Wal-Mart’s Design of Goods and Services
Introduction
The biggest global chains of supply globally belong to Wal-Mart organization. It is a supplying outlet for many products including SLP1, FMCGs, appliances and garments with multiple channels of distribution and suppliers hence a vast and complex supply chain. It has a philosophy to stay at the cutting edge in regards to the portion of supply chain.
Wal-Mart is a global organization in a highly competitive market, it has a strong chain of supply, and its structure of logistics is tight. It is a large chain of supermarkets where it is operational in all countries of the world and primarily in the United States of America. Started with the aim of making profits, Wal-Mart is a non-governmental profit making organization. It has a wide recognition for running its discount department stores. (Galloway, 2009)
The founder of the renowned organization was Sam Walton back in the year 1962. In October 31 1961, it got its incorporation and appeared in the list of New York stock exchange in the year 1972. It has the most employees having in mind that it is a private organization ranking it fourth commercial employer in the world. Because of having many experienced employees, it is the largest in grocery retailing industry with 20% grocery retail in the US. Wal-Mart is also present in the United Kingdom where it owns Sam’s club.
The application of product design in decision making of Wal-Mart
Wal-Mart is a leading store in the United States of America. The organization has been continuously striving to better the design of its products. In the consumer product design, concentrates on both manufactured goods and the quality of the delivered products. It also concentrates on how well it could meet the customer’s expectations. Wal-Mart has very well been able to stay on the competition line by branding and designing products differently. (Pine 1993)
Wal-Mart’s product separates itself form the rest because of its packaging and design Wal-Mart products meant for sale have many attributes including the measurable and the non measurable and have to put into consideration during production. Cost comes in handy when it comes to attributes of product design. Constitution of cost is an important tool when it comes to decision making and there should be maximum care with its regard. (Housel, 2004)
The organization has a good reputation of its good prices and friendly shops from all over the world. Having taken the advantage of design the company needs to sustain the efforts and improve on every possible detail. Many decisions appear in the early stages of design where the design and cost engineers agree on how to improve and keep the details even in years to come for the purposes of better returns. When put together, the two come up with a final product that is affordable to many of people regardless of their social status class. Having in mind that the consumer market is on a fast changing lane, no product design remains constant for long without distortion.
There is great uncertainty regarding this issue therefore the decision of whether to stick to same design or keeping changing the design as per consumer preferences is a decision that has to be taken promptly so that products can have the delivery value. Much change may also lead to undesirable results and therefore should go by its limits. Where there is a degree of uncertainty in design performance, customer preferences, and even in the goals levels the design itself has to change immediately so that the product can reach the shelves in the new status that is under anticipation in every store that belongs to Wal-Mart. (Thompson, 2007)
A description of product life cycles in Wal-Mart
All products from Wal-Mart’s are fast-moving consumer goods, durables and groceries, which have short shelf lives. The product life cycles at Wal-Mart vary from two months to 24 months. That is the reason behind it being an FMCG sector. Even before the introduction of products and designs it has its own fashion and obsolete already and this is what attracts many customers. Such a products life cycle is very short and these products will not be able to bring in that advantage of competition to Wal-Mart.
Most of the products that Wal-Mart deals with have short product life cycles. Before the beginning of a growth rate, there is a set in decline on the other end and this call for continuous product improvement and great innovations in the management of product life cycle. Every product here has a tangible attribute and consumers want that attribute in every new product line. This is a challenge that Wal-Mart has continually been striving to have. (Kidd, 1994)
The application of different issues for product development in Wal-Mart
Issues in Wal-Mart regarding product developments are many and challenging to the survival of these chain stores. The issues undergo generation from not only management of the wide variety of products but continually striving for error generating highest customer satisfaction. Innovation is the catchphrase of product development. The market place is so crowded that unless Wal-Mart caters to this, it is impossible for its sustainability in the market. It keeps innovation as the watchword where there is attention for every customer’s need, and there have to be optimization of new initiatives to meet the needs of the ever-changing consumer market. This is critical to any agenda of product development success. There should be an ideal marketing mix approach by the organization so that there is optimization of product development. This would help in sustaining the advantage of product development issues. (Womack, 1990)
Conclusion
Wal-Mart has ideal design for goods and services that make it remain on the competitive edge having in mind that the organization thrives in a competitive market. Its nature of operations facilitates its good long-term investments. (Kidd, 1994)
Wal-Mart is a worldwide company that deals with chain supply and its operations cuts across all classes of social status including the poor, middle class and the rich. Without profits, there could be no existence and expansion of this organization.
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