walmart Essay -- essays research papers

Describe the nature of the manufacture in which Wal-Mart make dosThe discount retailing industry, in which Wal-Mart competes, suffered slower growth in industry sales and in new store increases by reaching maturity. This resulted in a shakeout that has left the industry very concentrated. These trends are likely to stick due to intensified competition goaded by companies seeking to refine market share by gaining efficiencis and economies of scale in distribution and purchasing. Indeed, in 1993 the top 5 discounters accounted for over 70% of total industry sales. Consequently, barriers to entrance are high. Other barriers to entry include the high capital intake requirements of leasing or sullying the stores promotional make up vast capital costs of leasing or buying warehouses and distribution channels in order to buy and store the product costs of training and hiring the work-force to provide high-quality customer service. Fin every last(predicate)y, the little terror of subsitution is high, for all the merchandize is readily available at many types of stores this reinforces the need to compete on prices, costs and customer-focus. As growth in this industry slowed securing much market share is the critical way to compete as scarce then are you able to leverage your economies of scale to build cost advantages.The nature of Wal-Marts competitive priorities are based on the foundational of minimizing all its costs vis--vis its competitiors so that it may provide the lowest cost merchandise, and thereby boost its market share. Wal-Mart aims to differentiate itself, and enhnce its competitiveness, by making technology, its in advance(p) computer and telecommunication system, a core competency. This maintenance of superior technology greatly enhances Wal-Marts ability to focus on building and maintaining relationships with its customers, suppliers and employees for example, it cuts down on unnecessary large inventory levels and enables intimate and ti mely contact with suppliers. Wal-Mart get on competes on cost, place of the dollar philosophy, and in like manner performance quality, by adding value through its training program and its corporate culture which increases customer satisfaction. However, Wal-Marts management which initially portrayed itself as the lowest cost supplier had to change this policy partially because it becam... ...r relative to its suppliers, Wal-Mart was able to implement and do radical cost-cutting measures these included saving realized by eliminating manufacturers representatives from negotiations with suppliers by making its vendors pay for communicating expenses. Wal-Marts decentralized, incentive driven corporate cultural program is also a major addition in reducing costs for, despite non-unionization, employees assisted in realizing savings and in keeping shrinking costs below their competitors. This program also raises employee satisfaction, and probably reduces employee turnover (thereby r educing costs for training new workers), and boosts customer satisfaction. Wal-Marts hihgly-automated two-step hub distribution network, involving greater supplier participation, and usage of techniques such(prenominal) as cross-docking enabled the company to utilize even quicker inventory hold in (resembling a manufacturing firms JIT). Finally, even the location of the distribution centers and stores, which were assort together, enhanced the speed with which inventory was managed. It also meant that trucks could be used which shape up reduced costs and increased reliability and speed of service.