1. What are the challenges of competing in the discount retail industry? Apply Porter’s 5 Forces analysis.
2. What are Wal-Mart’s key resources and capabilities? Apply value chain analysis to answer the question. Do Wal-Mart’s resources and capabilities provide it with a competitive advantage?
3. Assess whether Wal-Mart’s resources were “competitively superior” to those of its competitors at the time of the case. In what areas does Wal-Mart appear to be superior, and why? In what areas does Wal-Mart appear to be inferior, and why? To help answer this question, compare the expense and cost items for Wal-Mart and its competitors in discount retailing industry.
4. Could another competitor like K-Mart duplicate Wal-Mart’s success? If so, how? If not, why not? Can Wal-Mart’s competitive advantage be sustained? Why or why not? What are the biggest potential threats to Wal-Mart’s competitive advantage?
5. What issues does Wal-Mart face? What are your recommendation to Wal-Mart?