Strategy Management
What are Wal-Mart’s competitive advantages? Wall-Mart Competitive advantages:
|Company |Total Assets |Total Sales |Net Profit |Total Equity |
|Wall-Mart |180,663 |418952 |16389 |71655 |
|Target |43705 |65786 |2920 |15487 |
|Kohl’s |6315 |9120 |643 |3511 |
X = X =
|Company |Net profit |Total Asset |ROA |Equity Multiplier |ROE |
| |Margin |Turn | | | |
|Wall-Mart |3.3% |2.6 |8.5% |241.1% |20.4% |
|Target |3.8% |0.8 |3.1% |175.4% |23.5% |
|Kohl’s |7.1% |1.4 |10.2% |179.4% |18.3% |
This help us to see that the asset turnover and the size of the company are one its competitive advantages
We can see that Wall-Mart has nearly double the assets turnover as Kohl’s which means that Wall-Mart is very efficient with its assets, as for every $1 in assets it is gathering $2.6 in sales , and we can see that it is clearly low cost leader
The other two competitive advantages are prices &