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WAL-MART ORGANIZATION INIMITABLE QUALITIES COMPETITIVE ADVANTAGE

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Masters
  • Page:
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  • Words:
    352

Wal-Mart Organization Inimitable Qualities Competitive Advantage2

WAL-MART ORGANIZATION INIMITABLE QUALITIES COMPETITIVE ADVANTAGE

Wal-Mart organization is rated as the second largest public corporation across the globe, having at least 2.2 million employees across the world, more than 10, 000 stores while having the ability to serve at least 200 million customers weekly (Wei 2014). Based on the financial data of its sales that accumulated to $ 7.5 billion hence a compound growth rate of 30.38%, the company is perceived to be successful (Barney 2013).

Wal-Mart low-cost strategy pose a competitive advantage across other competitive big-box stores hence its ability to win and keep customers. To attain the low-cost strategy, the company constructed a well supply chain that is more efficient (Stefanska 2014. The company is well renowned for offering training opportunities to its suppliers based on producing consumer goods more efficiently while directing the suppliers towards more cost-effective outsourcing options.

The organization applies the technique of reducing the product lines to only focus on most profitable stock-keeping units while having continuing reformats on store shelves purposefully to reduce waste and variability. The procurement process through its own satellite communication and electronic data interchanges tend to link the store to the suppliers hence creating the finest coordinated stores

Decentralization of Wal-Mart stores is a unique operation feature across retail industry based on Hersterly Strategic management and competitive advantage approaches (Hersterly 2012). The retail managers are required to continually understand the level of stock in the stores hence the managerial power to send order of stocks to Wal-Mart headquarters. As such, the manager has the local knowledge of the consumer preference and the local competition across the environment hence issuing correct inventories for particular stores.

References List

Barney, J 2013, ‘Firm Resources and Sustained Competitive Advantage,’ Journal of Management, vol. 17, no. 1, p. 110.

Hersterly, W 2012, ‘Strategic Management and Competitive Advantages: Concepts and Cases,’ Persons Prentice Hall Inc.

Stefanska, M 2014, ‘Competitive Advantage Based on CSR in Supply-Chain Suppliers about Retailers Strategy,’ International Journal of Arts and Sciences, pp. 35-44.

Wei, L 2014, ‘Strategic Analysis for WarlMat,’ Save Money. Live Better, p. 1.