What Are Wal-Mart's Key Corporate and Competitive Strategies in the U.S. and China?

1- What are Wal-mart's key corporate and competitive strategies in the U.S. and China?

Wal-mart's competitive strategy in the U.S. Market has historically been highly successful as it fits to an average American consumer's desires perfectly. Wal-Mart had managed to grow in a business were others have failed by first focusing on small rural areas. The small population of these areas made it difficult to competitors to come after Wal-Mart had established its store there. Wal-mart's competitive advantage relies on three factors: price leadership, customer centrality, efficiency of supply-chain and strict cost control. We will go through each one in depth.

Every Day Low Prices

Wal-Marts positioning is clearly cost-leadership as it promises the lowest prices available. A customer should be able to rely, that he or she gets the best possible price when buying at Wal-Mart. Keeping this promise is essential for the customers to keep coming. The objective was to offer all products at least 20% cheaper compared to competitors. The average consumer saves at least 15% for a typical cart of groceries.

Wal-Mart can offer lower prices than its competitors due to economies of scale. As a large buyer, it can negotiate very good deals for the company

Excel in customer service

The founder of Wal-Mart believed that just by achieving cost-leadership will not make the company success in the U.S market. Therefore the second key component in the company's competitive strategy is by making the visit to the shops for the customer as enjoyable as possible with great customer service and pleasant surroundings. The value given to customers is in the center of all decision making.

Good customer service should be obvious in the retail sector. However, Wal-Mart was able to transport these standards across states and countries in a way that a customer could expect great service anywhere when visiting Wal-Mart.

The company realized that the American consumer wants to visit a shop once or twice a week (with a car) and buy all products necessary on these occasions. This leads to large single purchases.  Good customer service is profitable, when the magnitude of a single purchase is large.

The necessity of good customer service is emphasized throughout the organization with a requirement to exceed customers' expectations that should be followed by every executive, manager and associate. Some customer centric rules include 10 feet rule which requires an associate to greet and look a customer in the eye if in 10 feet distance. Another rule requires that customer requests have to be answered in the same work day they have been left (Sun down rule).