Wal-Mart Business Strategy Analysis Essay Example | Topics and Well Written Essays - 1750 words

Wal-Mart Business Strategy Analysis - Essay Example 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 inve ntory 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.... 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 as well as promoting employee friendly policies that would have helped it to position its image as a socially responsible and employee friendly organization. In response to the bashings in various quarters, Wal-Mart increased the employee insurance cover for the employees and included both permanent as well as contractual staff. It also revamped its reward and incentive policies in order to project the company as an employee friendly organization caring towards the needs of the employees. Wal-Mart also initiated some community development programs such as eliminating wastage and use of recyclable products in order to showcase its environmental sustainability; it also planned means to reduce energy consumption. For the customers, the company initiated a new design for its stores and also came up with attractive offers and new discounts in order to project a customer friendly image of the company. Strict quality control standards were implemented for suppliers including use of eco friendly ways in their business processes. In addition to this Wal-Mart also took up measures in which it would work closely with their suppliers in order to