After learning about the Hedgehog Concept, I decided to look at very successful companies, using the concept as a guide. One of the companies that best fit the concept is Walmart. From my knowledge of Walmart, its overall Hedgehog Concept fit is as follows:
At what can we be the best in the world? Walmart is the best at providing a wide variety of products at a much lower cost than competitors. Walmart has focused on this so much that they will match prices from other stores, even if that price is a result of a sale.
What is the economic denominator that best drives our economic engine? The economic denominator, in my opinion, is the cost/product. Walmart has so much buyer power that it can negotiate lower prices with its suppliers.
What are our core people deeply passionate about? Once again, I would say the passion of Walmart is providing products at a low price. Executives have made decisions that allow Walmart to operate at a much lower cost than many of its competitors. For example, Walmart uses and requires suppliers to use technology such as RFID tags to cut down its costs of receiving and storing inventory. By using RFID tags, Walmart is able to cut down on the number of employees required to receive inventory and maintain data regarding the overall balance of inventory.
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