This essay will focus on how Walmart’s strategy fits and achieves it’s value proposition, and how the company has created a differentiated, sustainable competitive position through leveraging its key resources and capabilities.
Porter argues that the basis for competitive advantage is performing activities differently than competitors. “A company can outperform rivals only if it can establish a difference it can persevere. It must deliver greater value to customers, or create comparable value at a lower cost, or do both” Porter, (1996)
He continues by arguing that the essence of strategy lies in a company’s ability to create a unique and valuable position involving a different set of activities.
Walmarts value proposition can be summed up as “every day low prices for a broad range of goods that are always in stock in convenient locations.” The question, however, is how does Walmart formulate strategy consistent with its low cost leadership strategy?
The answer lies in Walmarts key strategic choices and it’s abilities to use its resources and capabilities better than competitors.
First, Walmart has achieved HETEROGENEITY by its different type of geographic market. It’s choice of location gave it a clear competitive advantage in underserved markets.

Competitors wishing to enter those markets will have to expend large amounts of resources to hope and take away market share in a relatively saturated market.
The early movers advantage in these markets should continue to deter against entry. Walmart has established itself as a low price leader in the eyes of consumers and its strong “brand” presence also provides continued deterrence to entry.

Second, Walmart had achieved INIMITABILITY as a result of strategic choices and use of its capabilities. There are now many impediments to imitation. Walmarts early emphasis on automated technology allowed it to