1 Wal_Mart_Discussion_Questions

1 Wal_Mart_Discussion_Questions - Wal*Mart Discussion...

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Wal*Mart Discussion Questions: 1. Explain how the discount retailing industry in which Wal*Mart competes, is in is or is not potentially profitable? The retailing industry that Wal-Mart is in is potentially profitable because, the sales are large enough to offset for the lower margins. 2. What is Wal*Mart’s strategy? How and why has it enabled Wal-Mart to be s successful in this industry? Wal-Mart’s strategy was to expand from the inside out. They opened the first stores in the small, rural towns and gradually spread out to larger cities with more competition. This has enabled Wal-Mart to secure the smaller markets that no-one was interested in at the time and create a name for itself before hitting the larger markets. So when the new stores opened in the larger cities, people already knew what Wal-Mart was about, so there was no need for excessive advertising. 3. What, historically, has been Wal*Mart's key source of competitive advantage in discount retailing? How has Wal*Mart operated differently from its rivals? Instead of focusing on the cities, Wal-Mart started with stores in small rural towns. Since
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1 Wal_Mart_Discussion_Questions - Wal*Mart Discussion...

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