Analysis Of Walmart's Supply Chain Strategy

Vision, Mission Statement "Price Leadership Drives Global Performance" is the Wal-Mart visualization statement. The management of Wal-Mart emphasises on price leadership in every market since pricing strategy is the direct approach to reach performance and attract customers. In order to implement price leadership, they stated "Save Money, Live Better", which remains as relevant now as it was in 1962 by Sam Walton. The mission is that everybody is able to purchase products in Wal-Mart because the stores offers low price products to them. On the other hand, with affection to internal customers, employees and management should reduce cost, and achieve economies of scale, as well as help people who need

Competitive Advantage and Long-term Vision As the Allstar brand continues to be one of the leading Pharmaceutical companies who manufactures quality over the counter (OTC) cold and allergy medicine, our long-term vision is to build and gain a competitive advantage over the top competitor in the business marketplace. By gaining and maintaing a great competitive advantage, this will enable Allround to increase their market share and profitability. One way the company plans on reaching these long-term goals is by investing more in marketing. Focusing on increasing both the direct and indirect sale force. The new merchandisers will provide special support to retailers for their in-store activities, such as shelf location, pricing, and compliance

CEO H. Lee Scott stated that halting the company’s expansion would not eliminate the ability that they had to redesign their existing stores and if the redesign was really even necessary (Ferrell, Hirt, Ferrell, 2009). The company continued their current plans of a new store opening daily, even opening new Supercenters within a short distance of those stores already in existence. Wal-Mart was literally competing against themselves in these market areas. While Target was Wal-Mart’s main competitor, Target specialized in apparel and home goods, while Wal-Mart had an advantage with their grocery department, pharmacy and entertainment. Aligning themselves be more competitive in the grocery store market share, Wal-Mart began offering organic foods in their stores, cheaper than their nearest competitor Whole Foods was doing (Ferrell, Hirt, Ferrell, 2009).

Sam Walton has changed the world with his invention of Walmart. He has always said that “If you sell stuff less, you sell more, and you make more money”(Goldman). His business came a long way from Ben Franklin store to Walmart. One reason why Walmart has impacted the world is because of how many jobs it has given the world. Walmart has given 2.1 million jobs to earth (Goldman).

The article “Labouring the Walmart Way,” author Deenu Parmar talks about how Walmart is able to achieve selling goods at a lower price then any average superstore. The author goes on to explain that Walmart’s antiunion efforts, employee selection, low prices and high retention rate all contribute to their major success. Walmart’s stance on ant unionism allows them to keep wage cost down and keep all their profits up. Not allowing a union keeps Walmart with the power to keep low wages and force unpaid overtime. The author goes on in detail about Walmart’s employee selection process and the unique attributes they look for.

Amazon is number one in competing Walmart especially in online retailer and now opining fiscal stores starting with Amazon Campus store in 2015, available at several college campuses in US the Amazon Campus stores serve as a central hub where student retrieve deliveries from lockers and drop off returns, all free of charge. Over the past three years, while Walmart’s sales grew by 8.6 %, revenue at Amazon has nearly doubled. Then, Costco is also major competitor to Walmart, particularly to Sam’s because of its low price. Costco is high aggressiveness retail firms due it sells

Wal-Mart has been experimenting in smaller places rather than usual big cities. Wal-Mart proclaimed that they are planning to open %40 of their store openings over next years with small store formats. The SWOT analysis indicates us relevant information about the current threats of Trader Joe’s. The threat analysis indicates that there is huge rivalry in the market, having no technology and substitute companies creates big threat. The substitute threat and brand name items are concern for Trader Joe’s and competitive advantage.

Understanding the typology within this industry is imperative either using Porter’s or Miles and Snow. In my opinion, I appreciate Dollar Tree’s current position of being an analyzer in this low-cost strategy industry. Differentiation obstacles do not currently nor are projected to exist within the industry. Nevertheless, understanding areas to become a differentiator in and effort to take away competitor share without increasing product costs is an area I would recommend Dollar Tree distinguish itself. One main aspect that Dollar Tree faces is rebranding the Family Dollar store.

 Walmart was the first retail company to use Hub and Spoke System. In this, the goods are centrally ordered, assembled at a massive warehouse (Hub) and dispatched to individual stores (Spoke).  With advancement in Technology, the Hub and Spoke system was upgraded to another information system called "Integrated Secondary route network design model" connecting hubs through primary nodes and centers using secondary nodes. Implementing these systems enabled Walmart achieving significant cost advantage as they had eliminated wholesalers which saved them 5% sales

Highly competitive pricing for its customers 6. Leading force in a highly competitive Global Market. Walmart’s operations management goal is to maximize productivity so as to support the minimization of costs. There are various quantitative and qualitative criteria or measures of productivity. These are: Revenues per sales unit, Stock out rate and Duration of order filling.