walmart Essay -- essays research papers

Describe the nature of the industry in which Wal-Mart competesThe discount retailing industry, in which Wal-Mart competes, suffered poky growth in industry sales and in new butt in increases by reaching maturity. This resulted in a shakeout that has left the industry very concentrated. These trends atomic number 18 likely to continue due to intensified competition driven by companies seeking to expand market share by gaining efficiencis and economies of scale in scattering and purchasing. Indeed, in 1993 the top 5 discounters accounted for over 70% of total industry sales. Consequently, barriers to entry are high. Other barriers to entry include the high capital use requirements of leasing or buying the stores promotional be 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 propose high-quality customer service. Finally, the threat of subsitution is high, for all th e merchandize is readily avail up to(p) at many types of stores this reinforces the need to compete on prices, costs and customer-focus. As growth in this industry slowed securing more market share is the critical way to compete as only 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 advanced computer and telecommunication system, a core competency. This tutelage 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 timely dawn with suppliers. Wal-Mart fur ther competes on cost, value of the dollar philosophy, and also 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 provider had to change this policy partially because it becam... ...r relative to its suppliers, Wal-Mart was able to implement and enforce subject 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 ethnical program is also a major asset in reducing costs for, despite non-unionization, employees assisted in realizing savings and in keeping lessen costs below their competitors. This program also raises employee satisfaction, and probably reduces employee turnover (thereby reducing costs for training new workers), and boosts cu stomer satisfaction. Wal-Marts hihgly-automated two-step hub distribution network, involving great supplier participation, and usage of techniques such as cross-docking enabled the company to utilize even quicker inventory control (resembling a manufacturing firms JIT). Finally, even the billet of the distribution centers and stores, which were grouped together, enhanced the speed with which inventory was managed. It also meant that trucks could be used which further reduced costs and increased reliability and speed of service.