Walmart's Successful Porter's Generic Strategy Model

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Wal-Mart Wal-Mart's successful Porter's Generic Strategy model Wal-Mart's management has put several strategies in place to ensure they remain relevant within the, market and attain higher profit margins than their competitors attain. The incorporation of the Every Day Low Price (EDLP) proved to be successful for the company. The strategy they used based on the Porter's generic strategy model was the cost leadership strategy that involved Introduction of the Every Day Low Prices (EDLP) concept It pioneered the "hub and spoke" distribution system by establishing huge automated distribution centers. This meant bulk buying on a large scale where producers were under increasing pressure to sell cheap. Lower product prices than rivals such as Kmart and Sears Roebuck. This gave them the competitive advantage. Wal-Mart also pioneered Point of Sale scanning to help producers because printing the bar codes on their products. This meant that Wal-Mart held the minimum possible level of stock. This was an effective cost cutting measure making it able to provide products at lower prices by reduction of distribution cost. Their distribution costs came down to were 3% of Sales. Porter's generic strategy model Based on Porter's view it is necessary to adopt a cost leadership strategy and only the successful strategy for the Wal-Mart retail was the cost leadership due to its advantage edge over other strategies from the porter's model (Mintzberg, et al., 2008). Wal-Mart's dominance

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