To what extent can Wal-Mart’s competitive advantages be transferred into international spheres?
Executive Summary:
The competitive advantages that Walmart has developed are:
• Wal-Mart utilizes supercenters to meet the demand for one-stop, around the clock family
shopping to provide low-cost goods and services.
• Using strategic IT systems such as electronic data interchange (EDI), Retail Link, radio frequency
identification (RFID) as well as beginning early by launching an e-commerce operation Wal-Mart
has been pushing to be at the forefront of the benefits technology has to improve and better
their operations.
• The locations and store format has been a staple to the Wal-Mart business plan and success.
This allows the organization to attract a large range of consumers and to move product fast and
replenish just as fast.
• Development of partnerships within a region before expansions begin. The relationship Wal-
Mart has with its associated parties is based around respect, consistent communication and high
expectations or incentives.
• Financial capital. Being as large as Wal-Mart is, this allows the retailer to purchase shares or
entire organizations in various regions and take over and implement their operations. This
allows them to instantly gain a share of the market.
Continuing to focus on what Wal-Mart does best and better than its competition it can continue to grow
its international presence. With both successes and failures abroad, there are still changes to be made
to the methodology but utilizing its operation capabilities and partnerships with local organization will
allow Wal-Mart the ability to continue to grow outside the United States.
Wal-Mart began 2005 as the largest company worldwide. With 5,000 stores in 10 countries, 1.5
million employees it had sales of nearly $260 billion. Since its founding in 1945 Wal-Mart has lead price-
conscious shoppers with low process and convenient hours to their 100 million customers each week.
But with vigorous competition from Target, Costco, and Home Depot the market was constantly
becoming more and more difficult to grow within. Wal-Mart management turned to the international
market in the early 1990s to continue its growth and increase its market share. With many years of
experience operations as a retail giant it’s found itself in a position to use its skillset internationality, but
to what extent can Wal-Mart’s competitive advantages be transferred into international spheres?
Strategic Information Technology
One of Wal-Mart’s main advantages is its advanced strategic use of IT systems. Starting in the
80s, Wal-Mart implemented Electronic Data Interchange (EDI). This technology enables the organization
to share information inside the store, from store to store and with the supply chain. Expanding in the
