Role of Walmart in Its Channel Network - Assignment Example

The Wal-Mart You Don’t Know” By 06 July 06 July “The Wal-Mart You Don’t Know Wal-Mart’s Role in its Channel Network: Wal-Mart is a giant in the retail business and has been the leader in its field showing the highest sales figures year by year.” Wal-Mart is more powerful than any retailer has ever been.” (Fisherman 2) Being the leader in the retail business, Walmart's main role in its channel system is bringing the lowest prices of everyday goods to its customers. The rationale for affording such low prices is the strong channeling of imports from all the outside countries to the US, Wal-Mart has a strong network and thus brings low cost through imported products from all around the world thus surpassing the procedures of conventional retailing.2. Power of Wal-Mart in its Channel: Wal-Mart’s centralized approach and the number of sales it makes every year gives it the power to act as a leader in its channel.

The network that Walmart has built up over the years is the rationale for its powerful channeling.3. Service Strategy of Wal-Mart: The service strategy at Walmart is satisfying its customers and building long-term relationships with them through offering the lowest prices for their goods. Wal-Mart is famous for its everyday low prices and has positioned itself as a giant in giving best buys as compared to its competitors. 4a. Service Strategy and Distribution: The intensive pricing chopping at Walmart demands a strong and fierce distribution network.

The retailer translates its strategy by having a strong network of distributors from all over the world. While importing can be a hassle for an ordinary retailer, it is a fast option for bringing low-cost products to the local market for Wal-Mart. 4b. Service Strategy and Information Search: In order to keep up with the lowest product prices Wal-Mart has been known to be very strict with its suppliers. This retailer is blamed to force its suppliers and influence them into packaging on Wal-Mart’s terms and conditions.

The company is also known for looking at the accounts of its suppliers and forcing them to cut their profits and charge low prices to Wal-Mart. Thus in order to keep up with its name and image of everyday low prices Wal-Mart’s information search goes from priority packaging to searching through the accounts of their suppliers.