2. â Most managers describe strategic positioning in terms of their customers: âSouthwest Airlines serves price- and convenience-sensitive travelers,â for example. But the essence of strategy is in the activities - choosing to perform activities differently or to perform different activities than rivals. Otherwise, a strategy is nothing more than a marketing slogan that will not withstand competition.â Michael E. Porter
3. â No question askedâ Return Policy Computer-Aided Store Design Frequent performance Check Reduce âShrinkageâ More Incentives Improving Logistics Wired Merchandise Requests Direct Connection With Vendors Building Distribution Center (150~300 -mile radius)â Diversification Small town â Large town Itâs Own Trucks and Trailers Quick Delivery & Using Return Trips Much less Inventory Satellite Network Measuring the success of Promotions Marketing On Lowest Prices Efficient Store Operations Focus on Increasing Awareness of New stores Takeover Specialty Departments Bargain-Basement Acquisition More Hard goods Increase in Sales per average ft 2 More Available Selling Space UPC at the Point of Sale Administration More SKUs Human Resources Management Testing Different Mixes Locating VPs in Same Area Everyday Low Prices Reduce Wage Expenses
4. Wal-Martâs Activity System Store merchandise In distribution center Providing â Everyday Low Pricesâ Buy in volume at Attractive prices Centralized purchasing Inventory control Efficient Distribution network Low operating expenses Central computers Linked to vendors Hub and Spoke Distribution network Lease stores $20 million Satellite system Computer aided Design for Merchandise mix Regional vice Presidents live in Bentonville and Flown to stores Employee Salaries â We care about Our peopleâ â No questions Askedâ Return Policy Increased store Size and increase In the number of Store locations Computerized System in each store UPC at point of sale Store manager Salary. Autonomy in Ordering stock and Setting displays Efficient Inbound Logistics