Walmart and Globalization: Difference between revisions
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== | == Background == | ||
* Walmart's success comes from globalization. | * Walmart's success comes from globalization. | ||
Revision as of 06:36, 7 December 2006
Background
- Walmart's success comes from globalization.
- Beginning in the late 1970's, Walmart began its search for cheap imports. Yet, its main rivals (JC Penny, Kmart, etc.)started importing their products before Walmart. What gave Walmart the comparative atvantage over the other chain stores was its use of computers. It allowed Walmart to be more organized and more efficent than its competitors. Using computers Walmart knows what product was selling where, how much of it was being produced, where it was avaliable, and then communicated all this information to its suppliers around the world.
- Walmart's dependance on offshore sourcing continued to increase during the 80's and 90's.
- Today, Walmart imports more than half of all its non-food products.
- Though imports Walmart is able to offer its garenteed low prices and still increase its profits.
