Wal-Mart’s Cost Leadership Strategy

Wal-Mart’s Cost Leadership Strategy

Understand the important components of Porter’s cost leadership strategy

By successfully adopting a cost leadership strategy over the decades, Wal-Mart has emerged as the largest company (in terms of revenues) in the world. The case examines in-depth the key elements of the cost leadership strategy followed by Wal-Mart. It discusses how the cost leadership strategy generated above-average returns for the company and acted as a defense against competition in the industry. Finally, the case discusses the plans and challenges faced by Wal-Mart in early 2004.         

Issues:

» Understand the important components of Porter’s cost leadership strategy and examine how it has been applied by a company

» Understand how a company can emerge as an industry leader by effectively implementing a generic strategy

 

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