Monday, October 10, 2011

The Successful Cost Leadership Strategies of WalMart

 When you walk into WalMart, the first thing you will notice is that the prices of the WalMart are much lower than those of any other stores. Why does WalMart offer lower prices? What are its strategies in lowering the prices?
   Efficiency in supply chain management: WalMart is incredibly successful in managing its supply chain. WalMart applies the most reliable supply chain management system which is very efficient because almost all product data can be tracked to and from the manufacturer, warehouse, and the store shelf. Efficiency in supply chain system may save WalMart several million dollars as it can prevent losses from faulty product management.              
              
                        WalMart’s strategy in cost leadership
   Efficiency in operations and distribution strategies: OD strategies have helped WalMart achieve low prices- WalMart opens the stores outside of large cities and within 200 miles of existing stores.  By bunching stores together in small areas, distribution costs are below average.  Furthermore, WalMart seeks to meet different customers’ needs with four main distinct retail options; these include discount stores, supercenters, Sam’s Clubs, and neighborhood markets. In addition to that WalMart is trying to open WalMart Express in urban cities where physical space is at a premium.
      Bargain power: WalMart buys its products at rock-bottom prices, exchanges high purchase volumes for low cost while passing the savings onto its customers. The bargaining power of suppliers is weak.  Many suppliers even give in to WalMart’s pressure because they depend on the discount retailer for the majority of their sales. Obviously, suppliers would do what Wal-Mart wanted them to do if they hoped to maintain their sales. Furthermore, the bargaining power of buyers is also weak because there is a very broad base of customers and a significant demand for low prices.  
  Therefore, those are some of top the strategies that WalMart uses to sustain cost leadership position in the value chain market.

23 comments:

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  5. Am pela, thanks to Dr Osaze who cured me of fallopian tube blockage and fibroid with his herbal tuber cleanser. My marriage was on the verge of collapsing, because I was unable to bear a child for my husband. Until I came across Dr osaze's recommendation on line, and I contacted him. And he administered his herbs on me. I now have a child I can call my own. In case you want to contact him for a similar problem, or all other issues, you can reach him through his email:
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  7. Am Hellen, thanks to Dr oniha who cured me of fallopian tube blockage and fibroid with his herbal tuber cleanser. My marriage was on the verge of collapsing, because I was unable to bear a child for my husband. Until I came across Dr ONIHA's recommendation onLine,of how he has helped numerous of childless couples to have children with the help of his wonderful herbal medication, and I contacted him. And he administered his herbs on me.within the space of two months, i became pregnant, I now have a child I can call my own. In case you want to contact him for a similar problem, or all other infertilty issues, you can reach him through his email:
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  9. An amazing testimony on how i conceive, also cure from fibroid, i wonder why people still don't believe that roots and herbs are very essential and fruitful in different aspect, especially when you can't conceive and bear children. I am a living witness because I tried all I could to be pregnant but all to no avail, on this faithful day, i decided to check the net for updates on healthy living and i came across testimonies of lot of women who Dr Ebhota has helped with his native herbs to conceive. i decided to put a try because this has been my greatest problem in life so I emailed Dr Ebhota, and he told me what to do which i did, after which he sent me some roots and herbs syrup and gave me step by step guild lines on how and when to have sex with my man. I missed my menstrual flow within a short period of taking it, and the doctor confirmed that I am pregnant. I am very glad to tell the world that I just put to bed a bouncing baby boy last week. Contact Dr Ebhota for your own testimony on: (drebhota123456@gmail.com).Or Whatsapp Him +2349035324155

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