The company engages in both traditional stores, which involves discount stores, neighbourhood markets, supercentre and express stores and e-commerce on the other hand. It is worth noting that most of the company’s sales are from the physical stores. However, its website allows a customer to buy online besides providing current information on weekly discounts, manufacturer’s coupons, finding the closest store, provision for signing up for a newsletter and so on. Walmart’s stores are easily accessible to the customers. The customers are free to contact the company twenty-four hours a day and seven days a week and this has greatly contributed to customer
It may also grow stronger and more unique through competition between firms in the same industry. Wal-Mart is a powerful and influential grocery store in America and even in the world. It has a good reputation in terms of convenience, variety and good value for money. The greatest strengths of Wal-Mart are “the consumer understanding of low prices, their market clout, their competence in information technology, and their wide store and distribution network” (Internal Analysis of Wal-Mart 2015). The company has built good reputation among consumers during several decades’
This has helped Walmart to become a dominant retailer in the global arena. With the rapid increase and evolving of technology Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency. Conclusion The evolution of Walmart’s supply chain includes three elements, according to an Arkansas Business article: distribution practices, operating its own fleet of trucks and technology. Benefits from its supply chain efficiency result in time savings, more cost-effective inventory management and improved product forecasting. Walmart demonstrates the complementary use of lean and agile design principles hand in hand when designing a supply chain that is highly efficient while Walmart uses inventory optimization and transportation optimization processes to reduce the costs (lean), it also uses cross-docking to actively respond to the latest store demand (agile).
Locating the stores in low-rent suburban areas, that are close to major highways, ensured that they could build more stores at lower costs. Unlike their close competitor, Kmart, that placed its stores in prime urban areas, Wal-Mart’s network grew widely covering a lager geographical area. Thus, Wal-Mart is able to enjoy a larger customer base at lower costs compared to its other
Competence in information system has enabled the company to establish a successful supply chain and logistics thus, saving a significant amount of cost to manage its inventory levels, sales and other crucial information and data. Product differentiation and diversification - as a competitive strategy, the company has invested in more than one product to ensure that there is no single moment in time that it will be out of business. Besides, the company offers broad range both branded and ow2n label products to its
Another cons about Walmart is that it’s been too diverse. They invested so much companies throughout other countries such as Mexico, Brazil, United Kingdom, and China. These attributes all have pros and cons due to the fact that it’s in a different country. It is true that the economy is increasing by every second, but also problems are easy to see throughout the
Using the franchise agreement, it’s a decision made by our company to take this step forward. Advantages to owning a franchise of Walmart:- i. We receive a specific level of independence to run the business. ii. Opportunities to realization and success are high because we’re dealing with a well-known service and goods line.
Furthermore, as a company's scope increases, it may have to distribute its goods and services in progressively more discrete areas. This can increase average costs resulting in diseconomies of scale. Some efficiencies and inefficiencies are more location specific, while others are not affected by area. If a company has many plants throughout the country, they can all benefit from costly inputs such as advertising. However, efficiencies and inefficiencies can alternatively stem from a location, such as a good or bad climate for farming.
Also, its size allows the company to advantage from economic of scale, which in time conduce to a lower price of products for the final consumer. 220.127.116.11. Wide range of products The retailer sells a bigger variety of products than any of its retail competitors. Grocery, health and wellness, apparel, entertainment, electronics and so many other products are sold in its shelves. Also it is remarkable the fact that Wal-Mart sell both, brand products and own label products, that are even cheaper.
Of late, the profile of the customer is changing and now the buyer is turning into a man who settles on thought choices in light of his way of life yearnings and his ability to take his piece of obligation to deal with natural effect. Thus there is a desire that organizations do likewise in their items and administrations. Below is the SWOT analysis for Walmart keeping in mind the current strategies? Strengths - Cost advantages over rivals. - Distinctive competence in distribution systems; computerized and productive circulation of merchandise into its stores, from makers to its armada of conveyance trucks that made every day conveyances to encompassing stores.