Business Models and Systems Check Point

After considering a local business whose services I frequently use is the Wal-Mart Super Center in Deming, New Mexico. Wal-Mart’s main components of their business model are a competitive advantage; because, they offer products at a discounted rate compared to other grocery stores. I believe that Wal-Mart has the ability to reduce their prices so drastically due to the amount of product that they purchase and sell at the one time. When a company buys in bulk, they are able to get products at a discounted rate. At the already discounted rate that Wal-Mart purchases product, they are able to increase the amount per item to make a profitable profit on the product sold.
    The three components that make up the business system for Wal-Mart is customer service, competitive prices, and the large selection of merchandise they have to offer. They keep their edge by not only keeping their prices low but offering a one stop shopping. You are able to do your grocery shopping as well as purchase any household items and or equipment at a discounted rate. Most Supercenters also offer a place to get hair-cuts and total eye care as well. This gives Wal-Mart an upper hand in the living industry.   As Wal-Mart comes up with new innovative ideas, more and more people will continue to shop there, because they will not have to do any traveling to get everything done in one store. This could put Home Depot out of business to if they aren’t careful.