Wal Mart Is a Global Leader in Essay

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Wal Mart is a global leader in retail supply chain management, logistics, operations, fulfillment and transportation services. The efficiency and profitability of the WalMart supply chain operations globally have set a new standard in their industry and often been used as the basis of comparing performance of supply chains in related industries as well (Stevenson, 2009). What has contributed to the rapid growth of WalMart however has been the acquired expertise in planning, launching and support supercenters in remote geographic regions in the U.S., while also being able to tailor their unique retailing strategy to foreign markets as well. WalMart has learned how to integrate customer and buyer demographics into their retail planning and execution systems to ensure every store format, from the very large and complex Supercenters to the small storefronts in China, all operate to an optimal level of sales and profitability performance (Courtemanche, Carden, 2011). By basing many of their expansion plans on insight and intelligence into buyer demographics and preferences, WalMart is successfully able to turn these retail locations into integral hubs of their supply chains as well (Stevenson, 2009).

The Pros and Cons of Walmart Entering A Local Area

The initial success of WalMart in the United States is due in large part to the company's ability to find rural regions underserved by a variety of retailing services, and create supercenters to meet customers' needs.

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With over 5,000 stores in operation today, this skill set today is one of its greatest strengths. For a small business the negatives of WalMart entering a rural market include price competition, greater product-based competition, and increased competition for the best employees in the area. WalMart also has significant brand awareness and expertise in local marketing, which will make building a local brand even more difficult for a small or medium business (Edwards, 2011). In addition to these factors, WalMart has been known to engage in price wars over time with local food retailers and grocery stores in an effort to gain greater share of aggregate retail sales (Courtemanche, Carden, 2011). It is not surprising that small and medium businesses see WalMart as a competitive threat.

Ironically for all of these threats, WalMart has also been known to significantly increase the value of real estate in small towns as well (LaRose, 2011). This occurs due to WalMart's largest suppliers often creating shipping and service hub locations near the largest WalMart supercenters to further accelerate inventory turns over time (LaRose, 2011). When WalMart moves into a given region, they often….....

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