Wal-Mart and Levi Strauss and Competitive Advantage
Competitive advantage is important for businesses. However, without assistance from an organizations entire supply chain, competitive advantage is quickly lost. Whether in the form of technology, cost factors, or customer support, the supply chain plays a critical role in achieving and maintaining competitive advantage. Wal-Mart and Levi Strauss are two companies that have successfully used their supply chains to gain competitive advantage.
Wal-Mart is the largest and most profitable retailer in the world. In the United States, Wal-Mart is the largest grocer and private employer. Wal-Mart attains competitive advantage in different ways such as its cost structure, product offerings, and distribution assisted by technology, and customer support through empowerment of its employee associates.
Levi Strauss jeans created in 1873 began as a manufacturer of denim workpants with copper rivets used to strengthen the pocket stitching. By listening to its customers, Levi Strauss created the most popular piece of clothing in the world-blue jeans. Levi jeans sold in more than 110 countries has gained competitive advantage through its product offerings, distribution, and customer support.
Table of Contents
1. Wal-Mart and Levi Strauss and Competitive Advantage
2. How Does Supply Chain Usage Gain Competitive Advantage within an Industry
3. Affects of Ethical Concerns, Globalization, Diversity, E-Business, and Innovation have on Supply Chains
Objectives & Core Topics
This paper examines how global organizations, specifically Wal-Mart and Levi Strauss, leverage their supply chain management strategies to cultivate and sustain a competitive advantage within their respective industries.
- Strategic integration of Information Technology (IT) in supply chains.
- Implementation of RFID technology to optimize inventory and cost structures.
- Product differentiation and innovation strategies like 'personal pair' customization.
- Managing ethical challenges and labor rights within global manufacturing networks.
- The impact of globalization and e-business on supply chain efficiency.
Excerpt from the Book
How Does Supply Chain Usage Gain Competitive Advantage within an Industry
Wal-Mart’s supply chain assists Wal-Mart gain competitive advantage within its industry through the use of effective information technology (IT). By implementing radio frequency identification (RFID) technology into its supply chain, Wal-Mart recognized the potential to track inventory and customer demand while “pushing out the infrastructure costs to suppliers, limit its own exposure to costs, and reap the benefits through its own supply chain” (Evans, 2004, p. 1, para. 4).
Using this information system prevents excess stock by allowing suppliers to access Wal-Mart’s warehousing data to activate automatic reordering of goods. As a result, only 10% of Wal-Mart’s floor space is dedicated to inventory holding versus 25% for the industry.
Levi Strauss with assistance from customer support created the ‘personal pair’ kiosks that allow women to custom fit and design their own jeans. This innovation, which is part of an eight step process, involves taking four measurements from women with preprogrammed data in the kiosks and with assistance form a sales clerk a final inseam measurement made. After the measurements are made, a pair of jeans can be built to order.
Summary of Chapters
Wal-Mart and Levi Strauss and Competitive Advantage: Introduces the fundamental importance of supply chain management for maintaining a competitive edge, highlighting the corporate success of Wal-Mart and Levi Strauss.
How Does Supply Chain Usage Gain Competitive Advantage within an Industry: Explores the technical mechanisms, such as RFID implementation at Wal-Mart and product innovation at Levi Strauss, that drive efficiency and profitability.
Affects of Ethical Concerns, Globalization, Diversity, E-Business, and Innovation have on Supply Chains: Analyzes the broader challenges companies face regarding ethical labor standards and global operations, demonstrating how these factors impact overall supply chain strategy.
Keywords
Supply Chain Management, Competitive Advantage, Wal-Mart, Levi Strauss, RFID, Information Technology, Globalization, Ethical Standards, Inventory Management, Product Innovation, Personal Pair, Labor Rights, E-Business, Cost Reduction, Value Chain
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores how major global retailers use their supply chain infrastructure as a strategic asset to gain a competitive advantage in the marketplace.
What are the central themes discussed?
Key themes include the role of information technology, supply chain efficiency, product customization, ethical labor considerations, and the impact of global business trends.
What is the primary goal of the research?
The goal is to illustrate the critical link between effective supply chain management and the ability of a company to remain profitable and competitive.
What scientific or analytical methods are used?
The author uses a comparative analysis of corporate case studies (Wal-Mart and Levi Strauss) to evaluate supply chain performance indicators and strategic initiatives.
What is covered in the main body of the work?
The main body examines specific technological integrations like RFID, innovative customer-focused services like custom-fit jeans, and the management of ethical ramifications in global supply networks.
Which keywords characterize the paper?
Important keywords include Supply Chain Management, Competitive Advantage, RFID, Globalization, and Ethical Standards.
How does Wal-Mart specifically utilize RFID technology?
Wal-Mart uses RFID to track inventory and customer demand in real-time, allowing them to shift infrastructure costs to suppliers and significantly reduce in-store inventory holding space.
What innovation did Levi Strauss introduce to boost sales?
Levi Strauss introduced 'personal pair' kiosks, which allow for a customized, made-to-order manufacturing process for jeans, resulting in higher sales, reduced costs, and increased profit margins.
How does Levi Strauss address ethical concerns in its supply chain?
Levi Strauss utilizes a 'Terms of Engagement' (TOE) system to evaluate suppliers on criteria such as employee ethics and production quality, ensuring labor rights and health awareness are maintained globally.
- Quote paper
- James Tallant (Author), 2010, Wal-Mart and Levi Strauss Acheiving Competitive Advantage , Munich, GRIN Verlag, https://www.hausarbeiten.de/document/167356
