Econometria

1. To what extent is Wal-Mart’s (WM) performance attributable to industry
attractiveness and to what extent to competitive advantage?


Both industry attractiveness and competitiveadvantage have helped WM to achieve the performance obtained today. But which of them has been the most important?

Referring to the key strengths in terms of industry and its contribution to the goodrunning of the company, we can say that the idea that suppliers are one of the most important retail chains  in the market is somewhat that reveals the success they have.
With respect to buyers, the ideais to have little power over the company because they are individual buyers, so we should not consider them a danger
Despite this, we must bear in mind that are very price sensitive so you need toknow how to keep them. Talking now about substitutes, we can say that is a very important and strong key because there are so many substitutes in the market and they are becoming much easier to find.Another important aspect is the competition in the sector, and is growing rapidly for the high product differentiation, making all seek to maximize profits, so being with the problem of geographicaldistribution which greatly limits the competitiveness.

Turning now to the competitive advantage, the first thing we should emphasize is the competitive pricing strategy that is WM, with very lowprices get much higher returns than their competitors. The key is to keep prices low and thus lower profit margins, but at these prices, sales rise much more and in the end, the benefits are muchgreater.
The fact of start in small towns with small shops, and little by little growing and increasing, continuing for large cities and supermarkets, allowed to WM increase the competitive advantage,causing a lower cost and highest grossing.



2. Identify distinctive resources and capabilities in the internal environment of WM.

To answer this question, I will summarize and specify on the...