business-level strategy of Wal-Mart
1. What is the business-level strategy of Wal-Mart? Differentiation or cost leadership? According to the case, what does Wal-Mart do in order to implement its
business-level strategy? (1 page)
– Your major task here is to summarize the article. When I evaluate your final report, I want to see that you carefully read this case. And I look at the clarity of
your summary.
2. Discuss how significantly each activity contributes to Wal-Mart?s competitive advantage. Use the six criteria of good resources to evaluate each activity or
resources associated with the activity (Valuable, rare, inimitable, nonsubstitutable, slowly depreciating, exclusively appropriated by Wal-Mart). (2 pages)
– I evaluate your arguments based on the six criteria.
– If you search beyond this Wal-Mart case and obtain any additional information regarding Wal-Mart or retail industry, you will earn extra credits. If you do so,
indicate the source of information. (Which news article, textbook, website or previous courses?)
3. Differentiation, while increasing value, tends to increase costs. Cost leadership, while reducing costs, tends to decrease value. In other words, a particular
activity oriented toward one type of business-level strategy always has an undesirable side effect. Look at Wal-Mart?s activities again and discuss any unintended side
effect that may be generated from those activities. (2 pages)
– In this question, I look at your analytical ability. This question may not be easy. You need to think things through. You may need to use some creativity or search
for additional information from elsewhere.
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