Design in Decision-Making at Walmart

1110 Words Jan 11th, 2018 4 Pages
First, product design is applied in decision-making in Wal-Mart through sales, where lower profit and higher cost relegate any product to the "end of life management" stage (Ramani et al., 2010, p. 2) if the competition can produce a faster-selling, cheaper wholesale product that Wal-Mart then deploys, because the new products must dominate in those characteristics or Wal-Mart will not purchase them. Wal-Mart's bottom line compared to other retailers implies the chain keeps up with evolving consumer preferences and cost-cutting technological progress in all its procurement or else it would choose more competitive products. Specifically, Wal-Mart outlines some of the ways product design is applied in decision making, most obviously surrounding waste reduction and promoting how the company is reducing environmental throughput in product selection. The first reason is cost reduction, but the second can presumably be driven by consumer preference for sustainable products and perceptions, where consumer perceptions also include those of its shareholders in many ways. If Wal-Mart finds environmentally friendly products sell faster than for products without that characteristic, then product design is incorporated in decision making by Wal-Mart's bulk demand for those goods, which will drive producers to comply with newer-generation products; the result should be that older, less environmentally-sustainable products…
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