Competitive Advantages of Walmart - Assignment Example

In this age, every organization is trying to attain sustainable competitive advantage by reducing its business risks and challenges to a significant extent. Only then, it might enhance its brand image and competitive position in the market among others. Similarly, the organization of Walmart also decided to retain its sustainable advantage and value in the market by implementing the strategy of discount retailing. By doing so, the organization of Walmart became successful in enhancing its profit margin and total revenue to a considerable extent among other rival players.

This is mainly due to the below-stated points: Price flexibility- in remote areas, the stores of Wal-Mart desire to offer discounted prices for various products. As a result of this, a wide range of customers of varied living standards and lifestyles might access its products and services to a certain extent. Due to this, the image and supremacy of Wal-Mart enhanced thereby amplifying its profitability and reliability. Wide range of products- to attain economies of scale, the organization of Walmart desired to offer trendy products to its customers.

As a result of which, the level of trust and loyalty of the customers increased that improving its supremacy and market value to a certain extent. A good relationship with the suppliers- due to good relations with the suppliers, the organization of Wal-Mart became successful in attaining its products very quickly in any part of the world. Due to this, the level of trust and consistency of the customers over this brand enhanced significantly that improving its level of sustainability. Everyday low price (EDLP) - everyday low price is one of the most important strategies that helped Walmart to attain its reputation and popularity in the market among other rival players.

This type of pricing strategy enhanced the demand of the customers which amplified its total profitability to a significant extent (Mathews, 467-488). Thus, due to the above-mentioned points, the strategy of discount retailing proved extremely effective for the organization of Wal-Mart among others. Answer 2 To enhance its market share and reputation in the market, Walmart is trying to implement the strategy of opening ‘neighborhood stores’ as new formats. This is done to evaluate the transferability of the competitive advantage of the organization of Wal-Mart among other rival players in this market.

Culture of the workforce- the culture of the employees of the organization of Wal-Mart is extremely noteworthy to be transferred to the neighborhood stores as compared to other discounted stores.