Thesis: Value Chain of Wal-Mart

Sample Thesis Paper

Step: 1

Vendors are considered to be the suppliers of Wal-Mart and these vendors deliver the product to the Wal-Mart’s distribution center or they opt for a direct channel and deliver the products directly to one of the stores. The high volume of sales allows Wal-Mart to bargain from their vendors and they bargain for the lowest possible price. That is the reason why Wal-Mart obtains a competitive edge on its competitors by transferring the savings to its customers (Fieman, 2009).

Step: 2

When the products are delivered to the distribution centers these products are sorted and placed on trucks in order to deliver to different stores. This allows Wal-Mart less than 48 hours delivery to different stores. This also gives and advantage of increased efficiency on trucks with backhauls.

Step: 3

As soon as the products are loaded and delivered to the stores they are placed on the shelf locations in the shops so that the customers can view them. The store locations are located throughout the United States in rural and urban towns.

Step: 4

Finally customers can purchase the products at Wal-Mart at very low prices and they possess the power to return any item they want.

Besides these 4 steps one of the most important features of Wal-Mart is the technique of cross-docking. Wal-Mart possess the power from its value chain to create the same value of wholesalers and this goes on at a much lower cost. A similar phenomenon is with the suppliers of this organization that suppliers sell directly to Wal-Mart and this phenomenon of selling to Wal-Mart is equal to selling to a wholesaler. Suppliers of Wal-Mart sell goods to the organizations in bulks and suppliers don’t enjoy much of the pie but actually the value chain of Wal-Mart enables the pie to get bigger (Sandro, 2009).

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