Wal-Mart Case Study

Sources of competitive advantage

?nbsp; Located stores in isolated rural areas and small towns, usually with populations of 5,000 to 25,000 ?a market that was ignored by the other players.

?nbsp; The pattern of expansion was “pushing from inside out? The position of strength thus built in a region enabled Wal*Mart to take on its rivals in bigger markets.

?nbsp; Extremely competitive in terms of setting prices. Typically, a 2-4% pricing differential between Wal*Mart and its best competitors in most markets. Offered consumers brand name merchandise for less than department and specialty stores.

?nbsp; Simple and cost-effective advertising. Wal*Mart was known for its national brand strategy, and the majority of its sales consisted of nationally advertised branded products. Advertising expense for Wal*Mart was 1.5% of discount store sales compared with 2.1% of direct competitors. A marketing slogan “Always low prices-Always?emphasized the superior pricing positi...