Supply Chain

2191 WordsMar 15, 20119 Pages
1. Amazon.com, Peapod, Dell, and many furniture manufacturers use push-pull supply chain strategies. Describe how each of these companies takes advantage of the risk-pooling concept. To better understand the strategies used by the three (3) companies and furniture manufacturers, the definition of Push or Pull is established below: Push Strategies – when the manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. Pull Strategies – when a manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product thus inducing the intermediaries to order it. The Figure below illustrates the Push-Pull bounderies of the three (3)…show more content…
Other than need to expand, what other reasons would Wal-Mart have for opening stores globally? If there’s an objective why the predecessors of Sam Walton (founder of Wal-Mart) decided to go out of its comfort zone in the US is diversity - to diversify its market. This strategy is important because of 12 very important reasons: This strategy is important because it (1) Reduces risk against poor market conditions in the US. For example, over the past few months America’s corporate world has lost half of its assets due to poor economy which can be a sign of recession. In condition like this, many consumers and business will cut down on spending. The effect of cutting spending can be felt by many organizations, including big retail giant Wal-Mart. The point is that if the Wal-Mart invest everything in to one market, then it would have greater risk should that market were to perform poorly in years to come. On the other hand, if Wal-Mart chooses to operate globally in to different markets, than the investment is more diversified and so the risks are far less. Another reason Wal-Mart have for operating globally is to (2) Decrease if not eliminate competitions. Wal-Mart is the biggest retailer in US. However, it is not the largest in other part of the world. This would mean that there are other companies that are operating in other part of world which Wal-Mart could penetrate that market and gain more market share. This is important because, if Wal-Mart does not penetrate

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