Strategic Leadership - Case Study Example | Topics and Well Written Essays - 1000 words

Strategic Leadership - - Case Study ExampleIt will not be correct to say that Wal-Mart chose a particularly attractive industry because firstly it is evident that throughout Wal-Marts lifespan, the retail industry has been having intense internal rivalry among several major players. Secondly, in on the whole areas of retail that Wal-Mart ventured into it began as an underdog for example to Price Club in Warehouse Clubs to Meijer and Fred Meyer in Supercentres and to Kings, Korvettes et al in discount chains. The fact is that Wal-Mart developed unique competitive advantages to propel itself to industry leadership. Some of the discern drivers to its competitive advantage are as follows. Putting good-sized stores into little one-horse towns which everybody else was ignoring (Bradley & Ghemawat 3), heavy investment in Information Technology (IT), the pushing-from-the-inside-out pattern of expansion and its human resource management characterized by empowering its employees at all leve ls. How have Wal-Marts system and source of competitive advantage changed over time? How do Wal-Marts costs correspond to those of the industry? Please be specific. Wal-Marts strategy at inception was to set up stores in those small towns that were being ignored by the other big retailers. To encourage the residents of these towns to shop locally instead of travelling to the big towns Wal-Mart provided goods at attractive prices. This strategy ensured that by mid-80s one-third of Wal-Mart stores were located in areas that were not served by its competitors (Bradley & Ghemawat 3). The organization then moved to a strategy that involved investing heavily in information systems (IS) and empowering its store managers with freedom to set prices to meet local market conditions (Bradley & Ghemawat 4). The IS increased the efficiency and posture of its supply chain management system which enabled the company to reduce operational costs, increase efficiency and watch over their low pric e competitive advantage. As the Wal-Mart grew in size and market share it began using its great buying power to influence the behavior of its suppliers. For example it set up vendor-managed inventory systems with key suppliers to make full stocks at its stores and warehouses. When other competitors began catching up with the use of information systems, Wal-Mart implemented a diversification strategy which involved investing in the development of supercenters and international expansion. Wal-Marts prices were typically 2 4% dishonor than their competitors in most markets. How sustainable is Wal-Marts source of competitive advantage at the time of the case? position the main threats to Wal-Marts competitive position. Put yourself in the role of CEO of one of Wal-Marts rivals How would you attack Wal-Mart? Wal-Marts has been exploiting the low pricing strategy for a long time such that it has an effective organization bearing that ensures that it operates like a well-oiled machin e. As lastname (118) states, Wal-Mart has coherent and logical strategies in place to maximize on its