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walmart feasibility report

walmart feasibility report - 2010 iRobot Corporation[Type...

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2010 iRobot Corporation [Type the author name] [ WAL-MART FEASIBIL REPORT ] An analysis of supplying the World’s largest retailer. Executive Summary: After a considerable amount of consideration I believe seeking furthe would not be an appropriate measure for iRobot. This is due to the h Wal-Mart Inc. and the general target consumer base of our company government and the current demographic are not consistent with the 1
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Introduction: This feasibility report is to consider whether or not our company has the ability or interest to expand our supply base to Wal-Mart, Inc. As one of the world’s leaders in robot manufacturing we must look to our supply chain in order to stay atop of the industry. Wal-Mart, Inc. is the world’s largest retailer and we must see if the opportunity to supply them would give our company the best chance to grow. This report provides an initial basis to help us decide whether or not we could possibly supply Wal-Mart and whether or not it is feasible for us to attempt such a venture based on the following: Financial Analysis. Logistics & Capabilities. Our mission statement and long term goals. Final assessment and recommendation. Financial Analysis: In order to keep our risks as a seller to a minimum a financial analysis is typically completed for the company being considered but in the case of Wal-Mart this is not necessary. In a world of financial uncertainty, Fortune 500’s #1 company demonstrates the highest level of financial security possible and would significantly decrease the risk to our company as the seller. For a company that averages 100 million customers each week we can assume that Wal-Mart will provide every opportunity to have our product purchased. It is equally important to consider the financial status of our company and make sure it is able to take on a liability of supplying a company that requires replenishment of stock. Wal-Mart is a unique company in that as a supplier they require the seller to replace the unit sold on prior to being paid for the sale. This unique type of replenishment is something that Wal-Mart requires all suppliers and it can very easily place a company in financial bind. As a company that incurs high production costs iRobot must be sure that we can afford to not only produce another unit but also have it shipped and placed on the shelves prior to being paid for the initial unit sold at the store. iRobot must be assured that our current financial standing can provide the opportunity to take on this expansion in production and business.
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