Case: WAL*MART STORES, INC.
Discussion Questions:
1. Identify Wal*Mart’s strategy, and explain how and why has it enabled Wal-Mart to be so successful in an aggressively rivalrous industry.
2. What, historically, have been Wal*Mart's key sources of competitive advantage in discount retailing? How has Wal*Mart operated differently from its rivals?
3. Using the information in the Tables and text of the case, quantitatively estimate the extent of Wal*Mart's competitive advantage in discount retailing relative to its competitors. Estimate the magnitude of Wal*Mart’s cost advantages in terms of increased margin (operating profit) or lower operating costs and expenses. Be as specific as possible.
4. How sustainable is Wal*Mart's competitive advantage in discount retailing in 2003? Where is Wal*Mart's advantage most sustainable? Why can't competitors match what Wal*Mart does?
5. What are the biggest threats to Wal*Mart's continued success? How should Wal*Mart respond to these threats?
Short Assignment[SA]
(a) What has been Wal*Mart’s strategy?
(b) What, historically, have been Wal*Mart's key sources of competitive advantage in discount retailing? How has Wal*Mart operated differently from its rivals? Using the information in the Tables and text of the case, quantitatively estimate the extent of Wal*Mart's competitive advantage in discount retailing relative to its competitors. Be as specific as possible.
(c) Explain why Wal*Mart’s rivals have not been able to imitate them, and hence negate their performance advantage.