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
- Wal-Mart and Levi Strauss: Achieving Competitive Advantage
- How Does Supply Chain Usage Gain Competitive Advantage within an Industry
- Affects of Ethical Concerns, Globalization, Diversity, E-Business, and Innovation have on Supply Chains
Objectives and Key Themes
This text aims to examine how Wal-Mart and Levi Strauss utilize their supply chains to achieve and maintain a competitive advantage. It analyzes the strategies employed by both companies and explores the impact of various factors, such as technology, ethics, and globalization, on their supply chain operations.
- Competitive advantage through supply chain management
- The role of technology in optimizing supply chains
- Ethical considerations in global supply chains
- Innovation and its impact on competitive advantage
- The interplay between globalization and supply chain efficiency
Chapter Summaries
Wal-Mart and Levi Strauss: Achieving Competitive Advantage: This introductory chapter establishes the central theme of achieving competitive advantage through effective supply chain management. It introduces Wal-Mart and Levi Strauss as case studies, highlighting their respective positions in their industries and their success in leveraging supply chain strategies. The chapter emphasizes the crucial role of the supply chain, encompassing technology, cost factors, and customer support, in achieving and maintaining this competitive edge. It briefly touches upon the diverse methods employed by both companies to gain a competitive advantage, setting the stage for a deeper dive into specific strategies in subsequent chapters.
How Does Supply Chain Usage Gain Competitive Advantage within an Industry: This chapter delves into the specific mechanisms through which Wal-Mart and Levi Strauss use their supply chains to gain a competitive advantage. For Wal-Mart, the focus is on the implementation of radio frequency identification (RFID) technology to improve inventory tracking and reduce costs by pushing infrastructure costs to suppliers. This results in significantly lower inventory holding costs compared to industry averages. For Levi Strauss, the chapter highlights the "personal pair" kiosk initiative as a successful example of customer support and product differentiation, leading to increased sales, reduced costs, and significantly higher profits. This chapter contrasts the technology-driven approach of Wal-Mart with the customer-centric approach of Levi Strauss, both demonstrating successful supply chain strategies.
Affects of Ethical Concerns, Globalization, Diversity, E-Business, and Innovation have on Supply Chains: This chapter explores the multifaceted challenges and opportunities presented by ethical concerns, globalization, and innovation within the context of supply chains. It examines Wal-Mart's efforts to navigate ethical issues related to its global supply chain, including labor practices in foreign countries. The adoption of RFID technology is presented as a positive outcome of globalization and technological innovation. For Levi Strauss, the chapter discusses the ethical considerations surrounding its global manufacturing operations, highlighting its efforts to ensure worker rights and address health concerns in various regions. The chapter also showcases Levi Strauss's use of Terms of Engagement (TOE) to evaluate suppliers based on ethical and performance criteria. The overarching theme is the necessity of considering these factors for sustained competitive advantage in a globalized marketplace.
Keywords
Competitive advantage, supply chain management, Wal-Mart, Levi Strauss, RFID technology, globalization, ethical concerns, innovation, customer support, cost reduction, product differentiation.
Frequently Asked Questions: Wal-Mart and Levi Strauss: Achieving Competitive Advantage
What is the main topic of this text?
The text examines how Wal-Mart and Levi Strauss utilize their supply chains to achieve and maintain a competitive advantage. It analyzes their strategies and explores the impact of factors like technology, ethics, and globalization on their supply chain operations.
What are the key themes explored in the text?
Key themes include achieving competitive advantage through supply chain management; the role of technology (like RFID) in optimizing supply chains; ethical considerations in global supply chains; innovation's impact on competitive advantage; and the interplay between globalization and supply chain efficiency.
Which companies are used as case studies?
The text uses Wal-Mart and Levi Strauss as primary case studies to illustrate different approaches to supply chain management and achieving competitive advantage.
How does Wal-Mart utilize its supply chain for competitive advantage?
Wal-Mart leverages RFID technology for improved inventory tracking and cost reduction by pushing infrastructure costs onto suppliers. This results in significantly lower inventory holding costs.
How does Levi Strauss utilize its supply chain for competitive advantage?
Levi Strauss employs a customer-centric approach, such as the "personal pair" kiosk initiative, to enhance customer support, product differentiation, and increase sales while reducing costs and boosting profits.
What is the role of technology in the supply chains of these companies?
Technology plays a crucial role. Wal-Mart uses RFID for efficiency and cost savings, while Levi Strauss's focus is on customer-centric technologies that improve the shopping experience and drive sales.
What ethical concerns are discussed in the text?
The text addresses ethical concerns related to global supply chains, including labor practices in foreign countries for both Wal-Mart and Levi Strauss. Levi Strauss's use of Terms of Engagement (TOE) to evaluate suppliers based on ethical and performance criteria is highlighted.
How does globalization impact the supply chains discussed?
Globalization presents both challenges and opportunities. The text examines how both companies navigate ethical issues and leverage global resources while addressing concerns about labor practices and environmental impact.
What is the impact of innovation on competitive advantage?
Innovation, particularly technological innovation like RFID, is shown to be a significant driver of competitive advantage by improving efficiency, reducing costs, and enhancing customer experience.
What are the chapter summaries about?
The chapter summaries provide an overview of each chapter's content. The first chapter introduces the central theme and case studies. The second details the specific supply chain strategies of Wal-Mart and Levi Strauss. The third explores the impact of ethical concerns, globalization, diversity, e-business, and innovation on supply chains.
What are the key words associated with this text?
Key words include competitive advantage, supply chain management, Wal-Mart, Levi Strauss, RFID technology, globalization, ethical concerns, innovation, customer support, cost reduction, and product differentiation.
- Citation du texte
- James Tallant (Auteur), 2010, Wal-Mart and Levi Strauss Acheiving Competitive Advantage , Munich, GRIN Verlag, https://www.grin.com/document/167356
