Walmart can use its resources, such as distribution facilities, information systems, knowledge and other capabilities and skills, more efficiently and effectively over a large number of locations. Further, it needs to address withstanding a substitute from online retailers, the substitution, Case 8: Sustaining Competitive advantage The number of Walmart’s stores including both US and international has also grown a lot in the recent years. Generally, Walmart competitive advantage can be sustained in the global marketplace in long-term perspective. Although competitive advantages can assume a wide range of forms, they are typically characterized by a combination of skills and technology that provide improved efficiencies and economies that facilitate firm performance and profitability. One of the factors that make Walmart stand out as compared to the competitors is their customer-focused strategy. Tesco PLC (2018). Walmart has lots of cost advantage and strategies over its competitors. The main international markets where the company operates its retail and wholesale units as well as e-commerce websites include Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom. From local adaptation to battle with local companies, Wal-Mart’s choice of market has been greatly successful. Efficient and effective use of resources. Its revenue surged past 500 Billion dollars in 2018. Generally, Walmart competitive advantage can be sustained in the global marketplace in long-term perspective. Online grocery market share in the United States from 2015 to 2020. ‘We Operate for Less’ and ‘We Buy for Less’ programs saving us USD150 million in China[5]. The main strategy behind Walmart is “Everyday-low-prices”. In an increasingly globalized marketplace, some corporations are succeeding while others are failing by virtue of a valuable competitive advantage. Walmart U.S. operates super-centers in 49 states, discount stores in 41 and other small formats including neighbourhood markets in 36 states. Under the health and wellness category it sells pharmacy, optical services, clinical services, and over-the-counter drugs and other medical products. Walmart's key strength is that it is a cost leader. You can find more information about the business in Walmart's official website or Wikipediaâs article. Digital Growth. To support its retail network, it has also established 367 distribution facilities globally of which 179 are located in US and 188 internationally. The company can replicate this strategy to other markets in … Wal-Mart has reached out to places where population was very low. Our omni-channel presence provides customers access to our broad assortment anytime and anywhere. Available at: http://www.cnbc.com/2017/01/30, Statista (2018). Three Ways Walmart Is Making Big Strides In Its Battle Against Online Retailers. So, what are those Competitive Advantages of Wal-Mart? For years, Walmart has been able to sustain its distinct advantage of being the most popular and leading retail chain of US. You also have the option to opt-out of these cookies. Among the competitive advantages include resources and knowledge. Moreover, its focus on customer service and innovation has also helped it strengthen its distinct advantage. My interest areas are Economics, Financial Analysis, Stock Analysis, and Business Strategy. If the brand has been able to sustain its low price advantage the reason is it has smartly managed a large supply chain. What Are The Pros And Cons Of Starting A Freezone Company In UAE? The speed with which this company has penetrated each country is noteworthy. Walmart is known to favour its customers the most; more than any other retailer. Alexa.com (2018). This cost-saving opportunity is represented in inbound and outbound logistics. China Retail Sales YoY. Experimenting with less risk. So, this strategy also works to attract them and being their favourite. McDonalds Sources of Competitive Advantage, Differences Between B2B and B2C Marketing, Business Growth Strategy of Netflix: A case study, Business Growth Strategy of Facebook: A case study, Business Growth Strategy of Amazon: A Case Study. Walmart business description taken from the companyâs financial report: âWalmart Inc. ("Walmart," the "Company" or "we") helps people around the world save money and live better â anytime and anywhere â in retail stores and through eCommerce. Management Case Studies. Online grocery sales set to surge, grabbing 20 percent of market by 2025. Grocery and general merchandise constitute the largest range of products sold by Walmart accounting for 56% and 33% of total merchandise sales respectively. Available at: https://www.apptentive.com/, Trading Economics (2017). Wal-Mart: IT Inside the World's Biggest Company. Abhijeet has been blogging on educational topics and business research since 2016. Available at: http://www.nielsen.com/, Supermarket News (2017). WalMart’s competitive advantage is a result of several key strategic choices. Leading on price is designed to earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at everyday low prices (“EDLP”). As discussed above of the Walmart China, the company is taking the local, Assessment of Walmart five force models: Walmart is one of Target Corporation 's closest rival which needs to address the pressure imposed by the external environment factors. Transferring Money Abroad Without Overpaying in Fees? With its growth each year, Walmart has grown to have their stores in almost 30 countries now. In 2018, its revenue surged past 500 Billion dollars. Walmart’s success stems from that fact that it doesn’t have just one competitive advantage, it has many competitive advantages. As a result Wal-Mart successfully achieved the market monopoly of several small locations. Costco Wholesale (2018). It has made itself an ideal example for globalization within the retail industry. However, it has also grown its presence in more countries and its number of international retail stores has crossed 6300. 2017 Annual Data Breach Year-End Review. Price leadership is core to who we are. I have finished my graduation with a major in Economics.
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