Q: Analyze Competitive Strategies: What is their key competitive strategy? Are they effective and why? A: Walmart has been able to maintain its market leadership position primarily due to its efficient integration of suppliers, manufacturing, warehousing and distribution to stores. Its “supply chain strategy” has four key components: supplier partnerships, cross docking and distribution management, technology and integration. This management strategy has provided the company with numerous sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved variety and selection at the point of sale, and highly competitive pricing to the consumer. Walmart's low-cost leadership strategy and differentiation strategy support its supply chain strategy to maintain competitiveness. According to a case study from the University of San Francisco, it was revealed that “[Walmart's] competitive strategies are very effective because they provide consumers...
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