Wal-Mart: Low Cost Leadership Strategy and Competitive Advantage

Wal-Mart

Wal-Mart 1
Answer 1
Wal-Mart has several driving forces that help the organisation to attain the success in
the world of low cost leadership. These drivers allowed the company to become the market
leader in the low cost retailer markets. As per the case study, it has been seem that the
company follows the massive buying behaviour due to which the large numbers of consumers
are attracted towards the services of the company. The company offers the services at the low
cost which enables their customer to afford the goods. The other drivers of this strategy helps
to attain the competitive advantage is its ability to increase to spread the business in the
different sectors as its distribution channel is fast and responsive. The factor that helps to gain
the competitive advantage is its operation activities. The operating activities of the company
are highly effective and excellent with the high expectation (Walmart, 2018). The high
expectation of the company helps to enhance the high productivity and efficient processes. At
the end, it can be said that the low cost leadership strategy helps the organisation to earn the
revenue due to which it has the capability and the ability to expand the business at the
international level. It makes the company stronger in financial terms and it also enhances the
brand image in the market. The company attain the success in the market due to high demand
of consumer towards its services. It is a fact that the group of people are always attracted
towards the high quality of services with the low prices that is why; it can be said with the
low cost leadership strategy helps to grab the all types of consumers such as poor, middle and
rich which helps to market share (Ansoff, Kipley, Lewis, Helm-Stevens, &Ansoff, 2018).
Answer 2
Cost leadership strategy focuses on the low cost of goods and services due to which
there much competitive advantage gain by the company (Madsen, & Walker, 2015).vIt is
observed that there are many problems arise due to the low cost leadership strategy by the