How Walmart Achieved This Low Cost Competitive Advantage
The report also discusses how Wal-Mart is taking lead on environmental sustainability by investing in solar power plants, offering environment friendly products in its various stores and encouraging recycling of different products.
They employ locals in the area to manage the stores, so that local barriers can be reduced. Wal-Mart maintains their strategy of low-cost leadership, which appeals to a larger market than competitors.
There are factors that have been unique to Walmart, which have given the company a competitive advantage over its rivals. The company has been able to effectively and efficiently utilize its competitive attributes to achieve a sustainable competitive advantage. First, Walmart has vast resources, which have helped it attain a step further compared to its competitors (Kneer, 2009). Its resources can be categorized as financial resources, human resources, knowledge resources, as well as physical resources. As mentioned earlier, the company is ranked among the largest in the world in terms of financial strength. This has been the primary resource that has helped Walmart remain top of the competition and sustain its competitiveness over the years.
Its Policy everyday low prices enabled them to have two main competitors like Target and Kmart. Wal-Mart also has a good Human Resource Management and employees of Wal-Mart are very committed. Because of its good impact on the market, everybody feels proud of being a Wal-Mart employee. Wal-Mart has maintained a competitive advantage through its ceaseless innovation. It was able to maintain its economic profit even though it has competition from other firms.
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