Midterm review - Wall-Marts value chain model Inbound...

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Wall-Mart’s value chain model Inbound logistics: Wal-Mart uses it IT based supply chain to interact with their supplier. The Company uses cost-effective method in the supply chain management to track the movement of products through their entire value chain. Whether the product is in shipment, in distribution center inventory, in- store inventory or on the shelf or at the cash register, Wal-Mart uses their Information system to track it in real time. Operation: Operations and distribution strategies have also helped Wal-Mart achieve low prices. IT has also help Wal-Mart to achieve a global information network. Wal-Mart’s has stores outside of large cities. Outbound: Wal-Mart’s use of IT in efficiently managing the logistics / transportation to bring the finished goods to distribution center and to retail outlet. The company uses trucks and trailer primary for their outbound logistics for regional DC to store delivery. Marketing and sales: Wal-Mart minimum IT to advertise by policies. Their emphasis is on customer satisfaction thought service and prices, as well as strategically place store. Near maintain to cities etc… relies on word-of-mouth advertising to win over consumers in larger cities. Because stores are close together, distribution costs are below average. Because their stores tend to be grouped together, they are able to spread advertising expenses across a single market, minimizing advertising costs. Service: Information technology has enable Wal-Mart to help their customer on their online Wal-Mart provides customer support at their stores for returns, as well as online stores, Telephone etc. . Every store has a “greeter” near entrance to welcome customers, offer them a shopping cart, and direct them toward where their items are located. Wal-Mart also allows customers to return the product without any question ask, which ending up in a better image of value in the customer mind. Amazon uses of technology in the future to address any 3 of porter’s 5 forces are: Much of the success of Amazon is due to their establishment on the web and the technology within help keeps the company operating and growing. Amazon has used technology to increase buyer power by allowing potential buyers to access their site to search for items of interest. Buyers now have an alternative to shopping which does not involve going to their actual store to shop, buyers can have their orders shipped right to their home even thought the rivalry amount competitors do exist, . The threat of entrants is fairly low because of the company has an increase amount of products to sell. Amazon uses technology to offer so many different goods and become on the biggest online stores making it difficult for new entrants that would even try to follow the Amazon model. Now that technology has given Amazon its place in the market, their supplier power has lowered because they sell so much that every supplier wants to become business partners. Amazon is now able to choose from numerous suppliers to get
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This note was uploaded on 04/09/2012 for the course BUS 24739 taught by Professor Ramamurtisridar during the Spring '12 term at San Jose State University .

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Midterm review - Wall-Marts value chain model Inbound...

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