MGT 4199 1. Identify and evaluate the strategies that Wal-Mart has historically pursued to create and sustain a competitive advantage.
Answer: Wal-Mart’s pursuit and ability to sustain a competitive advantage has allowed the company to make use of many strategies. One of the strategies that Wal-Mart has made use of is the Expansion strategy. The company realized that building a new store will allow for increase market share value. The company opened new locations in the community with 5,000 to 25,000 populations. After their success in the rural areas, Wal-Mart moved to contiguous areas and then moved to adjoining areas. The expansion strategy made Wal-Mart the number one retail store in the United States. As Wal-Mart
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However, if the economy is bad there will be fewer jobs and people will shop less. Also, with the high price of gasoline and its effect on the economy, a firm like Wal-Mart will certainly be affected the most. (5) Legal Forces – (Threat): The firm has been faced with numerous litigation that ranging from discrimination to systematic underpayments, and also accusation of promotion. Among these litigations was the 1.6 million lawsuit filed by the female employee from lack of promotion and discrimination. In this case, a bill was passed in Maryland requiring all employers with more than 10,000 employees to spend at lease 8% of its payroll on healthcare for its workers. (6) Lack of foreign Culture (Weakness): Wal-Mart’s initial lack of foreign culture put the management through many challenges. In Argentina, Wal-Mart tried to introduce a U.S based retail mix and store layout to the local cultures, the attempt failed. Furthermore, when Wal-Mart tried to set up in German with lack of knowledge about the German culture, the firm discovered that the stores were either cramped, unattaractive or poor location. The firm also realized that its urgent need to get the Germans involved in the top managerial position of the company. This approach also proved relevant and important in China where there is government restriction of foreign retail operation. (7) H. R – (Strength): Wal-Mart has done a