RSM100Y1 Lecture 7: RSM100 - April 1st, 2013
Document Summary
Integrated type of question on exam which requires critical thinking. Helps: volume sales, brand awareness, competitive pricing for small suppliers (could attract target), forces suppliers to be more efficient (lowering cost to increase profit), wal-mart has a very efficient distribution system. Hurts: wal-mart may set standards, stuck with production (if wal-mart quits), exclusivity with wal-mart, left blacklisted (left at the mercy of wal-mart). Opening price points is displaying a discounted price object in first sight. All other products in the department are higher priced. Up to the supplier to determine the transition, maximize profits, lower costs. If wal-mart does(cid:374)(cid:859)t push you overseas, then some other large company will push you overseas. (cid:862)wal-mart gives chinese suppliers the specifications for wal-mart products. And they teach those suppliers how to meet those specifications. They have to do with prices, they have to do with quality, and they have to do with delivery schedules.
