The relevance of choosing Wal-Mart lies in their enormous growth and their strategies to be and maintain their competitiveness in the free-market. Traditionally, Wal-Mart has had a low-cost, high volume strategy. The strategy aims at customer satisfaction through low prices and good customer service. Following are the key points of Wal-Mart’s strategy: Low cost: Wal-Mart has low operating expenses. One of the primary reasons for their low operating expenses is their superior distribution capability because of the location of stores, information management, etc High Volume: Wal-Mart aims to provide a high volume of products to ensure low prices and customer satisfaction.
One of the existing competitive advantages from this value chain analysis lies in the tie between the primary activity of logistics and the support activity of real estate. Wal-Mart has traditionally had the competitive advantage in the area of logistics. Wal-Mart has over 10,000 stores. In that staggering number alone, the amount of prime real estate locations, as well as ideal warehouse locations give Wal-Mart a competitive advantage
While the competitive advantage may be the customer experience, this may also be Wal-Mart’s best potential for improvement. As identified above, Wal-Mart has been slowly straying from the founding principles and this is one area in which they may have strayed too far. Wal-Mart believes in hiring very talented, customer-oriented employees. Because of such fast expansion, some quality has been sacrificed in the hiring of employees.
Their advantage of a strategic plan will allow them to think ahead In case we encounter a problem with competitors or employees or worse yet customers. It will also allow us to come up with new strategies to beat our competitors. When Wal-Mart arranges their strategic Plan they will know how, what and when they will need to perform at their best. They will know where the best location will be for them to set a store, or how low or high...