Wal-Mart is a company that has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart’s efficient procurement. This company has grown from a single store in Rogers, Arkansas to almost 2,000 bright, attractive stores in 43 states is legendary in American business (Antoni, 2007). It was build by Sam Walton with a focus of adding value to the customers and empowering employees.
The company is recognized by the retail industry as having the best information systems for basic inventory and supply management. Due to the company’s high investment in information technology it has continued working hard to keep its competitors from obtaining their secret. The company’s culture is strengthened by getting the recent information regarding what customers want, getting best ideas from employees about the running of the stores and profit haring with the employees (Antoni, 2007).
Its operation is based on the quest to increase profits to the employees. It uses telecommunications that links it directly from its stores to its central computer system and from that system to its supplier’s computers (Kneer, 2009). The use of telecommunication in this company gives room for automatic reordering and proper coordination. They are therefore aware of what they are selling with closer coordination with its customers which makes the company use less money in the stock than their competitors.
The company’s strategy of catching up was a point of sale system which is a computerized system that identifies each item that it’s sold and search for its price in a computerized database. This computerized system creates an accurate sales receipt for the customers and later stores this information that will later be used for analyzing sales and reordering inventory. Despite from handling information efficiently, effectual use of this information helps Wal-Mart avoid overstocking by learning what merchandise is.
Wal-mart has bar code scanners that make it easier to record sales of each item and make that information available immediately for reordering and sales analysis. Bar codes are very essential to companies that deal with large grocery stores and retailers. The use of bar codes in this company has brought a number of problems along with the benefits that wal-mart gets and the customers. It made the stamping of price unnecessary on each item.
As a result there was reduction of cost but on the other hand some the clerks who were doing the stamping lost their jobs (Kneer, 2009). Due to its tremendous growth, many merchants have been overwhelmed by the small stores in the outskirts of small towns. The company is so large that it can sell its products and get profit in a price less than small town merchant’s costs (Kneer, 2009). Customers who live in these towns obtain benefits from the best selection and pricing but at the same time they lose the benefits of living in small towns.
Due to the company’s competence and the use of information technology, there is a reduced cost of manufacturing which is a threat. The manufacturing cost fall due to outsourcing to low cost regions of the world. The consequence of declined cost of manufacturing is price competition and deflated prices at some intervals (Kneer, 2009).
Kneer, C. (2009). The Wal-Mart Success Story. Deutschland, GRIN Verlag. Antoni, A. (2007). The Impact of Wal-Mart on the British Retail Market. Deutschland, GRIN Verlag.
Essay Writing Service Features
Our ExperienceNo matter how complex your assignment is, we can find the right professional for your specific task. My Essay Gram is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free revision policy$10
Free bibliography & reference$8
Free title page$8
How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.Completing the order and download