Case Study Of Walmart's Key Competitive Strategy

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Q: Analyze the competitive strategies: What is their key competitive strategy? Are they effective and why? A: Walmart has been able to preserve market leadership position primarily due to its efficient integration of suppliers, manufacturing, warehousing, and distribution to stores. Its “supply-chain strategy” has four key components: vendor partnerships, cross docking and distribution management, technology, and integration. This management strategy has provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer. Walmart’s low-cost leadership strategy and differentiation strategy support the supply-chain strategy in order to retain competitiveness. According to a University of San Francisco case study, it was revealed that “[Walmart’s] competitive strategies are very effective because it provides consum...

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