Wal Mart Competitive Advantage Essay Example

retail merchandising.  WM’s web of information system extends far beyond the walls of any one store.  The enthusiasm among employees supports a level of involvement and empowerment that is unique among large retail organizations.  It was able to combine folksy charm and home spun business wisdom with cutting edge information technology and supply chain management.

Expanding range of goods and services but keeping in mind the price policy. Random can be beaten on price.  Supercenter shops combining the European concept of discount with the hypermarket. 7. Why have other retailers had limited success in imitating WM’s strategy and duplicating its competitive advantage?  All negotiations are directly between manufacturers and Wal-Mart, WM refuses to do business with manufacturer’s representatives and agents. To avoid dependence on any supplier, WM limits the total purchases it obtains from any supplier.

Warehouse club accessed through membership. Items available in multiple packets and catering-size packs. Maximize purchase, minimize operation cost and passing the saving to the members through lower price.  Close collaboration with supplier. Exchanging data automatically, so supplier understood the needs for products faster.  WM’s marketing strategy was built upon its slogan “Everyday Low Prices”: WM’s customer appeal was as a price leader across its entire product range, all the time- it did not engage in promotional price cutting. WM was able to rely on word-of-mouth communication of its merits and was able to spend comparatively little on advertising and other forms of promotion.

Distribution schema and delivery in such way that the truck was load to pass supplies to many stores faster and cheaper.  Combining centralized and decentralized managements of stores. 8. What measures do you propose to WM to sustain its

recent performance and defend against competitive (and other) threats?  One of the main causes that WM wasn’t so successful on international market was the fact that it didn’t have a consistent approach to different national market. In order to achieve more success in this country in Europe or Asia it should pay more attention to what the clients ask to be different.