Walmart competitive advantage

Walmart operations strategy

International expansion: International presence and expansion of the brand is also a great strength in itself. However, the main generic strategy applied in the business relies on minimizing cost. However, the picture has improved a lot during the recent years. For example, thanks to the latest changes, customers are able to collect their online orders from stores and they can also get text reminders from the pharmacy. It has matched the two to create maximum value for the customers. Wall Mart competitive advantage relies on cost leadership. The brand is investing in both digital technology and HR for improved customer service and an overall great customer experience. It is investing in digital tools to continuously improve customer experience which has also led to high sales.

Most brands that have been able to build the low cost business model are exploiting economies of scale to create this advantage. It has also framed attractive returns policy for the sake of customer convenience where people can return a product within 90 days with or without a receipt.

Current markets are those where the business has existing operations. This intensive growth strategy involves providing entirely new products in new markets, which are usually industries or sectors where the company does not yet operate.

An efficient utilization of online sales channel contributes to the level of cost-efficiency of retail operations and about 75 percent of walmart. Generally, Walmart competitive advantage can be sustained in the global marketplace in long-term perspective.

how walmarts choice of market focus contributes to its competitive advantage

Walmart is achieving the three competitive advantages simultaneously. The brand is investing in both digital technology and HR for improved customer service and an overall great customer experience.

One can define competitive advantage as what a company may offer, or may perform better, that its consumers hold dear but its rival competitors cannot compete.

walmart competitive advantage supply chain

Pricing strategy: This is the key strength of the brand upon which its entire business model rests. The brand was attacked severely in past for its unethical supply chain and labor practices. It has not just helped it build a great brand image that is popular for its low costs model but also a large customer base.

Walmart competitive advantage pdf

Moreover, the report contains analyses of Walmart leadership and organizational structure and marketing strategy and discusses the issues of corporate social responsibility. Every expense should be followed with profitability, even business trips. Walmart is interested in the suggestions and opinions of its associates using them as a link between upper management and the customers. This change is more evident in the US market and it is being actively integrated into marketing communication message of the brand. Walmart uses strategies in competitive advantage, change management, diversity management, recruitment and selection, compensation and benefits, and organizational climate to remain the leading retailer in over 28 different countries. The cost leadership generic strategy requires that product development must focus on new products that do not impose costly processes. These things help it retain its popularity while also improving its sales in markets inside and outside US. It has not just helped it build a great brand image that is popular for its low costs model but also a large customer base. Due to increasing level of health-consciousness of consumers, Walmart is attempting to increase its range of organic options and fresh produce. As shown in figure 2, the framework focus on the adoption of local responsiveness, aggregation of economies of scale and arbitrage of absolute economies under the globalization of markets. This condition enables the company to adjust its selling prices accordingly. Walmart Stores Inc.
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Walmart Sources of Competitive Advantage