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By innovating the use of sharing sales data, via computer, with their major suppliers, Wal-Mart has been able to keep key items in stock, without having to stockpile them. When an item is rung up at the cash register, this information is sent to a data warehouse that then facilitates reordering from that particular supplier ("Wal-Mart Story"). Add this product availability to the fact that Wal-Mart offers such a wide variety of items, and services from: financial services to beauticians to optometry to automotive care, and one can easily see how the company has added convenience to its strategies of success.
Wal-Mart's most recent convenience strategy also comes in the form of technology. This time, they have melded online shopping with the ease and convenience of in-store pickup.
Wal-Mart's Site to Store service allows customers to shop and purchase their items online, many of which are not available in stores. Through the www.Walmart.com/sitetostorewebsite, there are tens of thousands of items, in nearly 100 categories, that can be purchased ("Site to Store").
The convenience factor comes in with the fact that nearly two-thirds of Site to Store customers shop Wal-Mart stores weekly.
With Site to Store shipping, customers simply pick up their items during their weekly shopping trips, without paying for shipping. These customers now have access to tens of thousands of products, that they can shop for from the convenience of their home or office, and then pick up for free at their local Wal-Mart ("Site to Store").
Increased product selection, free shipping to the local store, and a pick up location that most would visit weekly no matter what, all add up to increased convenience for consumers and greater success for the organization.
Conclusion:
In the end,...
Certainly, they were led down that path early on when Sam Walton recognized that discount retailing would be the wave of the future. Rapid expansion into all fifty states and multiple foreign markets was facilitated by strong revenues, which were garnered by following Walton's basic theory on success - give the customers what they want and they will continue to come back.
And, giving them what they want is exactly what Wal-Mart has done. By utilizing low pricing, and innovative programs, such as the $4 prescription program to bring consumers into the store, and by increasing the convenience for customers by offering one-stop shopping, consistent product availability and new site to store shipping, customers would almost be foolish not to shop at Wal-Mart. For this reason, it is likely that by continuing to give customers what they want, Wal-Mart will continue to be an industry leader.
References
Dollar Prescription Drug Program. No date. Wal-Mart. December 2, 2007 http://www.walmartfacts.com/FactSheets/4_Dollar_Prescription_Drug_Program_Phase_2.pdf.
Economic Opportunities. No date. Wal-Mart. December 2, 2007 http://www.walmartfacts.com/FactSheets/Economic_Opportunities.pdf.
Site to Store Program. No date. Wal-Mart. December 2, 2007 http://www.walmartfacts.com/FactSheets/Site_to_Store_Program.pdf.
Wal-Mart Story. 24 Aug 2007. Wal-Mart. December 2, 2007 http://www.walmartfacts.com/content/default.aspx?id=1.
The Wal-Mart Timeline. 1 Apr 2007. Wal-Mart. December 2, 2007 http://www.walmartfacts.com/content/default.aspx?id=3.
Wright, S. "Econ Professor Illustrates Benefits of Wal-Mart." MIT. 20 Jan 2006. IAP. December 2, 2007 http://web.mit.edu/newsoffice/2006/iap-walmart.html.
Further, under this segment are a number of financial products ranging from bill payments to wire transfers and money orders. On the other hand, the company's international segment has in its fold online retail as well as a number of discount and retail store formats. The company's Sam's Club segment has in place private-label items as well as other merchandise categorized as either soft goods or hard goods. Further,
Wal-Mart Threats There are a number of threats that Wal-Mart faces in the external environment. These include intellectual property rights, rising cost of production in China, and the threat that is posed by intense competition in its many spaces. As Wal-Mart expands its retail footprint in emerging markets, especially China, it must take into account that the intellectual property protections are different in other parts of the world. In China, for example, one
The quest for cheaper prices is pushing manufacturing jobs offshore and affecting the jobs of Americans. This is the trade off involved in globalization. Bibliography 1) Wal-Mart, 'About Us', retrieved Oct 15th 2010, from, http://walmartstores.com/AboutUs/ 2) Suzanne Kapner, (2009), 'Changing of the Guard at Wal-Mart', retrievd Oct 15th 2010, from, http://money.cnn.com/2009/02/17/news/companies/kapner_scott.fortune/index.htm 3) Michael Barbaro, (Mar 2006), 'Wal-Mart shows a Similar Side to Sears', New York Times, retrieved Oct 15th 2010, from, http://www.nytimes.com/2006/03/31/business/media/31adco.html?_r=2 4) Michael
Lastly, market studies must be conducted to decide what product mis will sell the best in these new locations, focusing on products that are already strong sellers in the area. Alternative: After a year of operation, Wal-Mart should evaluate the success of their entry into the new market. Sales, profits and market share will tell the organization if they're on the expected track. If not, the degree of difference must be
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