Wal-Mart
Quoc Vo
GM 105
Short Assignment #1
09/09/2014
Wal-Mart Case The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in general merchandise retailing; against Costco in the warehouse club segment; and other Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Wal-Mart with a marketing slogan which is “Lower price” and promotional strategy “Everyday-Low-Price” has bring to the market the huge opportunities for consumer. I used to hear this statement, “Since Wal-Mart opened, there are a lot of farmer markets and other retailers have closed.” When I looked back, this statement could be true. Because of the core of Wal-Mart’s strategy is overall low-cost leadership. It is even cheaper than the same thing is on the famer market or other stories. The Wal-Mart’s core strategy attracts a broad spectrum of customers by supplying a wide selection of the lowest cost general merchandise. Wal-Mart achieves a cost advantage by controlling its cost drivers and relentlessly wringing cost efficiencies out of its supply chain. On the other hand, Wal-Mart collaborates closely with supplies with strong brand-name that are dominant in their category, who have full product lines, and who can bring in new and better products to retail shelves. Wal-Mart applies information technology (IT), broadly aimed at knowing where every item was at all times in the Wal-Mart system by building automated distribution centers and linking them by computer to both stores and suppliers very early. Additionally, Wal-Mart meets customers’ needs with four different retail concepts: Discount stores, Supercenters, Sam’s Clubs and Neighborhood markets. The historically show that Wal-Mart is on their right track to do what they supposed to do to became
GM 105
Short Assignment #1
09/09/2014
Wal-Mart Case The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in general merchandise retailing; against Costco in the warehouse club segment; and other Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Wal-Mart with a marketing slogan which is “Lower price” and promotional strategy “Everyday-Low-Price” has bring to the market the huge opportunities for consumer. I used to hear this statement, “Since Wal-Mart opened, there are a lot of farmer markets and other retailers have closed.” When I looked back, this statement could be true. Because of the core of Wal-Mart’s strategy is overall low-cost leadership. It is even cheaper than the same thing is on the famer market or other stories. The Wal-Mart’s core strategy attracts a broad spectrum of customers by supplying a wide selection of the lowest cost general merchandise. Wal-Mart achieves a cost advantage by controlling its cost drivers and relentlessly wringing cost efficiencies out of its supply chain. On the other hand, Wal-Mart collaborates closely with supplies with strong brand-name that are dominant in their category, who have full product lines, and who can bring in new and better products to retail shelves. Wal-Mart applies information technology (IT), broadly aimed at knowing where every item was at all times in the Wal-Mart system by building automated distribution centers and linking them by computer to both stores and suppliers very early. Additionally, Wal-Mart meets customers’ needs with four different retail concepts: Discount stores, Supercenters, Sam’s Clubs and Neighborhood markets. The historically show that Wal-Mart is on their right track to do what they supposed to do to became