Wal Mart

Wal-mart Stores Discount OperationsCase Background:This case describes drop changeing and the typical features of Wal-marts dismiss operations. It also sketches areas into which Wal-mart was diversifying in the mid-1980s. Q1 What historically model been Wal-marts key sources of competitive advantage inDiscount selling?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 slap-up or better than stores in cities that were hours away, people would prefer knock off at home. Wal-Mart was the first of the kind to recognize this opportunity & facile in on it; it didnt have much contest 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 end com pared 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 underage 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 cust omized to local anaesthetic needs. Compet! itive PricesManagers had more latitude in setting prices gothic 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 signification Computer Linked To Those Of...If you want to get a wide essay, order it on our website: OrderCustomPaper.com

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