SUPPLY CHAIN MANAGEMENT AT WAL-MART Case Solution

It will also assist the management of the organization and all the other relevant stakeholders of the company to identify the weaknesses and issues that undermine the existing policies and operations of the supply chain function of the company.

Walmart is a large and the most dominant retail merchandising organization not just in the U.S but all over the world as it operates in multiple overseas countries and markets. Thus, it is very critical for the management of the company to adopt and pursue an effective and flexible supply chain policy and structure. It may host any future advancement in the future that serves the interests of the company well and contributes positively towards increasing the efficiency and effectiveness of the supply chain of the company.

CRITICAL SUCCESS FACTORS:

There are two most prominent functions and practices within the business culture and structure that have contributed the most for the gigantic growth and performances of the business traditionally. These two contributors can undoubtedly be known as the critical success factors for the impressive growth and performances of the company in the past and present.

The most prominent success factor has been the supply chain management of the organization that has been based on the principle of innovation and flexibility. This innovative strategy of the supply chain management of the business has facilitated the management of the company in adopting and practicing the best possible activities and technologies that increase the efficiency and effectiveness of the supply chain of the company to supplement its operations in the markets where the business operates.

The other critical success factor for the management of the company has been the low-cost strategy of the business. The products that the company offers to the customers at its stores and super marts are roughly 10% to 25% lower in prices than the competitors of the company and this has almost took these rivals of the company out of competition.

PROBLEM STATEMENT:

“The primary problem for the management of the company is to maintain the competitive advantage over the rivals in the industry in order to supplement the growth and market share of the company in the markets by sustaining an effective and efficient supply chain management structure and policies within the business culture.”

ANALYSIS:

PORTER FIVE FORCES:

THREAT OF NEW ENTRANTS:

The global retail industry is highly diverse and contested industry and several new entrants are frequently witnessed in the industry all over the world however, a significant share of the global retail markets is sustained by a few multi-national organizations like Wal-Mart. Moreover, it is not easy for any new entrant in the industry to pose a significant threat to these large organizations simply because of their size and reach in the markets where they operate.

It will take significant time and numerous resources for a new entrant in the industry to simply match the operations of the organizations like Wal-Mart therefore, the threat of new entrants in the industry is quite low.

THREAT OF SUBSTITUTES:

The introduction and overwhelming adoption of the internet in the developed and the developing regions of the world has provided the business community and the corporate societies with a newer and much more innovative platform for doing business.

The business to business and the business to customer model of the e-commerce has been a new evolution in the industry. It is a segment of the industry that is witnessing massive growth and expansion over the years.....................

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