Key Source of Wal-Mart#39;s Competitive Advantages关键源沃尔玛和# 39的竞争优势.ppt

Background Historical competitive advantages and its sustainability Whether its business concepts work in HK China Recommendation to Wal*Mart to sustain its growth Wal*Mart First established as a self-service discounting store in 1962 by Sam Walton Formats: Wal*Mart Major competitors: Business strategies Place: pattern of expansion: -pushing from the inside out Product Place Price Promotion Price: Between 1992-1993: - 2.2% below Kmart - 3.7% below Target Product Place Price Promotion Promotion: few promotion: - advertising expense: 1.5% of sales (while 2.1% for direct competitors) Key Source of Wal*Mart’s Competitive Advantages Technology: - Join forces with a well-known Interactive Service Provider(e.g.AOL) to bridge the physical and virtual world. (3) Customers Serving i) By setting up searching engine ii) By providing personal online services iii) Could listen to consumers’ opinions promptly Formats: - Increase the number of supercenters * * Target Kmart At the end of 1993: No.1 of the top 50 Discount Department store - Market value: 57.5 billion - Sales per square foot: $300 (the industry average is $210) Phenomenal success: Everyday-low-prices Commit to customer service Maintaining technological superiority Building loyalty among associates and suppliers Wal*Mart Automative Health beauty aids Stationery Sporting goods Paint hardware Household chemicals consumables Food Home hardlines Product Place Price Promotion Product: Rural areas Small towns Product Place Price Promotion “Always low prices-Always” “Everyday-low-prices” Why Wal*Mart could succeed? High Responsiveness and Flexibility Innovative Strategy Changing Customer Demand Flexible shelf space allocation Private labe