Wal-Marts Sources of Cost Advantage - Essay Example

Walmart employs part of its staff on a part-time basis to reduce operational costs.
Wal-Mart charges the lowest prices as compared to other US retailers. In China, however, local stores charge low prices thus making them among the many lowest-priced stores.
2. Do those sources of cost advantage enable Wal-Mart to achieve a sustainable competitive advantage in the U.S.?

The sustainable competitive advantage of Walmart in the USA has been partly due to cost advantages and other factors such as economies of scale. Cost leadership influences the prices of goods thus attracting more customers thereby attaining a sustainable competitive advantage.
3. Do those sources of cost advantage enable Wal-Mart to achieve a sustainable competitive advantage in China?

4. Recommendations to Wal-Mart executives regarding their operations in China
China is a booming economy with a high potential courtesy of its high population. Walmart can utilize the advantages by easing its struggle for cost leadership and adopting a more diverse mechanism for boosting its market. This can be done by cultivating goodwill from the community in which it operates by fair remuneration of workers and better working conditions in stores and also by its suppliers. This would boost its image thus increasing sales.

5. Aspects of organizational structure and control Wal-Mart relies upon to implement its cost leadership strategy
Wal-Mart uses several strategies to maintain low prices. First, Walmart contracts suppliers from China who provides relatively cheap products. Second, the retail giant employs some staff on part tie basis to reduce the costs of operations. Third, most stores in the US are located in installer towns to boost their presence Read More