Walmart Goes to China Essay

965 WordsNov 22, 20134 Pages
------------------------------------------------- IBUS 5701A ASSIGNMENT # 1 November 10, 2013 SPROTT SCHOOL OF BUSINESS November 10, 2013 SPROTT SCHOOL OF BUSINESS DAISHIK DESAI CARLETON ID # 100941367 Question 1 Walmart is the biggest retail stores in the US and Canada, and there are reasons why it is the best retail stores, in fact there are always reasons why any company reaches that number one spot. The first Wal-Mart store was opened on July 2nd 1962 in a small town of Rogers, USA. Ever since its first store, Walmart has adopted this concept of targeting small towns with a small population and setting up stores before their competitors in these areas which has led to the enormous success of Walmart. Another reason why Walmart is successful in the US is that with the ever increasing changes in financial trends and rising costs of living, Walmart has focused on two major values drivers- Price and Service, which is exactly what customers expect from any organization. There are four key sources for Walmart’s competitive advantages: Successful Vendor relationship, efficient communication network, Value employees’ most, and efficient operation management which all leads to one thing- Low cost. Walmart is a no-nonsense negotiator and deals with suppliers who would give them goods at the lowest prices which leads to efficient purchasing. Walmart emphasizes a lot on customer and employee satisfaction which gives them the edge over their competitors, Walmart has its way of motivating its employees by sharing the financial numbers with them and its profit sharing scheme. Another important advantage Walmart has is that it believes in relentless cost control, from its top level management to its associates. Walmart has the most efficient operation management: it has a hub-and-spoke distribution network across the country and has its own warehouses

More about Walmart Goes to China Essay

Open Document