, accounting for 68% of total sales with the European market coming in second at close to 19% of total sales. Kellogg’s expands and adjusts its portfolio to meet the changing needs of its customers worldwide, introducing new products on a routine basis. Market research indicates that consumers demand more convenience as lives become more hectic. This market plan will focus on the introduction of a new cereal product that is easier to take and eat on the go, but just as nutritious and appetizing as one enjoyed at the breakfast table.
For example, we launched our loyalty scheme Clubcard and Tesco.com, our internet home shopping service.Going the extra mile for customers has been key to our growth. We want to make customers' lives easier and better in any way we can. We want to appeal to every customer and give them a reason to come back to Tesco. History and backgroundTesco plc (LSE: TSCO) is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart).