When I was browsing my classmates’ blogs, Vivian Leung’s post really attracted my eyes. Her blog reminds me of the news I read a few days ago on The forbes. I totally agree that in her post she discussed about whether big is a better thing to businesses. But, this is inverse to what we have learned in Comm101 class.
More stocks means more flexibility in operation. The small express stores are not able to serve residents in that area with high level of demand of daily things. So their stocks are less than the general stocks in other areas. If Walmart prepares their stocks according to the needs of these customers, this would be a huge and complicated process to monitor the inventory. However, fewer stocks means fewer operating cost, this can even help Walmart to operate more efficiently. But, this does not mean that Wal-mart will give up their big-box stores. I believe that it can benefit from both small express and big-box stores as these 2 are facing different market segment. The express one can be a new market segment Walmart explored. In both ways, Walmart can benefit from economies of scale then save costs.