International Supply Chain: Wal-Mart Case Study

Before analyzing Wal-Mart's corporate strategy, it is important to decide what business it is in.  For example, if Wal-Mart is in the business of selling consumer goods such as TV's, sheets, clothes, etc then it is pursuing a concentric strategy by entering the food business.  However, this changes depending on how you analyze what business Wal-Mart is in.  Wal-Mart is in the business of selling everything customers need in their everyday lives.  This includes the consumer goods listed above as well as food-service items.  Even still, Wal-Mart pursues multiple strategies.  Concerning concentration, Wal-Mart continually finds more consumer goods to sell at its stores which can take money from competitors.  Additionally, when Wal-Mart entered into the food market, it quickly consolidated and held to good, saleable products.  Wal-Mart never forays too far into a market and only sells what will make it a profit.
            Lastly, an argument can be made that Wal-Mart is also pursuing a vertical integration strategy.  Wal-Mart has developed its own name brand to sell products called Sam's Choice.  This puts Wal-Mart into the business of making things like soda, cereal, and dog food.  While they still don't grow their own crops or raise their own livestock, it is still a form of vertical integration.  Also, Wal-Mart works heavily with its suppliers.  This symbiotic relationship can be see as vertical integration due to the level at which Wal-Mart analyzes its suppliers and improves their manufacturing processes, etc.
            Wal-Mart definitely has the business strategy of Low Cost Leadership ...
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