Question

What is the Competitive Advantage of Walmart. What Strategies Walmart Uses to Create Value and Gain Competitive Advantage. What Measurement Guidelines Walmart Uses to Verify its Strategic Effectiveness. what Effectiveness of the Measurement Guidelines Walmart Uses.

Answer 1

Competitive advantage arises from the core competencies.

The Competitive advantage of Walmart is to provide the best possible prices on everyday use goods. This competitive advantage arises from the core competencies in its operations management. Walmart is able to cut down the operational expenses to a higher extent than its competitors.

Strategies employed by Walmart

1) For Products: Cost differentiation and higher value for money

2) For operations management: Excellent Operations management thereby cutting the expenses to best possible levels. Inventory management of Walmart is better than its competitors. Walmart's turn over of the inventory is higher compared to others.

3) For employees: Takes good care of its employees and ranks in America's best 100 places to work.

Walmart also places a lot of emphasis on ethics. It promotes an ethical work culture which not only results in better management of operations but also the customer trust.

Below are some of the salient points on ethics given in Walmart's annual report.

1) "Open Door" communication policy - The word "Open Door" communication symbolizes the encouragement given to fearless reporting of unethical events or conduct within Walmart (informally saying encouragement to "whistle-blowing"). This promotes the adoption of ethical behavior and processes by the employees and also sends a message to the employees that the unethical conduct wpn't go unnoticed. Further, the maintenance iof a global ethics helpine ensures that not unethical conduct and event goes unnoticed.

2) Clearly laid-out guidelines - The adoption and implementation of guidelines in the form of Statement of Ethics removes any confusion among the employees regarding the ethical behavior. Maintenance of separate code of ethics for senior financial officers ensures that ethical conduct is maintained in financial reporting and presentation.

3) Related-Party Transaction Policy - The reporting of material related-party transactions by senior officers and directors ensures that material procurement and disposal takes place in an ethical way.