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My Doc-1

In: Business and Management

Submitted By Adib123
Words 4277
Pages 18
1. Business-level Strategy

Walmart uses a combination strategy of cost leadership and differentiation. They provide a wider variety of products and services with the same or better quality at a price that is cheaper than their competitors can provide. Walmart concentrates on finding ways to lower their costs by constantly rethinking how to complete their primary and support activities to reduce costs still further while maintaining competitive levels of differentiation. Their successful supply chain management is an important way helping them to implement the cost leadership strategy. They has effective inbound logistics by using just-in-time inventory. And they have cut costs from outbound logistics by creating better fuel efficiency in their trucks, getting more pallets on a load, and decreasing empty miles driven by their trucks (Dess, 2012). Walmart also reduces costs by buying in large blocks. Technology plays a key role in Walmart’s supply chain too, it allows Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics (Walmart's Keys to Successful Supply Chain Management, 2013). In conclusion, Walmart's successful overall cost leadership/differentiation strategy leads to high entry barriers for competitors.

• Corporate-level Strategy

The major reason behind the success of Walmart lies in the fact that the company believes and concentrates on the strategy of single business, which means more than 95% of its revenue comes 6 |!Page from their grocery business. Over 30 years, the strategy of single business has been contributing greatly to the success of Walmart, they have never believed in the concept of diversification for the sustenance of its growth and also its advantages at the competitive level (Market entry strategies...

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