Wal-Mart Stores in 2003
The Wal-Mart Discount Inc. was founded in the year 1962 by Sam Walton. The concept behind his retail-stores was to transfer the discount store model from bigger cities to small towns. This was at that time a bold move which resulted in virtually no discount-store competition near the newly founded markets.
Another advantage of Walton's stores was the idea of volume. The strategy lies in purchasing the goods at lower prices and selling the goods to customer at much lower prices, cutting the price as far as possible and increasing the profit by increasing the number of sales. This ferociously increases the competition in the market and Wal-Mart competes with all its competitors till it is dominant…show more content… Its competitive advantage on the other hand is that the competition is not able to imitate the way Wal-Mart is doing what it does. This results in the fact that Wal-Mart's business model is a complex configuration of so many factors that it is nearly impossible to put a finger on a factor that makes the difference and gives Wal-Mart its competitive advantage.
I think the strategy of Wal-Mart is a solid system and has been proven not only in the US market but in many different one through Europe and Asia. With the idea of creating a very fast and high tech infrastructure system while offering a waste quantity of goods Wal-Mart has establish a very solid and sustainable backbone for its retail system. The question which concerns me more is if the general system of discount-stores has a future in itself. I think Wal-Mart has and will fend of its big competition very good and also acquire new markets, e.g. China. Where I'm not so certain about is the concept of discount stores which are located outside of bigger cities or in smaller cities and offer a waste portfolio of products. In my personal opinion, which I can't really support with any theory or any kind of data, is this a store model which will loose more and more customers in the years to come. This could be the biggest threat to