Walmart vs Target

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[Type the company name] | Research Project | Wal-Mart and Target | | | 4/14/2011 | The document presents an overall research of two major retail stores in the Unites States: Wal-Mart and Target. It presents information regarding their business strategies concerning manufacturing and distributions channels, identify their comparative advantages, recognize new goals, compare their strategy marketing strategies and ethical values, and a final comparison and identifying who is the benchmark. | Wal-Mart Wal-Mart Stores, Inc is a multinational corporation that consists of 8,500 retail stores across the United Sates and 15 other countries. The company was founded by Sam Walton in 1962 with the philosophy of high volume low cost items in small towns. It later expanded to cities to gain more market share. Wal-Mart then began expanding their product variety to food, cloths, medicine, entertainment, etc. Currently, it is the number one discount store. Target Corporation was founded in Minneapolis, Minnesota in 1982. It first opened in 1962 as Dayton Hudson Corporation, but was later changed to Target Corporation in 2000. It is the second largest retailer in the United States. 1. Business Strategy: Distribution channel and manufacturing While Wal-Marts’ competitors use twenty five percent of their stores space for inventory storage, Wal-Mart only needs ten percent. This is because of their distribution channel which consists of just in time inventory (JIT) and cross docking. This means that products are received just in time in one side of the warehouse and are sent through the other side. Consequently storage of inventory is eliminated. Following, the products leave the warehouse to replenish the stores within twenty four hours. This can be done because each store is within a twenty four hour drive away from the distribution center and with the

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