Cost Leadership Strategy: Wal-Mart: Supply Chain Management

Discussion Question 6.3
The internal value chain is set of activities that transforms the organization inputs into outputs which are supply chain management, operations, distribution, marketing and sales, and after-sales service (Rothaermel, 2017). A cost- leadership strategy creates the same or similar value for customers by delivering products and services at a lower cost than its competitors (Rothaermel, 2017). A cost leadership example would be Wal-Mart. Wal-Mart strategy is to provide a higher quality of products and services to its customers at a lower cost. Wal-Mart supply chain management is to engage with its suppliers to match products at the best affordable and lowest cost to meet the needs of its customers. Wal-Mart recognized
The Operations of Wal-Mart as enable them to transform their inputs into outputs during distribution and meeting the demand of its customers. Wal-Mart is the largest retailer in the world and its strategy is to sell high volumes of discounted products (Blanchard, Comm & Dennis, 2008). Wal-Mart Distribution is one of the largest in the world. Once the distribution center is built, stores will be planned and opened around it to gradually saturate the area which serves approximately 150 stores (Blanchard, Comm & Dennis, 2008). The distribution network is realigned to maximize efficiencies every time another center is added to the system and distribution centers combined with Wal-Mart's own private truck fleet allow the company to retain significant control over deliveries (Blanchard, Comm & Dennis, 2008). Wal-Mart is continuously improving its marketing and sales strategies. Wal-Mart uses its own unique strategies to meet the demand of its customers. Wal-Mart challenges the market and is not afraid to venture into new arenas (Blanchard, Comm & Dennis, 2008). From personal experience two weeks ago, the Wal-Mart I shop at placed a new system in which is called “Scan and Go.” You are able to scan your items and bag it while you shop and when you are done scan your portable scanner at the
Toyota’s supply chain management involves physical components as well as the operational process. The physical flow starts with the raw materials being produced by the suppliers, transported by the inbound logistics to the assembly plant; at the assembly plant the vehicle begins with the body shop then moves to the paint shop, back to the assembly for final inspection (Operations process of Toyota); once the vehicle is completely produced, outbound logistics transports it to the dealership (Distribution Process of Toyota) (Iyer, Seshadr, Vasher, & Seshadri, 2009). Toyota’s marketing and sales mission statement is “Customer First/Lifetime Customers as Well as Radar for All of Toyota” (Iyer, Seshadr, Vasher, & Seshadri, 2009). Toyota produces affordable vehicles for their customers and potential customers to purchase. Toyota uses direct sales for its products. Toyota’s after-sales service is to suppose their customers. The majority of customers ae served by dealer for their after-sales service needs therefore, Toyota has created an efficient supply network to provide reliable supply of service part to dealers and help train dealers in providing excellent service (Iyer, Seshadr, Vasher, & Seshadri,