This 5 page paper examines the distribution strategy of Wal-Mart. The first part of the paper performs a SWOT analysis to look at the strengths, weaknesses, opportunities and threats faced by the company and its’ distribution strategy. The second part of the paper makes recommendations to reduce their exposure to weaknesses and threats. The bibliography cites 2 sources.
Name of Research Paper File: TS14_TEwaldist.rtf
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right place at the right time otherwise consumers will not be satisfied and customers will be lost to competitors (Kotler, 2003). Looking at Wal-Marts distribution strategy there are a large
number of strengths. In order to consider potential future strategies we will first look at the current position with the use of the SWOT analysis to identify the strengths, weaknesses,
opportunities and threats company, and its distribution strategy, is facing. The second section will consider potential solution to the problems, which will be based on reducing weaknesses, mitigating threats by
building on the strengths and seizing opportunities. 2. SWOT Analysis 2.1 Strengths A major strength of Wal-Marts distribution strategy is reflected in the way it is being developed. The company has developed
a central warehouse system which distributes to the individual stores. This process gives Wal-Mart is a great degree of control over supply chain determining what is delivered where and when
with their own trucks, a potential source of competitive advantage (Porter, 1985). The suppliers delivered to the centralised warehouse, which are then distributed to the individual stores on a daily
basis in a very efficient manner. Some stock has an average time in warehouse of only 12 hours. Trucks arrive in the afternoon or early evening and not unloaded until
night-time hours when the stores are quietist; this may be seen as effective scheduling for resource management (Mintzberg, 2003). The distribution centres are set up on an as needed basis.
When you stores are open and they will always be located within a 200 mile radius of the nearest distribution centre. The expansion strategy sees the practice of clustering to
make both distribution and marketing cost-effective. As more stores open in an area and strains placed on the closest centralised warehouse, a new warehouse will be opened in a strategic