Wal-Mart 's primary competitive advantage lies in its Every Day Low Pricing (ELDP ) strategy that allows consumers to access products of well known brands at significantly lower prices . This is achieved through very efficient cost leadership . Apart from this , its culture operations , geographic location , distribution system and organization strategy are all its competitive advantages and although some of these directly have more significant contributions each one has very crucial roles in that the success of each depends upon the able functioning and value generation through the others These advantages are definitely
These advantages are definitely
sustainable in nature as each one is an outcome of effective and efficient management and not at all upon factors influenced by seasonalities . The advantage primarily is nurtured through the provision of everyday goods at significantly lower prices and as long as there are people who are sensitive to prices Wal-Mart 's advantage will remain
Transferability of the advantages into new formats or international movements crucially depends upon the adaptability that is exhibited by Wal-Mart . The notion of significantly lower prices is universally appealing but in spite of that appeal cultural differences as well as bad reputations may prove to be strong barriers . New formats may fail to sustain the advantages if they are unable to adapt into culturally and ethically sensitive images
Target outlets are actually more lucrative to style sensitive people with lesser price sensitivity . Wal-Mart may think of launching new more stylish outlets that charge higher by Wal-Mart standard prices which are still competitive and thereby finance the added style and improved designs...