Walmart Article Example | Topics and Well Written Essays - 750 words

Walmart - Article ExampleWal-Mart purchases directly from the manufacturer. This coupled with the effective use of engine room and w behousing strategies, Wal-Mart is able to put up its customers with quality products at competitive prices. Such decisions made by companies, which back up them gain a competitive edge against their rivals in the market are termed strategic decisions. These decisions involve many degree of innovation and thus, help companies gain advantages which are sustainable (Hayden et al, 4). One of the key components of Wal-Marts short letter sector model is its human resource. The company has a frugal culture yet the working environment is pleasant. The employees are c tout ensembleed associates as opposed to employees. An associates well being is of gritty priority for the management. There is no concept of work-union, as the company takes care of associates needs and demands. The promotion criterion for managers is dependent upon the profits made by thei r token outlet thus, it leads to maximum work efficiency. In order to inculcate spirit of competitiveness, the stores are not simply encouraged to compete with other retail franchises, but also amongst themselves. The organization is well equipped with the in vogue(p) technological innovations, which are like real time market research, satellite system and store capital punishment tracking. In addition to this Wal-Mart is very particular about its logistic partnerships with various vendors from around the world. Low hail logistics are the reason why Wal-Mart has its present competitive edge. Thus, the company grants special attention to its procurement transition (Canak, 5). Over the years Wal-Mart has thrived by using a number of various different factors to its advantage. This includes a business model which till date is a mystery to those outside the organization. The company is also very nigh(a) at hiding its deficiencies and covering its faults. Thus, it digests an exa mple of organisational model to the competitors seems which virtually seems flawless and is overall very cost-efficient and effective. Such effective strategies by the company, has made it one of largest retailers of America. Wal-Mart follows three fundamental and generic strategies - Focus Strategy, distinction Strategy and Cost Leadership. Wal-Mart started its operations by opening large stores in small shops (Canak, 5). At that time, all the other companies focused their efforts and resources on large metropolitan cities. However, Wal-Mart saw a gap and thus, capitalized on it by opening stores in small towns, not only did the company had a monopoly, but also had to pay low rental costs and goods were available at cheap local prices. Wal-Mart aims to not only provide products at low prices, but also provide unique and differentiated products to its consumers. The stores USP is high quality products at lowest possible prices. This is one strategy that Wal-Mart has followed since the very beginning and plans to follow for its afterlife strategic plans as well. It order to reduce its product cost, the company streamline its procurement process by getting products manufactured from different parts of the world. This reduces the production costs and thus, the eventual end price of a product (Hayden et al 12). High inflation has plagued the world over the past few years. Even though countries have found their way out of the recession, high economic inflation is still a problem. Wal-Mart plans to provide goods at affordable