The external environment changes constantly and every organization has to adapt or change its strategies in order to adapt to the environment or be wiped out of the market.
Wal-Mart Stores Inc. is the largest retailer in the world, having been in business for over twenty years. Wal-Mart’s strategic plan for competitive advantage is selling of goods that have already been branded. For this reason, the company has over four thousand retail facilities in the world. The competitive strategy for Wal-Mart is to sell brand name and high quality products at the lowest price possible. The company ensures that the products are sold at a lower price by reducing costs of warehousing and use of advanced technology to monitor operations. The company has achieved a competitive advantage by lowering its prices while offering high quality products. The company has accepted to operate with small margins, which combined with high quality products have ensured that the organization maintains and attracts more customers (Hayden et al, 2002).
External business environment competitive advantage is arrived at by the firm’s ability to offer value added products to the customers. Wal-Mart has taken the strategy to offer high quality products to the customers at lower prices. The company adds value to the expenditure of the customers. For an organization to gain and maintain continuous competitive advantage strategy, the organization has to exploit the identifiable opportunities in the external environment. Wal-Mart has examined the external environment and realized that investing in small locations such as towns can bring a lot of profits for the company. The company has retail stores in both small and large towns all over the world. Wal-Mart started from small towns and extended to the large towns.
Due to the size of Wal-Mart Stores Inc., the external business market it operates