Wal-Mart's Competitive Advantage Case Study by Pico

A discussion on how the scale of operations enables Wal-Mart to achieve the most competitive product-price mix in the industry.
# 146216 | 937 words | 4 sources | APA | 2010 | BD
Published on Dec 23, 2010 in Business (Companies)


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Description:

The paper explains how as the largest retailer in the world, Wal-Mart is in a unique position to achieve economies of scale leading to a sustainable competitive advantage. The paper discusses how the retail giant can reduce prices more than the smaller retailers, can offer a widely diversified product selection targeting a wide variety of consumer segments and can enjoy a considerable level of bargaining power with its suppliers. The paper also points out that the current economic crisis has favored Wal-Mart, since economic pressures are forcing customers to spend less.

From the Paper:

"Wal-Mart applies its business model globally. Unlike most retailers, it is able to benchmark best practices internationally. As a result it is able to create a sustainable competitive advantage. The other retailers cannot match its product variety or its price advantages. Both aspects have led to Wal-Mart's market leadership position. As a price leader Wal-Mart is able to achieve a greater level of customer loyalty than its competitors. As a result it is able to generate greater business volume than the other retailers."

Sample of Sources Used:

  • Wal-Mart Stores, Inc. Company profile published by Datamonitor. Accessed from Business Source Premier.
  • Hill, Charles, and Gareth Jones. (2007). Strategic Management Theory: An Integrated Approach. McGraw Hill/Irwin.
  • Jones, John, et al 2004, '10 principles of change management', Strategy + Business magazine, Booz & Company Inc.
  • Kotter, John P 1995, 'Leading change: why transformation efforts fail', Harvard Business Review, March-April, pp 59-67.

Cite this Case Study:

APA Format

Wal-Mart's Competitive Advantage (2010, December 23) Retrieved May 28, 2023, from https://www.academon.com/case-study/wal-mart-competitive-advantage-146216/

MLA Format

"Wal-Mart's Competitive Advantage" 23 December 2010. Web. 28 May. 2023. <https://www.academon.com/case-study/wal-mart-competitive-advantage-146216/>

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