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hw8 - 1. When Walmart decided to incorporate grocery stores...

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hw8 - 1. When Walmart decided to incorporate grocery stores...

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Unformatted text preview: 1. When Walmart decided to incorporate grocery stores into some locations and created "supercenters," was this a business-level strategy of differentiation or a corporate-level strategy of diversification? Why? Explain your answer. Walmarts move was a corporate-level strategy of diversification. Walmarts senior management were looking for areas to compete and combining grocery and retail seemed like the next area. By providing the grocery unit to be a part of Walmart, sales would increase because a new wave of customers would pile in. In addition, those new customers would tend to look around because of the vast product supply. This line of diversification would fall under horizontal integration because Walmart is increasing their products and services offered to customers. Business-level strategy is more of how Walmart competes. Walmart is already competing to be the number one retailer for customers. Groceries are another retail item that customers can now add to their list. In addition, the question appears in customers....
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