Subject: Wal*mart Stores, Inc.
YooJin Kim 2016730218 of P-MBA, 2018 Class
•What are the sources of Walmart’s competitive advantage in discount retailing?
There were two key aspects to Walton’s plan for growing Walmart.
The first was locating stores in isolated rural areas and small towns, usually with
populations of 5,000 to 25,000. So there are no competitors around Walmart. His idea was
that he doesn’t want to compete with other discount stores and if he offered prices as good
or better than stores in cities that were four hours away by car, people would shop at home.
The second was the pattern of expansion. “We are always pushing from the inside out. We
never jump and then backfill.”
And there were the other competitiveness in key function of company.
Sam’s legacy
Walmart aimed to excel by empowering associates, maintaining technological superiority,
and building loyalty among associates, customers, and suppliers.
Merchandising
“everyday-low-prices” offering customers merchandise for less than department stores and
specialty store prices.
Diversification
Consistently, Walmart has developed a various business models including Sam’s Club,
Supercenters and discount stores to satisfy customers.
•How sustainable do you think their positioning in discount retailing will be in the