Wallmart

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WALL MART STORES CASE ASSIGNMENT |
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CLARA FECED GRACIA |
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To what extent is Wal-Mart’s (WM) performance attributable to industry attractiveness and to whatextent to competitive advantage?

In my opinion the two of them are very important in WM performance. It´s so difficult to obtained a constancy growth and profitability in nowadays with theglobalization that it have created some negative aspects in terms of industry attractiveness as, for example, there a very strong substitute competition, there are not barriers to the entry of new competitorsand also the strong industry rivalry because of the little product differentiation.

But also the discount retailing industry is attractive in many aspects: the retailer chains hold the more powerfulbargaining position, the buyers are price sensitive but doesn´t have power because they are individual consumers…

Therefore WM has managed to penetrate the market and gain competitive advantage bylocating their stores in small and medium towns at first, and then expanded to metropolitan areas.

The WM competitive advantage is based on lower prices and lower gross margin that permits them tobe a price competitor, and also be more efficient than their competitors in terms of cost as a proportion of sales and in terms of capital turnover.

Identify distinctive resources and capabilitiesin the internal environment of WM.

WM is the world´s biggest retailer and the world´s largest corporation. This is due to his competitive advantage and its superior efficiency, and to achieve theseends it´s necessary to have resources and capabilities, and wall mart of course has them.
The first one is the buying power due to the centralizing its buying, making pressure to vendors´representatives, limiting the power of supplier (max. of 2.5% of total purchases) and collaborating with them to get discounts and also buying on internet that can give opportunities worldwide …
The second...