Introduction
Walmart is multinational retailer organization that runs chains of storeroom in America, and most successful profitable business enterprise. Through the use of information technology, Walmart tracks its product growth and adjusts to a database to reflect the local demand of the products. Waltmart collectively uses information technology center for products in the stores and distribution center to manage stock level (Barrow-man, 2002).
How product design applied in decision-making of Wal-Mart?
The product design is the process of coming up with technique to advance on existing merchandises. It is an information intensive undertaking that has become progressively in today global competitive environment. Product design controls the characteristics and performance of the products consumer’s desires.
Product design ‘aimed’ at improving actual value of the products and ‘appears’ to customer’s affordable price. Walmart maintains inclusive contribution of all partners like suppliers to participate in product design, when outsourcing the production. The design interface of the products must be handled properly to minimize cost in product designs.
The design of a consumer product is not only the factory-made cost, but also the dominance of the quality and service delivered and how well they meet customer expectations. There is uncertainty in designing performance levels, what customer expect, and even in the final goals for the design (Barrow-man, 2002).
What is the Product Life Cycles in Wal-Mart?
The product life cycle is the period between the time products unveiled into the market until it withdraws from the market. Product development starts when a corporation develops a new product idea. During the introduction phase, a lot of money required for product upgrade and advertising. Product valuing is the crucial aspect during the development stage and product must become competitive, and the consumers automatically acquire the new product at a high price.
Growth phase provides product satisfaction. Wal-Mart shows the product it offers and differentiates them from the rival products, modifying the products and product protection done by Licenses and copyrights. This takes place when product improves its customer confident through product differentiation and product availability to the market, providing discount and product cost. During this product phase, product matures, and the company makes high sales and return.
Walmart has multi distribution channels which offer back distribution ways. During the decline phase, product maintenance cost of product is high than the initial profit gained. It is extremely difficult for a company to understand decline signal of the product and the life cycles of products at Walmart are varying from 3 months to 2 years. Walmart provides are fast-moving consumer goods, which are durables and groceries which have short ledge lives (Hong, 2000).
How different Issues for Product Development applied in the Wal-Mart?
There are several issues to be tackled during product development in Walmart. The change in demand of a product over a long time perhaps affects product life cycle. The issue of understanding the customer need and the economic changes may affect organization performance.
These issues arise not only from handling the wide variety of products point of view, but continually striving for error free product, and create high customer satisfaction. The market regulates to meet the ever changing and unpredictable consumer market. Market mix contemplation should be appropriate for the firm, so that product growth adjusts (Ulrich, 2001).
Conclusion
The product design considerably transforms the company perspective in respect to maintaining a competitive edge over its rival. Walmart has been able to sell products that sustain people and their environment through support of customers and communities around the world and product decisions are fast (Ulrich, 2001).
References
Barrowman, J. (2002). An Evaluation of Research on Integrated Product Development. Management Science 48(7): 938–953.
Hong, S. (2000). Balancing Concurrent Engineering Environmental Factors for Improved Product Development Performance. International Journal of Production Research 38(8): 1779–1800.
Ulrich, K. T. (2001). Product Development Decisions: A Review of the Literature. Management Science 47(1): 1–21.