Chapter 6 - Competitive and Cooperative Moves

Walmart's Competitive Advantage:

Growth & Expansion - Walmart's growth in the 1970s, drove Kmart and many other retailers into bankruptcy. While the threat of Walmart's growth was apparent to some observers, Kmart executives failed to respond. Competition with Walmart later drove Kmart to bankruptcy. Growth was a huge competitive advantage in the seventies and still is today. Today, Walmart operates over 11,000 retail units under 65 banners in 28 countries. Walmart employs over 2.2 million associates around the world - 1.3 million in the United States alone.

http://corporate.walmart.com/our-story/our-business/locations/

Low-Cost Leadership - Walmart is known for their low prices. When the economy is slow, consumers are cautious about spending, and shop at Walmart because it has so many low-cost items. Also, if you find a product at a cheaper price at one of Walmart's competitors, Walmart will price match that item so that no one will beat their prices. Walmart is so confident in their prices, they have created an application (app) for smartphones. The app allows customers to scan their receipts and the app will search local competitors and if it finds a competitor selling something you bought at a cheaper price, Walmart will give the difference back.

https://savingscatcher.walmart.com/

Differentiation Strategy - Walmart uses differentiation strategy to succeed by creating a product or service unique to customers. The products are marketed in a way that their customers feel this product is exclusively offered at Walmart. Walmart accomplishes this by offering unique warranties and brand image.

Joint Ventures:
In 1991, through a joint venture Walmart went global, opening a Sam's Club in Mexico. A joint venture is a cooperative arrangement that involves two or more organizations, each contributing to the creation of a new entity. Since then, Walmart has had several more joint ventures around the world.