'The SYMPHONY WAL-MART - Essay Example

In fact, with “supply-chaining”, competition between companies is replaced with competition between supply chains. Thomas Friedman (2005) aptly stated that “the more these supply chains grow and proliferate, the more they force the adoption of common standard between companies (so that every link of every supply chain can interface with the next), the more they eliminate points of friction at borders, the more the efficiencies of one company get adopted by the others, and the more they encourage global collaboration”.

Question 2 At Wal-Mart, 24 hours a day, 7 days a week, and 365 days a year (24/7/365), suppliers deliver their goods to Wal-Mart distributions centers. The sorting, packing, and distribution of these goods to Wal-Mart stores and shelving in Wal-Mart stores are also carried out 24/7/365. Once a particular goods is purchased by a customer and scanned by the cashier, a signal is generated, which is relayed to the manufacturer of the product, notwithstanding the global location of the manufacturer.

The generated signal is sent to the manufacturer and he is prompted to produce another of that product. Once the product is produced by the manufacturer, the cycle is repeated. The cycle, according to Thomas Friedman (2005) is on a global scale “in multiple movements – with no finale” and designated as “Wal-Mart Symphony”. Question 3 Heavy and early investment on cutting-edge IT infrastructure to identify and track sales on the individual level afforded Wal-Mart a competitive edge over its competitors.

Wal-Mart is also smarter and faster in adopting new technologies and innovations than its competitors. Another element of competitive advantage is the culture of buying in large volume directly from the manufacturers at the deepest discount possible and shipping to distribution centers at the lowest possible cost. Furthermore, collaborating with manufacturers to lower cost as much as possible, improving its supply chain to be as low-cost and frictionless as possible and improving the information system in order to know customer’s taste and need and feeding this information to the manufacturers also offers Wal-Mart an edge over its competitors.

Besides, Wal-Mart also broadens the scope and scale of its supply chain in order to lower price thereby capturing more market than its competitors. Based on Porter five forces, Wal-Mart is considerable competitive advantage. For instance, its low prices favor the bargaining power of its customers over that of its competitor. Though Wal-Mart faces competition from smaller dollar stores and online giant retailers, its ability to secure low prices from its suppliers still enhance its competitive advantage.

Furthermore, Table 1 shows SWOT analysis which also supports Wal-Mart competitive advantage in the consumer market. SWOT Analysis Strengths Weaknesses Opportunities Threats Worldwide reputation as low price retailer Poor reputation with respect to worker benefits, gender issues Good investment in IT infrastructure and good bargaining power with suppliers Several dollar stores and creating a formidable niche in the consumer market Ambitious managers and cooperate leaders Difficulty in exporting its brand outside the US Adapting its service to the taste and demand of its customers Online retailer such as Amazon makes shopping fun and easy.

Question 4 Wal-Mart started