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).
1. Key changes in Walmart strategic position The key changes that Walmart is facing toward their strategic position are external changes, and the changes identify are: ● The competitors, especially Amazon in the e-commerce and now they are penetrating the physical retail segment. ● The rise of the internet in the past years, which is changing the retail business. ● The customers moving online. To analyze this challenges the paper will present an external analysis, industry analysis with and internal analysis, to identify how the competitive advantage regarding this framework would help Walmart to improve their strategies.
Through this model, investors have an opportunity to evaluate the market position of the company through is effective and strong performance. Strengths Globally recognized – Wal-Mart has been in the retail business since the year 1962, and most of its efforts are dedicated to ensuring that it provides quality products to their customer and this has made them be a global brand. As a result, the strong market position of the company is its main strength. Competence in technology – Wal-Mart has effectively and efficiently managed to integrate technology in most of its operations. 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.
However, it is not yet clear if the company satisfies the live better component of the mission statement. There are criticisms on Walmart’s very low wages that are barely enough for employees to make ends meet. There are also criticisms about the long-term effects of the firm’s continued large-scale sales of cheap and sometimes hazardous imported
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.
• Domestic markets moving towards saturation • Domestic market (US) accounts for a small percentage of world’s population. • Walmart perception was discount retailing is essential for the developing economies and hence they achieve the double digit growth rates Advantages • Leverage local buying power with US based MNC’s. • Utilize competencies of efficient store management, technology & logistics. When Walmart expanded
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.
In the case of “Environmental Awareness” Walmart has really tried to promote social responsibility in their companies, focusing on promoting environmental cleaning and care of the land air and water. Are the benefits of its more recent corporate citizenship programs offset by the company´s detrimental impact on merchants? We think so, because the company has millions of supporters, Walmart draws 100 million customers every week. Many consider the company to be socially responsible in addition to being a provider of thousands of jobs, low prices, and high value and service. Walmart has numerous corporate citizenship initiatives at the local and national levels.
Assignment No. 1 February 9, 2016 Question 1 Company Name: Walmart Stores Inc. Walmart is one of the biggest American retail companies which is famous for discounted consumer products. It operates in more than 25 countries throughout the worlds with as high as 2 million employees. In order to meet the demands of its growing customers, Walmart relies on various domestic suppliers for its products. On Walmart’s website, www.corporate.walmart.com/policies, we will find the company’s policies and guidelines.
In regard to their inventory turnover ratio, compared to competitors, they are able to cycle through their inventory faster than other major competing retail brands. This demonstrates a major advantage for Walmart. Consumer 's needs are the main priority of the company, which they demonstrate through their low prices and lenient policies. Although Walmart has