We have all heard advertisements that claim "we cut out the middleman and pass the savings...

We have all heard advertisements that claim "we cut out the middleman and pass the savings along to you".

Now that you are familiar with distribution, explain why retailers such as Wal-Mart and Target remain successful in spite of being "middlemen".

Solutions

Expert Solution

Retailers such as Walmart and Target have very good marketing strategy and planning and are one of the biggest retailers in the world. Specially Walmart is famous for everyday low prices, and just as in famous in maintaining those low prices by negotiating tough deals with suppliers. It has very good market share in the world and because of that it sold product keeping low margin with low prices. Despite that low prices it earn very huge profit due to huge turnover. Walmart are involved in direct purchase from manufacturers and that is resulted for low cost raw material. It has biggest retail store in the world and has huge demand of its product that results in very handsome profit. Due to Walmart strategy the prices of many product are very low compared to same quality product in some other direct stores of manufacturing companies. These all are reasons why retailers like Walmart and Target remain successful in spite of being “middlemen”.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

We have all heard the saying, "You have one chance to make a good first impression"....

We have all heard the saying, "You have one chance to make a good first impression". If we were going to analyze this in social psychology terms, what would we say? What is the source of most of your knowledge about impression management? Minimum 300 words...thanks!

Please read the following on NC Economic Incentives: We have all heard that Amazon is planning...

Please read the following on NC Economic Incentives: We have all heard that Amazon is planning on opening a second headquarters. The hope is that this new HQ could bring in 50,000 jobs and $5 billion in investments. As a result, states are in a bidding war to attract Amazon. These bids are what we can economic incentives. Many politicians have argued that the government should provide economic incentives to companies in order to bring jobs to NC. The proponents...

We have all had visits at medical facilities or heard stories of visits wherein the staff...

We have all had visits at medical facilities or heard stories of visits wherein the staff were standoffish, rude or seemingly unfriendly. Have you ever thought that this was because the healthcare professional was “impaired”? Define the term “impaired professional”. What are some risks to “professional competence” and “performance”? Discuss several examples of physical impairment. Do you think any of these examples affected your medical treatment when you were presented with an “impaired professional”? (Risk management)

We have all heard about what is going on in the news today. Think about something...

We have all heard about what is going on in the news today. Think about something you see as falling in the category of “crime” and an instance of “deviance” in the news. Please be clear and fully explain your response using the appropriate terms for the example.

We have all heard the saying "The buck stops here". The Treadway report indirectly states that...

We have all heard the saying "The buck stops here". The Treadway report indirectly states that the "buck" stops with the Board of Directors and Senior Management. In addition, the Sarbanes-Oxley act provides both specific requirements and severe punishments for non-compliance. For your initial post discuss why the "Tone at the top" of an organization is essential to a successful Enterprise Risk Management program. Please be specific in your post and use detailed examples of the benefits of a strong...

Discuss the pros and cons of the following: Stock market investing Savings Bonds We have all...

Discuss the pros and cons of the following: Stock market investing Savings Bonds We have all heard the phrase, “Cash is king.” What does this mean? Do you agree with this statement? What is the difference between microeconomics and macroeconomics? Provide an example of each. Price discrimination. How can this be a good thing for you personally? Illustrate (draw) and explain the Laffer Curve. Where are we currently as a nation (in your opinion) on the Laffer Curve?

Company spokespeople are often heard to say, "We have to be in that market". What is...

Company spokespeople are often heard to say, "We have to be in that market". What is a likely explanation for this statement if the market is (a) China; (b) Germany; (c) Brazil; (d) Japan; (e) the United States? I’m 350 words, Give examples of products or services.

How many ways are there to pass out 20 candies (all candies are identical) to 6...

How many ways are there to pass out 20 candies (all candies are identical) to 6 children? Based on the following conditions: -No restriction -Every child receives at least one candy. -No child receives the same number of candies.

Consider the statement: “It’s important in business today for all firms to work to cut out...

Consider the statement: “It’s important in business today for all firms to work to cut out the middlemen. Intermediaries represent costs that can be saved by finding ways to cut them out of the system. Down-channel buyers always benefit when this happens.” Do you agree with this statement? Why or why not? Discuss and be specific in arguing your points.

We have heard rumors of vicious honey badger attacks in the forests of northern Michigan. In...

We have heard rumors of vicious honey badger attacks in the forests of northern Michigan. In an effort to clear the good name of honey badgers everywhere, we do some research and discover that nation wide there is about 0.5% of being attacked by a honey badger. We take a sample of 1100 honey badgers. Can we use an approximately normal distribution? Find the probability of having at most 6 honey badgers involved in an attack on a person? Suppose...

Subjects