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What are the sources of Wal-Mart`s competitive advantage in discount retailing?
The main objective of Wal-Mart was to keep prices low always and in order to do that, Wal-Mart had to minimize its cost effectively.
To minimize their cost, Wal-Mart implemented the following:
Each store manager used information system (traiting) to find customer preferences and displayed products in the most appropriate places.
They could price products to meet their various demands in order to maximize sales volume and minimize inventory turnover and cost.
Using Electronic Scanning (UPC) and satellite system, they could improve working efficiency and keep appropriate levels of inventory.
They encouraged their employees to be able to freely express their thoughts and this would help generate ideas on how to more effectively minimize cost.
They also used technology to connect with their suppliers effectively in order to improve logistics management, which also helps to reduce cost.
Through profit sharing, the employees also can take responsibility for their tasks and align themselves with the company strategy of cost minimization.

What is the strategy that allowed Honda to be so successful in the motorcycle industry?
The strategy of Honda was to accomplish economies of scale in order to produce Motorcycle with high productivity. So, it could decrease its total cost quickly and yet maintaining price competitiveness.
To achieve high productivity, Honda implemented the following:
It invested a lot of money in R&D to produce Motorcycle that could meet market needs quickly and concentrated market share and sales volume to achieve high productivity, even though it could cause short-term profit loss.
It found the new market(middle-class consumers) and focused on advertising to it and tried to move into the market by going step by step.
It had its own distribution subsidiary

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