GGR252H5 Lecture Notes - Lecture 11: Walmart, Barcode, Outsourcing
Document Summary
More money and choice for the consumer. Increase in american standard of living: easy for consumers. One-stop shopping, convenience, range of products and price. Low prices benefits consumers, can increase standard of living amongst society. Buy cheap, sell for less than competitors. Profits through high volume and rapid turnover. Importance of technology: bar code, tracking of sales, trends, turnover, ensure correct product mix for stores, ensure efficiency in ordering and supply, super computer, logistics, streamline supply chain, reduce time form production to distribution to sale. Impact on other retailers: replicate to remain competitive. Impact on manufacturing firms: outsourcing to remain competitive, leveraging supply chain. Changed relationship between retail and manufacturing: from push economics to pull economics, push economics- manufactures push product on retailers to sell, pull economics- retailers decide what to sell, tell manufacturers what to produce. Dealing with suppliers (vendors: bargaining room sessions, price focus- wal-mart determines the price, continual push for lower prices.
