Part A
1. Understand your service supply chain
Wal-Mart’s supply chain management is recognized as a core competitive strategy through efficiently manage the relationship between suppliers, manufacturers, distributors, and retailers; the frugal corporate culture push them to strongly interact with each other and result in keeping its prices low. As the figure 1 shows, Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ , from where they were dispatched to the individual stores. The supply chain management system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities and distributing them through its own logistics infrastructure …show more content…
Based on research, Wal-Mart was able to maintain its price competitive advantage during its expansion in India because of the Indian government’s over protection of the local market reduces market competition. Which shows, Wal-Mart should focus on maintaining a competitive advantage of service value rather than through price competition since it already obtains price advantage. As we learned, logistics is increasingly becoming a source of competitive advantage, customers are more willing to choose competitors who provide faster and efficiently deliver service. Therefore, I believe Wal-Mart should focus on implementing its logistics management, as well as perishability management to the Indian market.Wal-Mart should provide training, refining, to extend skills of the hired local workers in order to smooth operation of manufacturing and service delivery. Nevertheless, customer service system should also be adapted to the Indian market to gain local customer
1. Understand your service supply chain
Wal-Mart’s supply chain management is recognized as a core competitive strategy through efficiently manage the relationship between suppliers, manufacturers, distributors, and retailers; the frugal corporate culture push them to strongly interact with each other and result in keeping its prices low. As the figure 1 shows, Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ , from where they were dispatched to the individual stores. The supply chain management system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities and distributing them through its own logistics infrastructure …show more content…
Based on research, Wal-Mart was able to maintain its price competitive advantage during its expansion in India because of the Indian government’s over protection of the local market reduces market competition. Which shows, Wal-Mart should focus on maintaining a competitive advantage of service value rather than through price competition since it already obtains price advantage. As we learned, logistics is increasingly becoming a source of competitive advantage, customers are more willing to choose competitors who provide faster and efficiently deliver service. Therefore, I believe Wal-Mart should focus on implementing its logistics management, as well as perishability management to the Indian market.Wal-Mart should provide training, refining, to extend skills of the hired local workers in order to smooth operation of manufacturing and service delivery. Nevertheless, customer service system should also be adapted to the Indian market to gain local customer