Mgt 312 Week 2

Name: Sandra Janisse
Course: MGT 312 Intro to Management
Date: 3-24-2013
Supplying to Wal-Mart
Considering the market position of the company, as far as supply of the innovative kickstands is concerned, I would consider applying to be one of Wal-Mart’s suppliers. As a move to improve the company’s market share and utilization of the company’s excess capacity, contacting Wal-Mart would be an effective move. Research reveals that choosing to supply via Wal-Mart will improve the company’s current distribution process. Apart from benefits of utilizing the company’s idle manufacturing capacity, there will be instant access to the world’s largest global retailing network through Wal-Mart. The company will benefit from increased sales capacity, as Wal-Mart’s inevitably efficient operation will mean exponential increase in sales volume. Besides, research reveals that suppliers who seek to utilize Wal-Mart’s wide market derive benefits from a strengthened market position (Perry & Bloom, 2001). Therefore, to position the company to take up advantage of the association, I will consider applying to become a Wal-Mart supplier.
Key areas to change as a Wal-Mart supplier
This serves to counter the characteristically low price demands by giant retailer. Research reveals that Wal-Mart’s business practice involves rare consideration in price increase for the suppliers. On the contrary, the retailer constantly asks for price decrease instead. As per Wal-Mart’s requirements, the company will implement customized business plans that incorporate the retailer’s strategic business planning packets. The supply chain of the manufacturing company will have to change immensely as the channel of distribution has