Wal-Mart Stores Inc.: Dominating Global Retailing
The case explores the fundamental features of the business model that Wal-Mart has been adopting, both in the U.S. and abroad. It places particular emphasis on the company's supplier management approaches, supplier strategies in doing business with Wal-Mart, and the company's track record in international operations. It offers insights into the ways in which Wal-Mart's suppliers can design their own strategies to ensure continued viability amidst significant pricing pressure from the retail giant. It closes with important questions about the continued success of the company in the face of allegations of labor violations, increasing competition in foreign markets, and the likelihood of a supplier push-back against Wal-Mart's continued pressure to bring down their prices.
The major objectives of this case are:
1. To illustrate the fundamental concepts of competitive advantage and how it is built and nurtured.
2. To explore issues of sustainability.
3. To look at Wal-Mart's strategies of supplier relationship management and the consequences of its restrictive practices in managing its supplier network.
4. To examine the transferability of homegrown sources of competitive advantage to foreign locations.