Question

Research Walmart and give an example of how the company is following a Cost Leadership strategy Describe what Walmart is doing to implement this form of competitive advantage. Be specific in explain which benefits the company has eliminated to reduce costs.

Answer 1

Answer :Cost leadership strategy has main purpose to lower the cost of the product and earned competitive advantage.

Good example of cost leadership strategy company are:

• Walmart
• Australia wholesaler
• France wholesaler

Ways to achieve cost leadership strategy :

• Aiming to become lower cost leader.
• Firms are compete on the basis of the cost of the product.
• Target a broader market
• Especially for a customer or structure where the consumer are price sensitive.
• Economics of scales has been achieved.
• Experience about the product
• Product process in systematic and logical design

Walmart has been using supply chain management as well as managing different techniques to focused on different development technique and reducing inventory cost as well as bolding cost. It means that reducing cost related to the supply of inventory.

Walmart has been using different technique in employing such factors which resulted in proper supply chain management as well as reducing cost in order to achieve competitive advantage where lower cost has been employed as well as in beginning they have foregone the profit in order to achieve competitive advantage after sometime they become stable and earned higher market share which resulted in higher profit level.