Wal-Mart's Cost Leadership Strategy

Wal-Mart's Cost Leadership Strategy
Case Code: BSTR096
Case Length: 17 Pages
Period: 1962 - 2004
Pub Date: 2004
Teaching Note: Not Available
Price: Rs.500
Organization: Wal-Mart
Industry: Retailing
Countries : USA
Themes: Cost Leadership
Wal-Mart's Cost Leadership Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

By successfully adopting a cost leadership strategy over the decades, Wal-Mart has emerged as the largest company (in terms of revenues) in the world. The case examines in-depth the key elements of the cost leadership strategy followed by Wal-Mart. It discusses how the cost leadership strategy generated above-average returns for the company and acted as a defense against competition in the industry. Finally, the case discusses the plans and challenges faced by Wal-Mart in early 2004.

Issues

The case is structured to achieve the following teaching objectives:

  • Understand the important components of Porter's cost leadership strategy and examine how it has been applied by a company
  • Understand how a company can emerge as an industry leader by effectively implementing a generic strategy

Contents

Keywords

Cost leadership strategy, decades, Wal-Mart, in-depth, key elements, cost leadership strategy, Wal-Mart, above-average, returns, defense, competition, plans, challenges, Wal-Mart 2004

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