How Walmart Leverages Its Advantages?

Wal-Mart has a proven track record of continuous involution and incremental improvement. It achieved much of its success through ¡° bring ining on¡± its existing strengths, i.e. leveraging its advantages through constant evolution or else than revolution. Technology, size and distribution each offer great advantages that Wal-Mart washstand leverage in both product and market expansion. fruit EXPANSION : The overwhelming size of Wal-Mart offers 2 major advantages in its expansion into new product lines. First, the economy of scale overcomes the impediment of keeping initial cost of goods low that most companies case when taking up new product lines. Wal-Mart may ¡°build on¡± its existing variety of merchandise by pee-pee through the same manufacturers. The number approach is that Wal-Mart can leverage its dominant market status by exploring the potentials of its current puss of consumers without the costly marketing campaign to allure new customers. If consumers in the neighborhood are already buying 70% of their day-by-day necessities at Wal-Mart, they may as well readily purchase the rest 30% during the same trip.

The advanced data dig and information system willing also help Wal-Mart fall apart pinpoint its target sub-markets, identify shifts in consumer preference introductory and evaluate marketing potentials of new products more accurately. GEOGRAPHIC EXPANSION(INTERNATIONAL) : size of it matters again in Wal-Mart¡¯s geographic expansion in a few aspects. Wal-Mart may leverage its purchasing part by consolidating its global procurement activities. This puts Wal-Mart in a very(prenominal) favorable position when competing with local retailers in price. A second economic benefit is the ¡°hedging¡± ability that Wal-Mart derives from its global presence. Wal-Mart will be more flexible than its local competitors in weathering unpredictable economic downturns. By creating a ¡°portfolio¡± of retail businesses in diverse parts of the world, Wal-Mart is able to hedge the currency risk, the economic... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .