Introduction
Walmart is a global retail firm based in the United States: it operates a franchise of megastores, cheap retail chains, and grocery shops. The company was founded in 1962 and is the world’s largest company by revenue and one of the largest employers in the world (Luo, 2022). Walmart is a leader in the retail industry due to its competitive advantages. Its competitive advantage lies in its low prices, vast selection of merchandise, and convenience. The company has maintained a competitive edge over its rivals by focusing on its core competencies and leveraging its resources.
Walmart has differentiated itself from competitors by focusing on cost leadership, operational excellence, and customer service. In order to maintain its competitive edge, the corporation has used new technology and creative techniques (Nguyen et al., 2021). Its primary source of competitive advantage is its cost leadership strategy. The company has maintained its costs low by relying on its economies of scale, bulk buying, and efficient supply chain management. Leveraging is a common strategy that businesses use to keep their costs low. The desire to compete against rival companies influences business decisions differently (Johnson et al., 2017). This has enabled the company to offer its customers low prices without sacrificing quality.
Walmart’s Competitive Advantage
Walmart has differentiated itself from competitors through its customer service and cost leadership. A competitive advantage originates from the implementation of a competitive strategy that the company implements (Burgelman and Sayles, 1994). Walmart’s management has implemented various initiatives, such as its policy for daily low prices and its Price Match program to provide customers with competitive prices and value. In addition, the company has invested in training and development for its employees to ensure that customers receive high-quality services. Walmart leverages its resources to gain a competitive advantage by investing heavily in technology and data analytics to identify customer needs and preferences. Some of the company’s new technologies include artificial intelligence and robotics to improve its operations further. This has allowed the company to streamline its processes, increase efficiency, and reduce operational costs.
By utilizing its brand, Walmart has sustained its edge over its competitors. The company has developed a strong brand identity by focusing on its values and mission. Walmart has been able to attract new and retain existing customers by emphasizing its commitment to quality, customer service, and low prices (Ansari, Ameer, and Tabbassum, 2019). Moreover, the company uses its brand to build customer loyalty and increase its market share. It has used its brand to develop an extensive customer base and build customer relationships. The company has created a loyalty program that rewards customers for their loyalty and encourages them to continue to shop at Walmart. The company has implemented an online shopping experience that makes it easy for customers to find what they are looking for and place orders. Furthermore, Walmart has used its brand to create a positive customer experience by offering a wide selection of products, fast and free shipping, and competitive prices. Walmart’s branding efforts have enabled the company to create a competitive advantage and remain one of the leading retailers in the world.
Conclusion
Walmart’s competitive advantage is derived from its cost leadership, operational excellence, customer service, resource leveraging, and brand identity. A competitive advantage is essential for Walmart to remain competitive in the retail market. It allows Walmart to gain market share, increase profitability, and generate higher profits than its competitors. When a corporation can supply goods or services at a cheaper cost or give a better quality or efficiency than its rivals are unable to match, it is assumed to have a competitive edge. Walmart’s competitive advantage lies in its low-cost business model and ability to leverage economies of scale. It can acquire large quantities of goods, obtain better suppliers’ pricing, and pass on savings to customers. By concentrating on its core capabilities and maximizing its capabilities, the firm has established a competitive advantage over its competitors. This has enabled the company to offer its customers low prices, excellent service, and innovative solutions.
References List
Ansari, A.A., Ameer, M.W. and Tabbassum, L. (2019) ‘Strategies of green marketing as a tool of competitive advantage’. Pakistan Journal of Humanities and Social Sciences, 7(2), pp. 257-265. Web.
Burgelman, R. A. and Sayles L. (1986) Inside corporate innovation. New York: Free press.
Johnson, G. et al., (2017) Exploring strategy: text and cases. Harlow: Pearson.
Luo, W. (2022) Research on the way Walmart succeeded during the pandemic. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 1210-1213). Atlantis Press.
Nguyen, N.T., Hooi, L.W. and Avvari, M.V. (2021) “Leadership styles and organizational innovation in Vietnam: Does employee creativity matter?” International Journal of Productivity and Performance Management, 72(2), pp. 331–360. Web.