Walmart Competitive Analysis :: Business Case Study

Wal-mart case analysisCompetitive advantage and competitive dynamics What might explain Wal-Marts performance over time in rebate retailing? Is it the industry or company specific factors?Post Second World War, the style of style of retailing in the US evolved into discount merchandizing. At the time, Wal-Mart was quick enough to ride the tide and develop an overall follow leadership model that al miserableed it to emerge as a leader in the mart in the discount retailing space. Wal-Marts performance driven by overall cost leadershipWal-Marts strategy over time helped it hit leadership position in discount retailing. It used rural underserved markets to announce its arrival. It also used innovation levers, customer centricity, positioning as a low cost player, and effective stakeholder management including employees, suppliers, and stockholders to achieve distinctive competitive advantage. It succes sfully outperformed other firms in the industry leveraging its strategy to achieve overall cost leadership.The experience curve concept and was successfully adopted by Wal-Mart. The various levers it used to achieve cost leadership included,Achieving economies of scale Rapidly expand geographical footprint as well as number of stores, variety of stores, and store sizes Vigorous pursuit of cost reductions Aggressively deploy buyers negotiating advocator saving as estimated additional 3-4%