Wal-Mart: Penetrating Cities

Business opportunities do not necessarily grapple as fixed process transactions. Apparently, when an naturalised party has already get a good market reputation, the next step for it is to increase its note quality output in terms of maximizing its earning potential by means of various channels. The aspects of customer service, supplier partnership and logistics can enceintely scram more earnings if delegated correctly. For Wal- shortcomingt, the worlds largest seller according to Fishmans article, the best possible concept is penetrating into cities and establishes a grass outset foundation within segmented markets.One of the main advantages of having this approach for Wal-Mart is that the connection can easily manage its logistic procedures. In a ram city, it is much easier to transport merchandises within specified small locations. Good logistic systems can utilize the best re denotations inside and outside the company nosepiece (Brewer 12). This could easily save tim e and money resources for the pipeline therefore amend inventory and tracking delivery transactions.Another good benefit in this city-concentration approach is that if Wal-Mart can establish a mini counterpart of retail outlets within cities, it would be very difficult for the competitor to have a head-on collision with the company since the brand Wal-Mart speaks for itself in terms of advertising. likewise people will have greater access to Wal-Marts service and may at least feel they have a customized weapon system outlet of the company since the stores will comply with the laws accepted within the city parameters, thus increasing the companys sales. Just like what the company has done in Monona, Wisconsin, a customized super center was established as shoppers get great benefits in terms of convenience and huge savings (Wal-Mart Facts 1).Just like any business approaches, penetrating cities can in addition pose some disadvantages. For one, the establishment of new satellite s tores in cities requires great investment allocations. This could impose a certain degree of Wal-Marts p each(prenominal)y calculation. Moreover, commodity allocation per store can become a conundrum since the company head administration will need to monitor each and every merchant units in all the cities it has established its branches.Establishing a business presence in a local city can greatly increase customer satisfaction and convenience. However, there should al centerings be a way to weigh the investment costs and profit accumulation in the lead a company can initiate this kind of approach. For Wal-Mart, since it already has an established name with huge capitals, penetrating cities can be the best way to expand its specific market influence.Works CitedBrewer, Ann. Handbook of Logistics and Supply-Chain Management. Google Books. 2001. 10 Mar 2008 <http//books.google.com.ph/books?id=3Zfp8F0AOAUC&pg=PA12&lpg=PA12&dq=importance+of+good+logistics&source=web&ot s=darvcNFR14&sig=NV7fY356nwEozHLV8ooQ418-jiQ&hl=en>.Fishman, Charles. The Wal-Mart You Dont Know. FastCompany. 2003. 10 Mar 2008 <http//www.fastcompany.com/magazine/77/walmart.html>.Wal-Mart, New Super center Is customize for Monona . Wal-Mart Facts. 2008. 10