Walmart's Core Competency

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Wal-Mart core competency The core competency of a company is viewed as a section or field where a company excels most as compared to the competition in the same area of specialization. These core competencies are seen to be extremely hard for the competitors to copy hence giving the company the possibility of separating or differentiating itself from the others. A unique observation about the core competency is that it cuts across most of the services, products as well as the market borders of the company (Investopedia, 2013). Wal-Mart has had two major core competencies against which it pegs its competitive advantage over the other players within the chain-store business; price and logistics. The price factor stands out when one makes the decision to shop at Wal-Mart since they set prices lower than their competitors hence creating a large customer base. The price advantage they have comes from the fact that they are able to generate extremely large sales volumes hence being able to make profit and sustain running costs at comparatively lower profit margins as compared to competition. This is maintained at Wal-Mart since the competition would require massive scales to replicate this a fact that is hard to achieve (Expert Program Management, 2013). Wal-Mart also has the core competency in terms of a superior logistics system. Despite being one of the largest global retailers that is located in various parts of the world, Wal-Mart operates with a state-of-the-art
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