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Walmart Case Exercise
How was Walmart positioned in the retailing business? The case gives information about Walmart's positioning along several dimensions, and for some aspects you can compare its positioning to rivals Target and Kmart. Use tables as well as the case itself to answer the following:
Industry Average,
Discount Retailing
Explanation (about 400 words):
b. Activity Analysis. How did Walmart manage its activities to create the competitive advantage you describe in a? The case describes a number of important activities that help create competitive advantage at Walmart. For this exercise, describe 5 activities to fill in the table. In column 1, describe how Walmart manages each activity. There may be several different aspects to the management of the activity; show the most important for value creation. In column 2 and 3, indicate how Walmart's management of these activities changed its costs and customer willingness to pay, respectively. In column 4, assess the sustainability of this resource: to what extent could its value decline due to obsolescence or imitation and/or substitution by rivals? You may refer to the "What is Strategy?" article as well as the Barney article on sustainability in answering this.
Activity
1. How managed?
2. Impact on cost (quantify if possible) (↑,↓,no change)
3. Contribution to Wtp (↑,↓,no change)
4. How Sustainable?
1. Distribution (inbound and outbound logistics)
2. Procurement (purchasing, sourcing, supplier relations)
3. Information technology
4. Human resource management
5. Marketing and merchandising
Should Walmart enter online retailing? Re-draw the value bar for Walmart that you drew in Q 2a. To the right of it, draw a value diagram showing Walmart's value creation in the online segment. Your diagram should take into account your ideas about any needed changes in Walmarts activities from their current configuration as described in 2b. Does the price you drew in the first case deliver comparable value to buyers in the online segment? How about for Walmart? Explain your graph, and discuss whether you think Walmart should enter this segment of the market, it's likely competitive advantage in that position, and what adjustments would need to be made to its activity system. Your written answer should not exceed 500 words.
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