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 Wall-Mart. The company will benefit from increased sales capacity, as Wall-Mart's inevitably efficient operation will mean exponential increase in sales volume. Besides, research reveals that suppliers who seek to utilize Wall-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 plying to become a Wall-Mart supplier.
Key areas to change as a Wall-Mart supplier The company will need to Improve the efficiency In Its production process as soon as possible. This serves to counter the characteristically low price demands by giant retailer. Research reveals that Wall-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 Wall-Mart's requirements, the company will implement customized business plans that incorporate the retailer's tragic business planning packets.
The supply chain of the manufacturing company will have to change immensely as the channel of distribution has changed. Decision- making technique The management will utilize the analytical decision making technique to arrive at the decision as to whether to become Wall-Mart's supplier or not, In the light of likely outcomes from either scenario. The technique reveals all the positive as well as the negative outcomes from the association and thus, will affect the decision arrived at y the company's management.Analyzing the position of the company reveals that in its initial stages, the company will have to endure more risks than benefits from the arrangement. Therefore, analytical decision-making will result in rejecting the application.
Works Cited Perry, Vanessa G ; Bloom, Paul N. "Retailer power and supplier welfare: The case of Wall- Mart. " Journal of Retailing 77 (2001 379-396. Walter. Standards for Suppliers. 2012.
26 March 2013 ;http:// corporate. Walter. Com/global- Supply to WalterBy Janssen 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 Wall-Mart's suppliers. To position the company to take up advantage of the association, I will consider The company will need to improve the efficiency in its production process as soon as decision as to whether to become Wall-Mart's supplier or not, in the light of likely Mart. " journal of Retailing 77 (2001): 379-396. Responsibility/ethical-sourcing/standards-for-suppliers>.
