Green was promoted to senior marketing specialist; giving him legitimate power. He also has expert and referent power bases. Green is an expert in the field of sales and this is demonstrated by growth in his division. This brought him to the attention at the corporate level. He is well liked and respected by the sales people in his division (Sasser, 2008).
Wal-Mart is a large store with an open floor plan with room for more than one shopping cart in an aisle, but K-Mart is a smaller store than Wal-Mart with smaller floor plan with space for only one shopping cart. Wal-Mart has variety of products like jewelry, apparel, food, home essentials, medicine, etc. K-Mart sells most of the same items but there is not as much of a selection as what can be found at Wal-Mart. When someone usually goes into Wal-Mart they will see it usually stays stocked most of the time, but when someone goes into K-Mart they will see empty spaces on the shelves. Wal-Mart is basically a store where someone can buy everything unlike K-Mart.
What is Wal-Mart’s distinctive capability? Wal-Mart has the goal of providing "quality goods at low prices, responsible manufacturing, and opportunities for growth. Due to their expansive nature and broad customer base, they are able to provide a large discount on many of their products. They are also the leading employer in the United States of African Americans, Hispanics, women and senior citizens. What business are they In?
It expands by “pushing from the inside out” and diverse itself into different store formats. It forges partnerships with vendors, streamlines warehouses and distribution centers, and promotes its own brands. The resources that Wal*Mart invests most heavily in are its people. Wal*mart acknowledges its manpower as one of the most important resources by providing attractive salary package, profit sharing program, extensive trainings,
WALMART STORES: “EVERY DAY LOW PRICES” IN CHINA Question 1 Why is Wal-Mart successful in the US? * Focus on price and service – Providing the best quality goods at the lowest price in a friendly environment. Wal-Mart is well-known for selling brand name products for less. Moreover, providing great customer service, showing respect for the individual and striving for excellence become its organizational culture, which has been carried out through the company’s history and been followed by employers as well as employees, no matter what the location is. * Successful marketing to attract customers.
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
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. Its wholesale brand, Sam’s club, offers customers conveniences such as parking and large “warehouse-like” shopping spaces with high ceilings. Besides, an efficient logistics’ system, Walmart, because of its size, has the ability to eke out the lowest prices from its suppliers, while simultaneously encouraging its suppliers to innovate new products and produce those products in large volumes. So, on a macro level, Walmart seems to have the correct strategy in the United States as far as promotion, price, product and place are concerned (4P’s of marketing). One of the main reasons for Walmart’s lack of success in other countries is in trying to impose American values, cultures and shopping habits in other countries.
Customers also place a high importance on the quality of product so because Penn offers a high quality product it is able to attract and retain customers. The low rivalry of competitors is a great strength for Penn National Gaming. It offers Penn the opportunity to grow in different markets and expand its business across the United States. Also because of the low number of competitors it makes it easier for Penn to keep a close eye on the competition’s products and pricing which will allow Penn to strategically alter its own products and pricing strategies. The threat of substitutions is high especially for the gaming industries which Penn National Gaming operates in.
Wal-Marts ability to maintain and gain customer loyalty while using its low cost structure has made Wal-Mart extremely and consistently successful. In order to support their business model and cost leader business-level strategy, Wal-Mart focused on their functional-level strategies as well as corporate strategy. Six strategies they pursued included: product pricing, materials management, vertical integration, diversification and acquisitions, customer responsiveness, and human resources. Innovation in Product Pricing: Wal-Mart used innovative strategies across its entire business model. Wal-Mart pioneered the use of information systems to manage supply and delivery of products, product mix, and product pricing.