GGR252H5 Lecture Notes - Lecture 4: Walmart, Barcode, Final Good
Document Summary
Benefits for american consumers: everyday low prices. Increase in american standard of living: more money & choice for the consumer, one-stop shopping, convenience, range of products & price. Implications for american workers: loss of manufacturing jobs, replacement with service jobs. The wal-mart model: buy cheap, sell for less than competitors, profits through high volume & rapid turnover. Streamline supply chain, reduce time from production to distribution to sale. Outsourcing to remain competitive: changed relationship between retail and manufacturing. Push economics manufacturers push product on retailers to sell. Pull economics retailers decide what to sell, tell manufacturers what. Price focus wal-mart determines the price. Continual push for lower prices to produce: dealing with suppliers (vendors) Bargaining room sessions: change in vendor relationship. From supplying multiple retailers to a small number. Enforce compliance with large retail demands: store culture, opening price points. Initially small towns, ignored by other retailers: from a regional player to a national player.
