Wal-Mart’s Strategy for Long-term Competitive Advantage

Supply chain innovation and talent strategy Wal - Mart stores create value for customers through efficient and innovative supply chains. This strategy leverages the concept of low cost procurement and IT systems to achieve a faster process. This allows companies to associate suppliers with other stakeholders for effective planning and implementation (Bergdahl, 2004). On the other hand, the data exchange system helps suppliers to receive purchase order information and electronically provide invoices, while reducing costs and increasing productivity.

Wal-Mart needs to address two key areas in order to maintain or acquire a stronger long-term business position. This strategy has been enviable in the past 30 years and does not rely on diversity to maintain its growth and competitive advantage. Given its current position in the industry, Wal-Mart may continue to maintain a single business strategy and strive to maintain and expand market share. However, this strategy is dangerous (Thompson & Strickland, 1995, p. 187), as focusing on a single business strategy is similar to "putting all company eggs in an industrial basket". In other words, if the retail industry stagnates due to the economic downturn, Wal-Mart may be difficult to achieve past revenue performance.

To answer the following questions, please refer to the case study provided by Wal-Mart. a) The success of Wal-Mart depends on the ability to offer "always inexpensive" to customers. How can this strategy help maintain industry competitive advantage. Wal-Mart is the cost leader. They are using this versatile strategy to offer lower prices to competitors to maintain the industry's competitive advantage. - In 1962, Wal-Mart opened its first store in Rogers, Arkansas. In 1970, Wal-Mart opened its first distribution center and headquarters in Bentonville, Arkansas, and Wal-Mart was listed on the New York Stock Exchange. Just nine years later, Wal-Mart's annual sales exceeded $ 1 billion. In 1988, the Wal-Mart Super Center opened nationwide. Just three years later, Wal-Mart opened its own store in Mexico City, Mexico, and made Wal-Mart an international company.

Wal-Mart's case analysis on competitive advantage and strength of competitiveness can explain the performance of Wal-Mart in the discount retail industry. It is a specific factor in industry and company. After the Second World War, the style of the retail industry in the United States evolved into a discounted commercialization. At that time, Wal-Mart became a leader in the discount retail market with sufficient speed to develop the overall cost leadership model by taking advantage of trends. - One of the largest retail chains in Mexico, comelci is facing a serious dilemma. Since Wal-Mart proactively entered the Mexican retail market, Comerci discovered that it is becoming increasingly difficult to maintain competitiveness