Wal Mart

Wal-mart Stores Discount OperationsCase Background:This case describes drop removeing and the typical features of Wal-marts reject operations. It also sketches areas into which Wal-mart was diversifying in the mid-1980s. Q1 What historically contract been Wal-marts key sources of competitive advantage inDiscount retailing?Wal-Marts Key Sources Of Competitive Advantage in Discount sell:Early Mover AdvantageWal-Mart had success seriousy taken the concept of discount stores from cities to small towns with the logic that if the price offered in the towns was as sheikh or better than stores in cities that were hours away, people would prefer fink at home. Wal-Mart was the first of the kind to recognize this opportunity & ash gray in on it; it didnt have much competition initially. Locational AdvantageOver a half of Wal-Marts stores were still located in towns with populations between 5,000 & 25,000, a higher proportion than the rest of the industry. Rentals were exti rpate compared to the industry average providing better margins. About one-third of Wal-Marts were located in metropolitan areas or counties that werent served by any of Wal-Marts competitors. Wal-Mart often commanded 10%-20% of total retail sales in locations where it was alone.

Promotional StrategyWal-Mart had the philosophy of everyday minor prices. The competitors cut 20% - 30% on selected items nearly every week. This entailed a lot of promotional/ ad cost for the same. Wal-Mart saved this advertising/promotional cost by only running fewer promotions. Customised Merchandise30% of Wal-Marts merchandise was customiz ed to local anaesthetic needs. Competitiv! e PricesManagers had more latitude in setting prices foreign other centrally priced chains. Wal-Mart offered lowest price compared to competitors especially when competitors were in the vicinity. Computerised SKU (Stock Keeping Units)Never filled out stock areas with different merchandise. of mo Computer Linked To Those Of...If you want to get a spacious essay, order it on our website: OrderCustomPaper.com

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