Wal-Mart Stores Inc. March 2004

Running Head : Wal-Mart Performance

Wal-Mart Performance

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Globalization has had a positive impact on planning in Wal-mart organization . This is because Wal-mart stakeholders are able to estimate the profit it can make by allowing its cheaply manufactured and inexpensive goods and services to cross the bs and reach other countries of the world (James , 1999 ) defines industry attractiveness as the prevailing situation in the core business of an organization which favors the specific organization for example in monotheistic business environment , a business is more

likely to be favor in terms of business performance since it can manipulate market forces to its advantage . Even in a market environment , less than 4 competitors are likely to influence the market situation to their advantage hence creating an attractive market environment

Wal-Mart 's performance has been termed as sterling by many business analysts . The chain has recorded a profit after taxes of above 200 billion . By applying concepts like vendor managed inventories as well as just-in-time concept , Wal-Mart has continued to maintain leadership in the retail market in the US . Wal-Mart endeavors to remain a low-cost retailer , and by that it has been very effective in maintaining market attractiveness . By all means Wal-Mart has achieved low cost retail prices mostly because it manages to source goods at the best possible market prices . This is possible through the strategy of replenishing stock daily in which it allows its key suppliers to access data on sales , which in turn ensures that stocks are supplied just in time

Wal-Mart has successfully cut expenses in that it is able to save costs which would otherwise have gone to hiring warehouses , paying for the storage and security of the goods in warehouses , the costs which goes with insurance as well as the risk of destruction resulting from fire and other natural calamities as well as expiry of perishable goods . By paying the suppliers based on what is sold the company ensures a zero cost in inventories , this in turns affords the company an opportunity to lower prices since there are less expenditures . In long term , this contributes to industry attractiveness

The other area in which the company has achieved competitive advantage is in terms of adapting information systems . By doing that , Wal-Mart has become a low cost producer in that it achieves effectiveness and therefore minimizing losses . The organization has set out to be a market leader . In terms of incorporating information technology , Wal-Mart has computerized its purchasing systems to incorporate E-purchasing . As a purchasing strategy , e-purchasing is economically reliable and cost effective . Compared to a competitor who does have not adopted the e-purchasing concept , Wal-mart has been able to save a lot of money and time

According to (Kendel , 2004 , competitive advantage also depends on how companies utilize and take advantage of the buyer power . To this end Wal-Mart has outshone all its competitors in that , it is refuted to be one of the organizations in the US , which has been able to get suppliers...