1. Identify and Evaluate the Strategies That Wal-Mart Has Historically Pursued to Create and Sustain a Competitive Advantage.
DAVID BANJO
MGT 4199 1. Identify and evaluate the strategies that Wal-Mart has historically pursued to create and sustain a competitive advantage.
Answer: Wal-Mart’s pursuit and ability to sustain a competitive advantage has allowed the company to make use of many strategies. One of the strategies that Wal-Mart has made use of is the Expansion strategy. The company realized that building a new store will allow for increase market share value. The company opened new locations in the community with 5,000 to 25,000 populations. After their success in the rural areas, Wal-Mart moved to contiguous areas and then moved to adjoining areas. The expansion strategy made Wal-Mart the number one retail store in the United States. As Wal-Mart continue its expansion program domestically, the firm decided to go international. In 1994, Wal-Mart introduced its first overseas store in Canada. With its increase success and introduction in Canada, the firm moved to Mexico, Brazil, Great Britain, Japan e.t.c.
Furthermore, Wal-Mart realized that expansion domestically and internationally will not be possible without acquiring an existing retail firm. Therefore, this became the second strategy used by Wal-Mart by acquiring a retail store which will further or enable an expansion locally and internationally.
Third, the “always low prices” strategy is believed to be the strongest strategy used by Wal-Mart. The firm developed the idea of dealing directly with the manufacturer and with the power control by Wal-Mart (Porter fire factors) will enable it to deflate and get the best deal from the manufacturer and supplier. Among these are the ideas of treating its associates good, introduction of groceries and making the store a one stop shopping mart with well arranged aisle. This also includes a sophisticated inventory technology. All of these have allowed Wal-Mart to sustain a competitive advantage.
2.Based on your analysis of the case, what are the eight (8) most important
MGT 4199 1. Identify and evaluate the strategies that Wal-Mart has historically pursued to create and sustain a competitive advantage.
Answer: Wal-Mart’s pursuit and ability to sustain a competitive advantage has allowed the company to make use of many strategies. One of the strategies that Wal-Mart has made use of is the Expansion strategy. The company realized that building a new store will allow for increase market share value. The company opened new locations in the community with 5,000 to 25,000 populations. After their success in the rural areas, Wal-Mart moved to contiguous areas and then moved to adjoining areas. The expansion strategy made Wal-Mart the number one retail store in the United States. As Wal-Mart continue its expansion program domestically, the firm decided to go international. In 1994, Wal-Mart introduced its first overseas store in Canada. With its increase success and introduction in Canada, the firm moved to Mexico, Brazil, Great Britain, Japan e.t.c.
Furthermore, Wal-Mart realized that expansion domestically and internationally will not be possible without acquiring an existing retail firm. Therefore, this became the second strategy used by Wal-Mart by acquiring a retail store which will further or enable an expansion locally and internationally.
Third, the “always low prices” strategy is believed to be the strongest strategy used by Wal-Mart. The firm developed the idea of dealing directly with the manufacturer and with the power control by Wal-Mart (Porter fire factors) will enable it to deflate and get the best deal from the manufacturer and supplier. Among these are the ideas of treating its associates good, introduction of groceries and making the store a one stop shopping mart with well arranged aisle. This also includes a sophisticated inventory technology. All of these have allowed Wal-Mart to sustain a competitive advantage.
2.Based on your analysis of the case, what are the eight (8) most important