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Wal-Mart Case Study

            
             When reading the article about Wal-Mart I was astonished to find out how Wal-Mart began and also the tactics that they used to become the worlds number one business. Wal-Mart completely dominates the supermarket world.
             Wal-Mart is so superior because when it was established there were constant steps being taken in order to make the company a success. They figured out ways to expand and also figured out ways to stomp their competition. After some research was done the store focused on expanding. They decided to turn to more densely populated areas for growth purposes. By doing this they could make stores larger and have more products available for purchase. Another tactic used and developed through information technology was the central computer system. This computer would either transmit the requests to the Wal-Mart distribution center that supplied the store or if the stock levels were getting low it would reorder merchandise. Having this was very beneficial because they would never be out of any products and always would be stocked to its needs. The computer system was also linked directly to several hundred of its suppliers. Therefore, making it easy and less stressful to reorder products. It also states that Wal-Marts competitors were taking more than one fifth of its volume from any one vendor. However, Wal-Mart refused to take more than one fifth of its volume from any one vendor. .
             Overall there are numerous reasons why Wal-Mart dominates the market. But, I believe that low prices and vast amount of selection of products forces its competitors such as K-Mart and Target to lower their prices. When K-Mart and Target lower their costs it takes them virtually out of business. By lowering their prices to stay competitive with Wal-Mart hurts them in the long run because they lose money which makes them close more stores and with stores closing it makes Wal-Mart a more growing business.


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