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Logistics and Core Competencies

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Logistics and Core Competencies
Wal-Mart Core Competencies With a market in 69 different banners and in 27 countries, Wal-Mart is one of the biggest corporations of our time. All of Wal-Mart’s success has been received by the core competencies that the corporation holds within them. Wal-Mart has become one of our world’s largest and cheapest retailers all over the world, which is only part of how and why Wal-Mart is one of the greatest corporations in our society and world today. Wal-Mart can contribute its success to its core competencies. Core competencies are capabilities the firm emphasizes and performs especially well while pursuing its vision. Wal-Mart has plenty of core competencies, whether they are little or big, however the bigger ones are more noticeable. Wal-Mart’s top five core competencies are; low cost operations, distribution, culture, logistics systems, and environmental awareness. 1. Low cost operations. When serving customers and members over 200 million times a week, Wal-Mart must have something the people want. With some of the lowest prices ever on everything from toothpaste to tires, Wal-Mart has the right idea. Since 1950 Sam Walton, the founder of Wal-Mart, has been trying to lower prices in numerous ways. Walton started by offering low cost by spending less. Still to this day Wal-Mart’s executives stay the night in cheap hotels and even share rooms. This was started to help reduce the cost of Wal-Mart’s expenses, which in turn lowers the price of their products. Walton, and even the current CEO and executives at Wal-Mart also talk with their suppliers to see how the suppliers can reduce cost which then lets Wal-Mart lower prices even more. With Wal-Mart reducing its own prices and the prices of their suppliers, Wal-Mart is able to keep their low everyday prices for consumers all around the world. 2. Distribution. With over 140 distribution centers worldwide, Wal-Mart has been able to reduce distribution cost and time needed to make a delivery. Wal-Mart


Cited: Wal-Mart. (2012). Wal-Mart . Retrieved from Wal-Mart: http://corporate.walmart.com/ Wilbert, C. (2006, April 26). How Wal-Mart Works. Retrieved from How Stuff Works: http://money.howstuffworks.com/wal-mart.htm
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