According to Hitt, Ireland, and Hoskisson in their text book, "Strategic Management," a vision statement is a statement that describes the organization and points out what the organization wants to get in the future (19). Thus, vision statements focus on implementation of strategies and decisions which pave the way to a successful business in the future. Wal-Mart is now operating globally, and its main vision is for additional global expansion of operation and "promotion of ownership of ethical culture" to all of its stakeholders worldwide (www.walmartstores.com). The idea of Wal-Mart’s vision on ethical culture is key in globalization. Wal-Mart has had good reputation and competitive advantage worldwide because it has been able to embrace culture and diversity in its operations across nations.
The company continues to evaluate how to be cost effective in getting products to the stores, keeping track of inventory, and earning customer loyalty. Evaluating ideas to increase sales and how to better operate the stores has played a key role in their success. Strategy This researcher would characterize Wal-Marts’ strategy as Market penetration and Market development. Market penetration is strategies focused “primarily on increasing the sales of present products to present customers” (Donnelly, Peter, 2007). Market development is pursing growth of the company by seeking “to find new customers for its present products” (Donnelly, Peter, 2007).
Retailers around the globe have incorporated the concept of customer experience management, with many incorporating the notion into their mission statements. For example, Valero Energy Corporation is committed to ensuring a positive retail experience for customers by focusing on convenience, value and quality. Dell computers focuses on delivering the best customer experience in the markets the firm serves, while Toyota’s mission statement is to sustain profitable growth by providing the best customer experience and dealer support. Similarly, the success of Starbucks is based on creating a distinctive customer experience for their customers. Additionally, a recent IBM report identifies customer experience as a key factor for companies to use in building loyalty to brands, channels and
This paper looks at operation strategy of Toyota Automobile Company and supply chain strategy of Amazon.com, and how they have helped the companies in implementing their business strategies. Literature review Operations strategy Operation strategy is how companies set a plan of goals for its business with the availability resources in it hands to meet the customer need in the market, and make sure company appraise orders by customers through anticipating inventory and the production inventory. In the modern world where technology has grown... ... middle of paper ... ...upply chain strategies are essential in achieving an organizations goal . Amazon and Toyota companies have been identified as successful companies, which are operating in almost in all parts of the world. The companies with a distinctive strategies on operations and supply chain and thus remain competitive in the international market.
This happens through a creative vision, with many partnerships that combined to form an enormous conglomerate. Business Model Wal-Mart business model hinges on a simply notion, to provide product and service to customers when and where they want them. This way of thinking defines the company as an innovator, searching for ways that will not only perpetuate their firm grasp on the retail industry, but also provide their consumers with low-cost options for products and supplies. The Wal-Marts supply chain is a global dynasty, it is known for being effective and efficient, technologically advanced, and logistically sound. These principles are some of the reasons Wal-mart is regarded as the top supply chain in the retail industry.
Walmart embraces new technology to become closer to its customers, to become an innovator in the way restock their shelves, stores track inventory and drive sustainability progress. Walmart supply chain technology allows them to accurately forecast demand, monitor and predict inventory levels, manage customer relationships, create highly efficient transportation routes, and manage service response logistics. For example, Walmart uses cross docking as inventory tactic. Cross docking allows them to reload inventory efficiently. The products are channeled from suppliers to company’s warehouses without sitting for extended periods of time in stock.
Central Issue The main issue facing the management of Wal –Mart was how to sustain their extraordinary growth. As the domestic market reaches saturation, a strategy for at home and for global expansion will be necessary. Recommendation Wal-Mart needs to identify and nurture the primary core competency that fueled their growth: fulfilling customer needs with a wide spectrum of products at “everyday low prices”. This competency is the product of the aggregate of competencies across individual skill sets and organization boundaries: Wal-Mart is a leader in channel management, inventory control, distribution and customer service. This is a result of the company’s ability to coordinate a complex information management and distributing network and to efficiently manage supplier relations, through the use of new technologies and the seamless flow of information.
Consequently, these more su... ... middle of paper ... ...kets. Globalization continues to be a major opportunity for big-box retailer that should be considered. Best Buy can learn from Walmart’s use of its supply chain management as well as its globalization strategy to achieve a greater share of wallet. Global markets provide a unique opportunity, especially in the electronic market, to grow brand awareness. Like Walmart, Best Buy can find ways to enter foreign markets and achieve greater economies of scale.
• Growth by expansion in the US and Internationally. • Create widespread name recognition and customer satisfaction with the Wal-Mart brand, and associate the retailer with the reputation of offering the best prices. • Branching out into new sectors of retailing such as pharmacies, automotive repair, and grocery sales. a. Dominate the Retail Market Everywhere A key strategy of Wal-Mart is to dominate the retail market.
• Both Walmart stores and walmart.com may continue to benefit from international expansion and increasing brand awareness. • Walmart has a great opportunity with the use of their online addition, in assisting them with their large scale of operation. The amount of data that Walmart could collect through the presence of the virtual consumer could develop a better understanding of their customers purchase habits and trends. This could assist in market research and product placement; further emphasising brand and product awareness. 2.4 Threats • In the perspective of consumers, the price awareness of everyday necessities and needs is increasing, as customers would be encouraged to continuously observe the cheapest and affordable stores.