Walmarts Core Competencies

(3) In an effort to replace foreign- sourced goods sold at Wal-Mart stores with American-made ones, Wal-Mart developed its “Buy American” program. By 1989, the company estimated it had converted or retained over $1.7 billion in retail purchases that would have been placed or produced offshore, and created or retained over 41,000 jobs for the American work force.

Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:

Wal-Mart didn’t just get by with cost-saving methods. They were ahead of their competitor’s technology wise too. Even in the 1970’s, Wal-Mart was able to track inventories in their warehouses and link it with stores. They tracked their sales data for specific items and could increase or decrease their inventory accordingly, achieving a higher efficiency than other retail companies. Another aspect that Wal-Mart felt strongly about was expanding there reaches. In 1978, they introduced a Pharmacy, auto center and jewelry divisions.

In Wal-Mart’s strategic planning stage, they are highly regarded as visionaries. One thing that Wal-Mart prides themselves in is the fact that they develop

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

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

A resource based view can help determine, and maintain a competitive advantage for Wal-Mart. In order to gain a clear understanding of their advantage, or lack thereof, it is vital that Wal-Mart determine what resources they have available to them. Once these resources are identified they must capitalize on them, and ensure that they provide them with a sustained advantage, and not a temporary advantage. For instance, Wal-Mart might find that there is a manufacturer that is not being used to their full potential, and is able to provide them with fast production and quick delivery of items for a great price. It would be beneficial for Wal-Mart to take advantage of this opportunity, as well as build a long lasting relationship with this manufacturer that will carry them both into the future.

All companies have core competencies that they use to differentiate their company, product, or service from the competition, Sears is no exception. Also, it is common for a company’s core competencies to change, as their industry progresses through phases and shifts its emphasis between product and process innovations (Regis University, 2011), Sears is no exception. Yet, when a company’s core competencies become misaligned and no longer supports their strategic intent the business is in danger of becoming obsolete (Regis University, 2011), as their customers no longer perceive the unique benefits the company has

The analysis carried out with the help of McKinsey's 7-S Framework shows that Wal-Mart has instituted effective business management policies and strategies to keep its market leadership intact and gain a competitive edge over other competitors. The business strategies, staffing policies, skills development, leadership styles, organizational structure, and organizational culture; all business affairs, activities, and strategies are aligned with

To lower production costs or producer transaction costs. Wal-Mart.com is able to lower production costs due to the fact that the number of employees, rent and advertising costs will be respectable lower for the business online than for a discount store. Instead of intermediate warehousing, Wal-mart.com will directly deliver the ordered number of products and in this regard lower its producer transaction costs, which will shift its supply curve to the right, causing a right shift of the demand curve as well.

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Ans:Wal-Mart,Inc runs a chain of large, discount department stores.it is the world’s largest public corporation by revenue. Walmart is the largest private employer and the largest grocery retailer in the United States. Walmart is one of the best known industries all over the world. Its concentration of a single business strategy is the basis of its success over the decades by this strategy without having to rely upon diversification to sustain its growth and competitive advantage. The leading marketing strategies of Wal-Mart are low prices, service and smile. However by adapting this strategy, it has risked itself by putting all of a company’s egg in one industry basket. While its global strategy worked elsewhere, the results were bad in Germany and Korea that Wal-Mart withdrew from those countries.

The strengths of a company are the qualities that enable them to accomplish their mission. According to walmartstores.com Wal-mart strives to help people save money so that they can live better. Wal-Mart is known as a powerful

Bonini, S. M., Mendoca, L. T., & Oppenheim, J. M. (2006). When Social Issues become strategic. McKinsey Quarterly, 20-32.

Wal-Mart’s competitive advantage is driven by its low-cost, high volume strategy which aims to increase profits and customer satisfaction. Sustainable competitive advantage indicates a company’s future success and is determined by different factors. These factors include organizational capabilities such as tangible resources, intangible resources and human resources. One main component of sustained competitive advantage is having superior returns sustained over a long period of time. Wal-Mart has had superior returns and has achieved competitive advantage in the market by making industry key success factors advantageous; they are committed to being cost-leaders and achieving ultimate customer satisfaction. However, their low-cost