MIS Essay Example | Topics and Well Written Essays - 1500 words - 1

MIS - Essay Example ent of the Company are deeply convinced that the new product will increase the profits of the Company by 100 of millions as 100 million shoppers buy from the Wal-Mart every week (Girard, 2003). The reason behind the Wal-Mart’s decision to sell Jeans to Wal-Mart was to target the rich customers and attracting well-off customers requires big brands, the Company, therefore, needed big brands. Levis is a famous high prestigious brand. The customers of Wal-Mart are people from all walks of life and through Levis, the company shall be able to meet the demands of all their customers, including the demands of the new affluent customers. Wal-mart has a high bargaining power. This fact can be attributed to the fact that Levis is facing tremendous pressure on the sales front as its revenue has decreased because of the changing preferences of the customers. The Wal-Mart company, therefore, really needs to target a new customer group through its new product line so as to boost the company earnings and make profits of 100 million dollars. Walmart Company has a well-established supply chain management system that enables it to track the inventory right from the supplier factory up to the warehouse. Suppliers of Wal-Mart need to be upgraded in IT system so as to enable them to track inventory management. 4.What generic strategy (among the following four: (1) broad target / cost leadership, (2) broad target differentiation, (3) focused target / cost leadership, and (4) focused target / differentiation) is Wal-Mart following? Justify your answer. Wal-Mart is guided by the broad target and cost leadership strategy. The company targets a broad range of customers that come from all walks of life. The company distinguishes itself from its rivals on the basis of low costs. An entry barrier is defined as an advantage of established sellers in an industry over potential entrant sellers that is reflected in the extent to which established sellers can easily raise their prices above