Walmart Every Day Low Prices

Topics: Supply chain, Logistics, Marketing Pages: 3 (1022 words) Published: April 11, 2010
Wal-Mart Stores: “Every Day Low Prices in China”
Opening Statement
Strengths of Wal-Mart in the United States
Every Day Low Prices
Economies of Scale
Another key advantage Wal-Mart has over the industry is its supply–side economies of scale. The organization enjoys lower costs per units because it purchases products in high volumes. This allows the company to spread the costs over more units. In addition, the company had successful innovation in technology to increase efficiency in distribution and sales. This allows the organization to develop better terms with suppliers to sale products at the lowest price possible (Porter, pg.3). As a result, entry barriers for new competitors are increased forcing competitors to take on the disadvantage in cost. When Wal-Mart entered into the market it was able to avoidthis competitive advantage because they developed only in small towns. Due to the small populations it served, they were able to saturate the market deterring new competition and grow below the competitor’s radar. In addition, since the company was operating in small towns, the company was able reduce costs from the lower land and real estate prices (Farhoomand, pg.5). Customer Satisfaction

The most important competitive advantage for the corporation is its emphasis on customer satisfaction. As a result, it increases the value of the organization that attracted new customers and kept existing customers coming back for more. The key concept the organization utilizes is “exceed your customers’ expectations.” The statement promotes great customer service by showing respect to the individual and striving for excellence. Throughout the organization employees realize that a customer should never be allowed to leave unsatisfied. Wal-Mart reveals that the key to profit and growth is to provide quality goods at a low price in a friendly environment (Farhoomand, pg.4) Distribution and Logistics Technology

The core of Wal-Mart’s business operation...

Cited: Drucker, Peter F. "They 're Not Employees, They 're People." They 're Not Employees, They 're People February (2002): 1-8. Print.
Friedman, Milton. "The Social Responsibility of Business is to Increase its Profits." w_ww.umich.edu_. The New York Time Magazine. Web. 01 Dec. 2009. http://www.umich.edu/~thecore/doc/Friedman.pdf.
CNBC. "The New Age of Wal-Mart." F_ancast.com_. Http://www.fancast.com/tv/The-NEW-Age-of-Wal-Mart/105875/1303386323/The-NEW-Age-of-Walmart/videos, 23 Sept. 2009. Web. 12 Dec. 2009.
Kotler, Philip, and Kevin L. Keller. A Framework for Marketing Management. 4 International ed. Upper Saddle River: Pearson Education Inc, 2009. Print.
Levitt, Theodore. "Marketing Myopia." Harvard Business Review July-August (2004): 1-15. Print.
Porter, Michael E. "The Five Competitive Forces That Shape Strategy." Harvard Business Review (2008): 1-18. Print.
WikiInvest. "Wal-Mart Wiki Analysis." Wikinvest.com. Trade King. Web. 15 Dec. 2009. http://www.wikinvest.com/stock/Wal-Mart_(WMT).
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Walmart; the High Cost of Low Prices Essay
  • Walmart Research Paper
  • Every Day Low Pricing: Pros and Cons Essay
  • walmart Essay
  • Walmart the high cost of a low price Essay
  • Walmart The high cost of Low Prices Essay
  • Walmart; the High Cost of Low Prices Essay
  • Essay on Wal-Mart Stores: Every Day Low Prices in China

Become a StudyMode Member

Sign Up - It's Free