Wal-Mart Business Strategy Analysis - Essay Example

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Wal-Mart Business Strategy Analysis

Wal-Mart draws its competitive edge in the market owning to its efficient supply chain management. The company has effectively used innovations and technology to generate efficiency in supply chain management that has helped it to fuel its highly acclaimed EDLP (Every Day Low Price) strategy. Behind this successful strategy lies technological innovations like cross docking and use of Enterprise Resource Planning to integrate various business units and generate cost effectiveness. The use of real time information system to forecast demand has helped Wal-Mart to ensure that demand forecasting is done on the basis of real time data. Wal-Mart has also integrated its suppliers with the system and also used the famous cross docking system to ensure reduced inventory carrying costs. The supply chain management of the company has helped ensure that there are no overstocking or stock outs. This has reduced the inventory carrying costs by a huge margin. The cost benefits gathered from the inventory management of the company has been used to fuel the company’s Every Day Low Price strategy (Bergdahl, 2008, p.20). However in recent times there have been numerous issues with regards to the company’s cost reduction strategy with reports that Wal-Mart sources low quality goods from third world countries so as to have goods with low price. In order to counter the latest bashings regarding the company, Wal-Mart initiated a slew of measures that ranged from measures to improve the social image of the organization. ...Show more


The present paper "Wal-Mart Business Strategy Analysis" shall examine the marketing and business activities of the Wal-Mart. The analysis of the business strategies of Wal-Mart reveals considerable edge for the company in terms of efficiency in handing business operations…
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