BRIEF: Wal-Mart Store, Inc: Dominating Global Retailing
1. How does the retail structure help explain Wal-Mart’s success?
* Suppliers are not allowed use middle agents to negotiate price. Wal-Mart can get lowest price and ignore price increase, even charge suppliers for delayed or missed delivery.
* Customers save money for the low price on Wal-Mart merchandise. They are globally based. Data mining help the market cater customers’ preference at different locations.
* Employees are from local labor to lower the cost. Store locations also attract employees who expect lower salary. Bonus is linked to the store revenue for encouragement.
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* The competition is minimal as a result of the rural location advantage.
* The prices of merchandises are relatively flexible.
* And the cost on labor and real estates is much lower.
* The settings of the internal stores are always uniform and combine the storage and display of goods.
* Supply Chain Management makes up the shortage of the suppliers’ delivery. And it is effective and lower cost than normal delivery services.
* Technology and logistics maximize the operation efficiency and minimize the costs.
It is sustainable because of the city expansion and counter urbanization. More people move to the suburb area. And lower prices are always favorable to customer. The supply on the inventory for selling is always adequate.
3. What are the best practices that the company has been able to transfer from its home operations to its ventures abroad? What are the practices that have not worked?
Acquisition local small retail companies and Partner with local big retail...