Register now or log in to join your professional community.
A) Wal-Mart uses distribution centers. B) Wal-Mart invests in state-of-the-art information systems. C) Sam Walton's stores are self-service. D) Wal-Mart does all of the above to lower its prices
option- D[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[
i Think Number is made it including Number D Wal-Mart does all of the above to lower its prices
Correct Answer is D. Wall mart do all the above things to lower its prices
Wal-Mart does all of the above to lower its prices. Apart from this they try and cut the cost on administrative expenses such as employee costs, benefits, overheads, office locations...
. D) Wal-Mart does all of the above to lower its prices
D. It does all the three to lower the price
The answer is D) Wal-Mart does all of the above to lower its prices.
However, I would like to add that Wal-Mart has a good control over Porter’s five forces in the sense that they have a barging power over the suppliers. Moreover, it can be argued that Wal-Mart also has an excellent widespread network of stores and know how that raises the market entrance barer for new entrants and at the same time lower the threat of rivalry and substitution and that puts them ahead of competition, but at the same time puts them under the pressure of trying to maintain these advantages to stay a market leader.
Walmart can sell cheaper since:
1. It is its philosophy to sell cheap
2. It has a large number of outlets & a wide customer base
3. The volumes and the scale of operation is very large – economies of scale
4. It has bargaining power over the supplies
5. It has a very efficient supply chain management system
6. It practices cost control systems which minimizes overhead and operational costs
All the above is the anwer
The reason why Wal-Mart continues to thrive despite closures by rivals is that Wal-Mart stuck to Sam Walton's strategy. Wal-Mart is a giant and it has great power and control over the market. Wal-Mart has not been shy to push its weight around and it has done that. Suppliers know that they cannot afford to pull their products from Wal-Mart, that would be a catastrophic to the business, Rivalry is another reason why Wal-Mart has managed to keep the prices low, the suppliers are given two options one of them which is known as the "plus one" either the supplier reduces the cost or increases the value of the over all product. Wal-Mart has been the cause of several business closures. Wal-Mart also employs state of the art technology to reduce over heads and further cut down on costs, even the old philosophy of keep the expenses to the minimum bare exist today, they have also out sourced a lot of their operations in countries like China to further cut down on cost. All these measure help Wal-Mart to operate on minimum costs yet ensuring high profits.
D) Wal-Mart does all of the above to lower its prices.............................................
