How is Walmart Able to Keep Track of its Inventory? Essay

Wal-Mart didn’t just get by with cost-saving methods. They were ahead of their competitor’s technology wise too. Even in the 1970’s, Wal-Mart was able to track inventories in their warehouses and link it with stores. They tracked their sales data for specific items and could increase or decrease their inventory accordingly, achieving a higher efficiency than other retail companies. Another aspect that Wal-Mart felt strongly about was expanding there reaches. In 1978, they introduced a Pharmacy, auto center and jewelry divisions.

Wal Mart company strategy is to provide lower prices for their customers. In a small

When it comes to Services, Wal-Mart also has the upper hand. In many stores they offer: a Bakery, Meats, Photo Centers as well a on site photographers, Automotive services, Hair Salons, Banks, Optical Offices, Pharmacy, Nail Salons as well as restaurants such as McDonald's, and Subway. Target has rivaled many of these services providing in store Starbucks, Taco Bell/Pizza huts, and the most recent advance is an in store clinic. Even with these amenities it is still far behind Wal-Mart in the services department.

Having strong presence in the retail industry, the firm expanded business to offer second hand car. The firm leverage on its competencies to provide its own product to consumer. Also, Wal-Mart works heavily with its suppliers. This symbiotic relationship can be seen as vertical integration due to the level at which Wal-Mart analyses its suppliers and improves their manufacturing processes. Wal-Mart definitely has the business strategy of Low Cost Leadership. They do nothing to really differentiate themselves from competitors and provide no-frills self-service stores that always provide the lowest prices. Wal-Mart has built enough clout with suppliers that they can dictate the prices and go in and change suppliers manufacturing processes in order to wring out more and more savings for the consumer.

1) What sources of cost advantage does Wal-Mart rely upon to execute its business-level strategy in the US? Walmart was able to fly under the big company’s radar for a while by putting stores in rural towns. They were able to buy land for cheap and once they opened a store the town could not support another store of similar size. And everyone played a part in keeping the cost down, from owners buying cheap hotel rooms to people taking out their own trash. They wanted to drive the cost down as low as it could possibly get. With suppliers Wal-Mart presented unlimited growth potential due to its size, so Wal-Mart could easily press for a lower price and high quality and suppliers would deliver to keep their business. They

The prices at Wal-Mart are always low. They even price match other stores. ThisWhich means if you bring in a sales paper with, for instance, a microwave that’s $45 and Wal-Mart has the same one for $65, they will sell it to you for $45. If they have something marked lower than what it really is they sell it to you for that price, even if it’s a big difference. You definitely get more for your money at Wal-Mart.

Evidently, Wal-Mart is not doing anything to differentiate itself from rivals. It gives no frills to self-service outlets always providing the cheapest prices. Through a well-built influence with suppliers, the company has gained the power to manipulate prices and amend manufacturing procedures thus wringing out more savings for its customers. All that the company does from the frequent calls to suppliers to doubling up execs in hotel rooms aimed at saving the

Wal-Mart has the ability to offer the lowest price for several reasons. First, it is a major retailer, not only the largest company of its kind in the world, but the largest company of any kind in the world. Therefore, it can buy in bulk and great discounts from its suppliers. Furthermore, because its business is a bulk business, it can profit even if it spends that same amount on a product as another retailer would spend, particularly when one factors in its money-saving distribution chain.

The success of Wal-Mart is due in large part to its ability to consistently produce high quality products at a low cost. This is very critical to the future success of Wal-Mart because it provides consistency to customers who are price sensitive. By committing themselves to "Everyday low prices," Wal-Mart assures customers that the products sold within their stores are competitive in reference to its retail competition. This low price strategy also provides Wal-Mart with a

Walmart serves nearly 260 million customers weekly across 27 different countries, both in stores and through its websites (“Fortune”, 2015). Walmart relies heavily on its proper and effective marketing strategies; Walmart would not be able to achieve the level of success without these strategies. Low prices, easy access for its customers, and social media campaigns are a few of the vital tactics Walmart has used in its marketing plan. “Save Money. Live Better” is Walmart’s mission in delivering customers products at the lowest prices. This low price strategy plays a marketing role that caters to customers who seek the lowest prices and with grocery stores that provide great deals (Brown, 2017). Walmart’s low cost business model is protected by its powerful supply and distribution chains throughout the world. Customers can expect the same cost efficient style in every Walmart store worldwide.

A few reasons as to why Wal-Mart became a leader in the retail industry is due to their practices in obtaining competitive advantage by offering the lowest prices for the market. Wal-Mart built their practices by giving suppliers transparency to meet the demand of customers and granting them long-term relationships by purchasing goods in bulks. In addition, their turn times on inventory are three-five days faster than regular competitors. The inventory shelves are similar to Honda since they only hold up to four hours of inventory in their manufacturing site. Also, Wal-Mart holds their own transportation which is why they can manage their costs efficiently for the company. Their transportations system constitutes links between suppliers, distribution centers and retail stores. They have restrictive criteria for drivers where in order for them to be hired they would have to be accident free for a consistency of minimum 300,000 miles accident free. The supply chain practice that they have gained since they began the business was strategically faster and cheaper than all competitors. 85% of Walmart’s inventory is taken care of by their own transportation system and only about fifteen percent is taken care of by the suppliers through cross-docking. Wal-Mart uses

Like all departmental and/or discount stores, Wal-Mart's strategies are focused around achieving the goals such as building a large and strong customer base, under-cutting competitors, and organization of its supply chain in the most efficient and effective manner and above all, market growth.

Walmart’s mission is to keep “everyday prices low” meaning labor costs must be kept at the lowest possible level. Walmart has always made every effort in keeping unions out of its company. The National Labor Relations Board has filed numerous complaints against Walmart. If a division decided to strike, Walmart would typically just fire the employees.

2. A discount retailer who is strictly based on low price, Wal-Mart's "everyday low price" philosophy is running their stores quite successfully. In addition, Contrasts with other small company and retailing business, Wal-mart uses a strategy of odd number pricing. This strategy has been tested and has proven that people tend to buy items, which are odd number priced, more than, a price ending of zero.

Walmart is a very big store. Have you ever wonder how it all got started? It was founded by Sam Walton. A lot of the products say that they are made in China. Walmart began as a small town store and has expanded from nation to nation. The company does business with many nations, where the products they sale could be made at a cheaper