Competitive Advantage of Wal Mart Essay

every company is trying to avoiding failure and the goal is to nonplus a sustaining competitive favor. But when do companies have a sustain satisfactory competitive utility? It depends on three factors the barriers to imitation, the capability of competitors and the dynamism of the industry development.In the 1970s Wal market lost their competitive advantage. Sears had a better positioning like Wal Mart. Therefore Wal Mart distinguished the situation and improved its distribution system. It created new trade channels to save be and rank in new information technology to improve their situation. Wal Mart found a way to win over their strategies and structures to change their competitive conditions. Over meter, Wal Mart got strong partnerships with suppliers. This was a key element to improve their transaction on the market and its non easy to imitate. Those partnerships work now since a long era and other competitors might lack the volume of purchases Wal Mart can offer.With some diversifications like Sams Club, a new way of supercenters or their plan for the international expansion Wal Mart was able to stay from their competitors. Wal-Mart was the first low price company and retailer which expanded around the world. The CEO of Wal Mart cerebrate on small-town markets and ignored the national discounters. So, Wal Mart has huge distribution capabilities and this is very difficult to imitate from competitors.The intimately significant advantage of Wal Mart is their using of the satellite system. They are using this system to compress their costs and get a distinguished communication system with all employees to every time.The overall achieved employee rejoicing has the advantage of highly motivated employees. This is an overall management issue and when the employees are motivated, the customers are feeling good and hygienic served.In future, Wal-Mart was committed to find new ways to have the competitive advantage of the market. They invest in diff erent strategies like trendy fashions, offering organic food and remodeling stores to achieve a high satisfaction during the shopping by customers. So, they were able to use the economic crisis to win new customers. A lot of state search after low price shopping possibilities. So investors cheered at Wal-Mart and the company outperformed both relate target and the S&P 500 index.Wal Mart holds its quality due to the constant low priced policy. This EDLP is not easy to replicate unless you can offer consistently low prices.On account of the points Wal Mart is able to secure a sustaining competitive advantage at the moment. They are reacting directly and design their company with the time and respond on their employees and customers. Their competitors are able to imitate their policies but this cant happen within the next year because Wal Marts advantages are way to complex. As long as Wal Mart is always developing its competencies and keeping on track with the environmental change s, they do have a sustainable competitive advantage in the US.