Industry Analysis Department Store Essay

The products will be competitively priced, good quality and available in appropriate assortment and quantities in stores. The stores will be attractively and effectively merchandised for selection and be clean and safe.

1) Should Wal-Mart be expected to protect small businesses in the communities within which it operates?

The purpose of this business report is to gain familiarity with Wal-Mart and to learn about the different aspects that make Wal-Mart a successful company. This report gives an in-depth analysis of the company history, services and products provided, the company philosophy, business methods, organizational structure, and financial and competitive analysis.

Retail super-giant Wal-Mart has fought its way to becoming the world's largest company. Wal-Mart’s legendary supply chain technology has allowed them to break the three-day barrier that some economists in the eighties felt that it was unbreakable. In other words, Wal-Mart is often able to replenish items on the Wal-Mart shelf in less than three days – not from the central warehouse to the shelf, but from the manufacturer to the shelf. With quick and reliable 2-day turn around, Wal-Mart is able to maintain lower levels of inventory and still meet customer demand. These lower inventory levels result in either a reduced floor plan with lower carrying costs and lower interest expense – or a greater diversity of products on the store shelves.

In Forward integration involves company to develop strategy to control the firm product distribution either through distribution centers or retailers. It is a necessary action when companies have potential benefits from handling, shipping of their own products directly to customers, or the retail selling their own products in brand stores.

customer demand) or by new products for which markets must be found and exploited. A successfully integrated system will have two components (Allen, 2011):

to see where the company is now with the use of a brief Swot analysis.

Suppliers pose a credible threat of forward integration. Low -Medium. Its is possible of suppliers to integrate forward but there is no such mention in the case.

Yes, I do believe Wal-Mart is doing enough to become more sustainable. Wal-Mart is one of the most powerful companies internationally. As with all things that come with power, Wal-Mart’s business practices are scrutinized thoroughly. This includes their relationships with suppliers, employees, consumers, and the environment. In recent years, the environment has become such a big issue that Wal-Mart, as well as other companies have had to respond to this growing concern.

According to DSW Inc.’s March 2016 10K filing, “Our growth strategy is to continue to strengthen our position as a leading footwear and accessories retailer by: expanding into new markets with the right banners and store format, extending our customer reach through new categories, and acquiring new strengths to compete in ways and places that are relevant to the customer, such as our recent acquisition of Ebuys, Inc. We will also continue expanding our physical and digital presence in relevant markets through existing and new formats, investing in our infrastructure, and utilizing our financial strength to invest in key initiatives.” (DSW Inc.10-K filing, 2016) The use forward Integration to gaining control over retailers by opening more than 40 stores in 2015 and made changes to their website to be able to offer products in store and online taking control over other retail stores. (DSW Inc., 2016) The use backward integration to gaining control over suppliers by not agreeing to work with any supplier that does not have the same values. Each supplier is responsible to sign a code of ethic and follow the code or DSW will discontinue using the supplier. (DSW Inc., 2016) DSW Inc. uses horizontal integration to gaining control over competitors by offering low prices, convenience of a one stop shop for shoes instore or online, and they value from the loyalty program. (DSW Inc., 2016) The are using market penetration to seeking greater market

Backward integration is a type of vertical integration in which a company takes control over its suppliers. It is a form of acquisition of the intermediary players involved in supplying the raw materials used in the production process of the firm. Raw materials, intermediate manufacturing and assembly are controlled by the firm whereas distribution to the end customer is done by a third party company. In this way, company increases production efficiency and gains a competitive advantage by lowering its production cost.

Wal-Mart is a world-wide active American retail trade company and currently the largest retail company in the world. Beginning in 1962, Wal-Mart has made the transition from a small firm in Arkansas to the largest employer with 3, 800 store units in the United States with record revenues today. But nevertheless, since Wal-Mart launched its online branch, it had to suffer from substantial setbacks from competitors such as Amazon.com or Ebay.

A company won’t integrate vertically its production if it against its business interest. There are some vertically

Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation. Although the company was once successful for a number of years, it’s apparent that there has been a significant decline in its overall appeal and how much revenue the company acquires each year. With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has thrived to be one of the most avid corporate extensions.

On the other hand, another control system the organization is their rewarding strategy; as they link their performance and abilities to meet goals and targets to pay raise and promotion.