Case Study #1: Wal-Mart Stores Inc. in 2010
Overall, this case study was based on the success Wal-Mart has become over the years. “Wal-Mart had a risen to become the largest U.S. Corporation in scales with over $405 billion in the revenues; Wal-Mart had far eclipsed Kmart, whose sales had fallen to a fraction of Wal-Mart’s.” Also, in the case study, it talks about the history on Wal-Mart, gives details on how the operation works with Wal-Mart national or international, culture, the discount retail industry, competitors and etc. * What are Wal-Mart’s most critical competitive advantages? Wal-Mart most competitive advantage known as "cost advantage", which means they do the same things for less. One of the main motives they do which is through a highly advanced purchasing and inventory system that automatically purchases items as they start to run out. When the company main competitive advantage is based off of many key strategic choices, it’s not just their low prices on their brand. Their strategic choice of location has given Wal-Mart a first mover advantage. By Wal-Mart being strategically placing their stores within the proximity of their distribution centers, Wal-Mart is able to keep their in-house inventory at a minimal. Their distribution network is based on the hub-and spoke concept, which mean several places of the store are no more than a day’s drive from its distribution centers and replaces goods within 24 hours.
* How did Wal-Mart develop their advantages?
In this article, the way Wal-Mart develops their advantage which is a transition from regional retailer to global powerhouse largely to changes in and/or the effective management of its supply chain. Then, Wal-Mart focuses on developing a cost structures that allowed it to offer low everyday pricing. The key to achieving this goal is to make a way the company replenishes inventory the centerpiece of its strategy, which relied on a logistics technique. The company benefits...
Please join StudyMode to read the full document