Wal-Mart's Cost Leadership Strategy

 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR096 Electronic Format: Rs. 500;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

Cost Leadership
Case Length : 17 Pages
Period : 1962 - 2004
Organization : Wal - Mart
Pub Date : 2004
Teaching Note : Not Available
Countries : USA
Industry : Retailing

Abstract:

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

Contents:

  Page No.
Introduction 1
Wal-Mart's Aggressive Pricing 2
Achieving Cost Leadership 2
Wal-Mart in the 1990s 5
The Growth Continues 7
Plans And Challenges 8
Exhibits 11

Keywords:

Cost leadership strategy, decades, Wal-Mart, in-depth, key elements, cost leadership strategy, Wal-Mart, above-average, returns, defense, competition, plans, challenges, Wal-Mart, 2004

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