Wal-Mart: Kroger's Business Strategy

1) What sources of cost advantage does Wal-Mart rely upon to execute its business-level strategy in the US? Walmart was able to fly under the big company’s radar for a while by putting stores in rural towns. They were able to buy land for cheap and once they opened a store the town could not support another store of similar size. And everyone played a part in keeping the cost down, from owners buying cheap hotel rooms to people taking out their own trash. They wanted to drive the cost down as low as it could possibly get. With suppliers Wal-Mart presented unlimited growth potential due to its size, so Wal-Mart could easily press for a lower price and high quality and suppliers would deliver to keep their business. They

Wal-Mart has been successful in becoming the number one retailer. Purchasing items in large quantities is effective in lowering the prices for the consumers. Lower prices bring the customers in the doors which in turns sells the large scale of purchasing that Wal-Mart does. With the large scale of purchasing brings a cost advantage. This cost advantage is passed onto the customer.

Wal-Mart chains are essentially a franchise of convenince, featuring every item in every department. Consumers have a one stop shop for items such as house supplies, auto

Cost Leadership Strategy: Walmart success can be credited to its cost leadership strategy, the company has been selling goods at cheaper rates when compared to its competitors. This strategy of theirs has attracted millions of customers and it has been one of the reason for their success, they build warehouse like stores that only sells products which has helped them reduce costs and give lower prices to

In addition, Walmart follows great competitive advantage and survival strategies. As I previously mentioned, other companies are far behind when trying to compete with the retailer. Due to its low prices, big stores and enormous variety of goods consumers are more prone to choose shopping at Walmart. Current financial situation makes it easier for Walmart to stay competitive as many consumers strive to make living by saving on the food through sales, low prices, and clipping coupons.

Wal-Mart is one of the largest grocery stores in the world, that is still growing even today. It has everything you would ever need from food, clothing, toys, and much more. It is a great place to go shopping with a lot of marked down prices. While walking through Wal-Mart doing your regular shopping you can stroll past a wide variety of people that like to shop here. If you are ever bored it is always amusing stoping by your local Wal-Mart and get a quick chuckle. This store can be closely related to a zoo. There are many types of amusing people you can run into some you might not want to be near at all. The three main types of people you may find in your local Wal-Mart are the couponers, the I woke up like this, and lastsly the bored teenagers.

The Wal-Mart business strategy on the philosophy of "everyday low prices" for the company. In other words, Wal-Mart is seeking labor cost leadership strategy has enabled economies of scale obtained by the company in a great extent. Effective use of the channel online sales contributes to the level of cost-efficiency of retail operations and about 75 percent of sales come from non-walmart.com store inventory [6] [11] .

Wal-mart is the biggest chain of retailer and consumer, which provides a large number of quality products under one roof. These include grocery clothing, pharmacy, toys, hardware and various CDs, DVD Musical instruments, consumer electronics, books etc. etc. Moreover, every Wal-Mart possesses McDonalds where people can eat and have a break while shopping. It also contains a photo shop so people can do shopping while their photos get ready.

Wal-Mart has been able to maintain a price leadership strategy due to the vastness of the corporation. It is said that within a 15 miles range, there must be a Wal-Mart for almost every customer in USA (Walmart, n.d.). With around 4,700 stores in USA alone, it has been able to become the routine shopping place of numerous households. Since the very beginning, Wal-Mart adopted the low-price leadership strategy and gradually started making profit based on the volume of sales (Hyde R., n.d.). From tires to electronics, Wal-Mart Supercenters are premises selling almost everything and in great varieties. After having been able to capture a vast number of customers and leading as a retailer with suppliers relying on Wal-Mart for more than 20% of their sale, it started leveraging its bargaining power against suppliers and pressuring them to keep lowering their prices. They are reputed in minimizing overhead and cost, especially when it comes to employees’ wages and utilities (Hyde R.,

Analysis for Business Policy: Strategic Management. Instructor: Dr. M. Reitzel, DeVry University, February 2007, Austin, TX. Members of the Team: Marcus Bedford Jon Cable Wayne Oulicky Constince Sanchez

Wal-Mart is number one in the Retail Giant Corporation across United States of America, and is the leading retail store in fifteen other countries. Wal-Mart continues to seek new and innovated ways to reach its customers on a daily basis. The store believes its success has been base upon its customers and being able to reach them with the new technologies of this Modern Age.

The success of Wal-Mart since the first store opened has allowed them to stay ahead of their competition. They are always planning, controlling, leading, and organizing starting at the corporate level and working down to the cashiers. Target is one of their direct competitors but Wal-Mart is still well ahead in the Fortune 500 ranking. Wal-Mart continues to find ways to appeal to their consumer base and that stems from solid management and leadership. They are using their resources and making changes both internally and externally.

The store in the competitive retail industry that is referred to as the giant is Wal-Mart. This store has leaded the retail industry’s market of profit and sales for years. The stores expanded to every nook and cranny and became a household name. The stores went from only retail items to grocery stores, to having restaurants such as McDonalds and Subway, to having hair salons, optical stores, and mechanic services. The retail giant boomed, and soon found itself at its peak and then consistently falling behind the competition. It has been found that in order for a business to succeed in a competitive market, it must shift with the market and not fight against it. This is something that Wal-Mart has

Being the world’s largest retailer, Wal-Mart will enter the international market by providing a wide variety of products at a lower price than its domestic competitors. In addition, one of the common strategies of Wal-Mart is to partner or acquire a local supermarket retailer who has already had a good knowledge of the market in order to save time & money. Wal-Mart is also famous for its great use of distributor network. They pay a lot of

Walmart's knowledge of the market is its wide range of customers who buy at retail are very big advantage compared to amazon.com and a very good foundation for success in the online market to Walmart in the near future to take advantage and become the market leader of online sellers. Factor that currently limits the growth and development of the Walmart stores is limited to the place of delivery, ie they do not deliver their goods to customers outside the U.S. and I think there are very large room for improvement at least to start in those countries where they are present and their physical stores .