Location is a key element to its initial success. From the beginning Wal-Mart established stores that consisted of self-service groceries and general merchandise. The locations of the stores were the southern, smaller towns that its rivals over looked as possibilities. Kmart and Target were established in the same year as Wal-Mart; however they directed their focus on the “urban and suburban areas” for profit (Wal-Mart, n.d). It was later that these other chains realized the significance to small towns having the advantage to support the larger store that Wal-Mart had already taken over. Their opportunity to move in and build would later prove that small towns were capable of supporting just one store of its kind. Wal-Mart continued to …show more content…
Maintaining the upper hand Wal-Mart streamlined the use of technology. Information technology opened many more possibilities for Wal-Mart, the use using bar-codes and checkout scanners allowed for precise inventory tracking. Inventory tracking was more than product quantity it offered the tracking of what products were selling which gave way to maintaining stock for local demands. This method of tracking product demand eliminated the need for overstocking. Distribution warehouses were located within a “300-mile radius” of stores for daily shipments. (Wal-Mart, n.d) Having the distribution centers available not only reduced its need for overstocking it offered more space within the stores for selling products.
Process strategy for the organization teeter totters in a few areas. Product focus identifies a strategy for organizing a facility by product. Wal-Mart ensures product availability and accessibility to the customer. Centering the inventory on a specific locations customer demand they cater to the local needs. The volume is determined by the customers’ demands the variety of products fall in the same suit. Skilled Labor is not a necessity to sell the retail products. “Wal-Mart is a retailer not a manufacturer” (Reuters,