Wal Mart's Business Level Strategy

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1. What sources of cost advantage does Wal-Mart rely upon to execute its business-level strategy in the U.S.? Provide evidence for your answer. Introduction: Walmart one of the largest chain stores has a famous mantra “Ever Day Low Prices” has been attracting millions of customers around the world with their value chain activities. Walmart has lots of cost advantage and strategies over its competitors. Walmart has been able to execute its business level strategies with lot of success, and efficient policies but when it comes to success in overseas market, the prospect looks very grim according to standards of Walmart. Business Level Strategy with Sources of Cost advantage: Walmart has efficiently used its inbound logistics like VMI…show more content…
Sam Walton’s early leadership has made a huge impact on the company’s overall progress and development. Sam allowed the employees to work with pride and also motivated them with different reward programs. Walmart runs and maintains its own fleet of trucks (around 3000 trucks and 12000 trailers), which makes the ground transportation efficient and effective. Walmart doesn’t have to deal with any independent trucking company which saves them lot of time and money, also enabling to reduce lead time for the inventory to reach to individual stores with 19 distribution centers around US. Walmart has been very successful in marketing its global slogans like “Every Day Low Prices”, “Save Money Live Better” which creates lot of excitement amongst the customer enabling Walmart to make more sales with the help of cheap marketing campaigns and advertisement. One vital part of the Walmart cost advantage would be location because Walmart is able of buy land in rural/suburban places where there are plenty of people but lack of market and trade centers. 2. Do those sources of cost advantage enable Wal-Mart to achieve a sustainable competitive advantage in the U.S.? Use internal analysis tools to support your answer. The cost advantage that Walmart has helps to wipe out the threat from new competition. Due to large economies of scale Walmart is able to thrive and send
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