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  • Essay / Wal-Mart's Strategy for Long-Term Competitive Advantage

    Wal-Mart's Strategy for Long-Term Competitive Advantage from all over the world have in the global market. There are elements in business that make logistics management successful at Walmart; its success can be attributed to its business strategy and supply chain management strategy. Walmart at a Glance The history of Walmart dates back to a man named Sam Walton who opened his first Walmart store in Rogers, Arkansas in 1962 (Bergdahl, 2004). According to Bergdahl (2004), from 1962 to the present, Walmart employs 2.2 million associates and promotes 160,000 people to jobs with greater responsibility each year. Walmart is a global company with more than 11,000 stores in 27 countries. In late January 2013, Walmart reported a 5% increase in net sales, to $466.1 billion, and delivered a $13 billion return to its shareholders. Walmart prides itself on its environmental sustainability, humanitarian efforts to combat hunger in America, and women's economic empowerment. Wal-Mart uses advanced strategies such as the site-to-store strategy, which allows the company to differentiate itself from online retailers. She uses this strategy to ship goods to local Wal-Mart stores for free. According to Ghiani, Musmanno, and Laporte (2013), nearly 30% of customers who shop at Wal-Mart stores also purchase products from its online stores, saving more money in a month than shopping at competitors. This figure is expected to increase by 2% over the next year as customers shop online more frequently than in brick-and-mortar locations (Ghiani et al., 2013). Wal-Mart uses the site-to-store strategy to ensure maximum utilization of its 1...... middle of paper ......obe.Works CitedBergdahl, M. (2004). What I Learned from Sam Walton: How to Compete and Thrive in a Wal-Mart World. Hoboken, NJ: John Wiley & Sons.Business Dictionary. (2014). Low-cost strategies. Retrieved from http://www.businessdictionary.com/definition/low-cost-strategy.html Ghiani, G., Musmanno, R. and Laporte, G. (2013). Introduction to logistics systems management. Hoboken, NJ: Wiley.Hitt, MA, Ireland, RD and Hoskisson, RE (1997). Strategic management: Competitiveness and globalization: case. Minneapolis/St. Paul: West Pub. Co. Kneeer, C. (2009). The Wal-Mart success story. Munich: GRIN Verlag. Radhakrishnan, P. (2001). Proceedings of the 1st International Conference on Logistics and Supply Chain Management. Allied Publishers. Wisner, J.D., Keah-Choon, T., and Leong, G. (2012). Principles of Supply Chain Management (3rd ed.). Mason, OH: