Essay: Value Chain of Wal- Mart

Sample Essay

The value chain for Wal-Mart is unique as it is different form the traditional manufacture to wholesaler to retailer and to customer model. The Wal-Mart value chain pertains to the model of manufacturer to Wal-Mart to Customer. The company has been successful in reaping benefits form this model and adding value by locating its distribution centres in strategic locations that are supported by the strategic locations of its stores through cross docking. As a result the company is able to create the same value for the wholesalers at lower costs. The suppliers on the other hand do not get a larger share or percentage of the market share but end up benefiting through the increase in the market and the over all volume garnered in their share percentage.

The main corporate strategies that have been employed by the company pertain to maintaining the dominate position that it has attained; expanding in the local US market as well as traversing in the international markets; creating a brand in the name Wal-Mart that provides it with instant recognition as well as branching of the company operations into niche based retail businesses targeting different retail business sector.

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