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Pricing Strategy

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RUNNING HEAD: Wall-Mart’s Pricing and Supply Management

Wall-Mart’s Pricing and Supply Management
Cesar Venegas
Webster University

The traditional goals and philosophies that Sam Walton, founder of Wal-Mart, has left behind, is still leading Wal-Mart as one of the most successful retailers in history. He believed in three guiding principles: 1. Customer Value and Service; 2. Partnership with its associates; 3. Community involvement. Respect to Wal-Mart’s secrets to success, Walton has been quoted saying, “It has to do with our customers’ expectations every hour of every day.” One of his deepest beliefs was that the customer is always right and his stores run mainly on this principle. Strategic pricing is also one of his many …show more content…

However, the team Management and employees is both internal and external colleague, reflecting the new interdependencies in today’s competitive market. The supply chain manager takes into deliberation that each facility that has an impact on price and plays a role in making the merchandise conforms to the consumer requirements: from supplier and manufacturing facilities through warehouse and distribution centers to retailers and stores. “A firm’s supply system includes all internal functions plus external suppliers involved in the identification and fulfillment of needs for materials, equipment, and services in an optimized fashion” (Burt, Dobler, & Starling, 2003). However, implementing this type of system within the firm has a vital role in helping the company satisfy the role in the supply chain. “The Internet allows supply chain managers to manage their supply chains collaboratively and to synchronize their operations” (Burt, Dobler, & Starling, 2003). “The cash register reads the bar code price tag and reportedly within fourteen seconds, the Wal-Mart central warehouse is notified that the Wal-Mart retail store needs a new flashlight for the shelf to replenish the purchased item” (Wal-Mart, 2008). “Even the raw material suppliers are notified that the manufacturer now needs a little more raw materials (plastic

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