RSM LECTURE (APR 1).docx

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Department
Rotman Commerce
Course
RSM100Y1
Professor
Professor Michael Khan
Semester
Winter

Description
What’s new in the world of business? It’s april fools, businesses are making this as an opportunity Michael Dell is trying to buy back his company Is Wal-Mart Good for America? Case Study Debrief? Marketing and Wal-Mart 1. Why do many consumers “love” Wal-Mart?  Low prices  Wide selection of goods  Decent quality for prices  Convenience – easy access 2. On balance, does Wal-Mart help small suppliers more by forcing them to focus on the needs of customers, or hurt them more by squeezing their ability to earn strong profits, which would assist them in growing faster? Good (help them)  Double edged sword o Sustainable growth because wal mart reorders o Limits growth because profits are based on volume not margin Builds brand awareness  Sustained growth because wal mart reorders  More efficient  Competitive from price perspective  Target may buy from you as well because wal-mart is its competitor  More exposure for their products o Use wal-mart for marketing  If you ship to wal-mart, you ship it to everyone else  Purchase patterns in wal-mart are consistent  Save money from warehousing hurt them  Wal-mart sets standards that are hard for other companies to compete  They have to compete only based on price  Harder for smaller companies to differentiate their products based on anything OTHER than price  Dependence on wal-mart  If wal-mart ever stops doing business with you, you’re stuck with the large volume of inventory  Assuming exclusivity with wal-mart they are going to be taking a big part of the pie, if stops business, can’t fill it  If displease wal-mart, get blacklisted 3. are there any ethical issues that arise from Wal-Mart promoting “always low prices”, and creating the perception in consumers’ minds that their prices are actually lowest, given their “opening price point’ strategy  tempts you with low prices, but when you actually go to the store, there are other choices that tempt customers into buying the higher ends ones  price matching  it is the consumers’ decisions to make the shopping choices  strategies to tempt customers in buying stuff --> locating the higher demands stuff (clearance, bank machines) at the back so that you can go through their goods and make a purchase 4. is wal-mart simply being realistic about the globalization of production – or is it need
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