Outsourcing; Link to Strategy Walmart’s Sam’s Club outsourced 10,000 jobs (about 9% ofSam’s Club’s workforce) to independent marketing firms. The marketing firms provide in-storeproduct demonstrations. Most of the 10,000 jobs were part-time jobs. Industry analysts say thechange was a smart move because it allowed Sam’s Club to focus on other key strategic issues andto eliminate a significant portion of the high costs associated with training, hiring, and managing apart-time workforce.Required1. What type of strategy do you think Sam’s Club follows, cost leadership or differentiation, and why?2. Do you think Sam’s Club’s decision to outsource the product demonstration activity is consistent withthe firm’s strategy? Explain briefly
Outsourcing; Link to Strategy Walmart’s Sam’s Club outsourced 10,000 jobs (about 9% ofSam’s Club’s workforce) to independent marketing firms. The marketing firms provide in-storeproduct demonstrations. Most of the 10,000 jobs were part-time jobs. Industry analysts say thechange was a smart move because it allowed Sam’s Club to focus on other key strategic issues andto eliminate a significant portion of the high costs associated with training, hiring, and managing apart-time workforce.Required1. What type of strategy do you think Sam’s Club follows, cost leadership or differentiation, and why?2. Do you think Sam’s Club’s decision to outsource the product demonstration activity is consistent withthe firm’s strategy? Explain briefly
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Outsourcing; Link to Strategy Walmart’s Sam’s Club outsourced 10,000 jobs (about 9% of
Sam’s Club’s workforce) to independent marketing firms. The marketing firms provide in-store
product demonstrations. Most of the 10,000 jobs were part-time jobs. Industry analysts say the
change was a smart move because it allowed Sam’s Club to focus on other key strategic issues and
to eliminate a significant portion of the high costs associated with training, hiring, and managing a
part-time workforce.
Required
1. What type of strategy do you think Sam’s Club follows, cost leadership or differentiation, and why?
2. Do you think Sam’s Club’s decision to outsource the product demonstration activity is consistent with
the firm’s strategy? Explain briefly
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