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Control Mechanisms Paper: Walmart

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For Walmart:

Determine the effectiveness of these control mechanisms.
Examine the positive and negative reactions to the use of these controls.

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Solution Summary

The solution determines the effectiveness of the control mechanisms.

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Control Mechanisms
Walmart uses four types of control mechanisms-price, logistics, product stock, and marketing.
Price: When it comes to pricing, Walmart is a leader. Price is the primary control mechanism which Walmart uses to attract customers and manage competition. There is no other retailer who can match Wal-Mart's price. Due to its size, Walmart has a significant market share and dictates the cost to vendors for the products which are sold in the store.
Logistics: The policy of Wal-Mart to have a store in every state of US allows the company to have total logistics control. No other retailer is able to match the scale at which Wal-Mart operates, and hence by having total logistics control Wal-Mart is able to gain competitive advantage. Wal-Mart has around 103 domestic distribution centers that service approximately 2800 ...

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