Wal Mart

870 WordsJul 3, 20114 Pages
What, historically, has been Wal-Marts key source of competitive advantage in discount retailing? WalMart’s competitive advantage is a result of several key strategic choices. • First, WalMart’s choice of geographic location in rural/small town locations that were not being served by competitors allowed it to establish itself as the sole discount retailer in these areas. • WalMart’s inventory management strategy. From the onset, WalMart has been a leader in implementing new and cost effective methods to manage inventory. Merchandise is tailored to local market demand via “traiting” where a product’s movements are indexed over a thousand store and market traits. • WalMart’s operations strategy. WalMart’s operations activities fit…show more content…
They expect their stores to keep expenses at a bare minimum and pinch pennies wherever possible .Wal-Mart has a policy know as plus one they demand that suppliers either lower their prices or increase the quality on every item every year. You MIGHT get a better deal by purchasing in volume at Sam's Club, but most of the time the prices are pretty much the same. Non-food items can actually be more expensive at Sam's. Take into consideration that you have to pay a membership fee and most advantages go away. 3. Compare Wal-Marts competitive advantage in 1986 to the scenario in 2011? Wal-Mart is the largest public corporation according to the Forbes Global, it has been running chain of stores and warehouses nationally and internationally.Wal-Mart has been providing the thousands of brands under one roof at low cost compared to its competitors. Wal-Mart has competitive advantage over its competitors because of the following core competencies. • As promised in its slogan Wal-Mart has been providing products at lower prices, it is possible due to the low cost operations. Wal-Mart share the value of low cost with customers by selling the products at lower prices. • Hard working, efficient and process oriented employees has been working with Wal-Mart. • Better use of technology to directly connect with supplier and partners. • Implemented Just-in-time inventory process to reduce the cost of managing inventory at Warehouses • Sam's Club Expanding and

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