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1. What is the business-level strategy of Wal-Mart? Differentiation or cost leadership? According to the case, what does Wal-Mart do in order to implement its business-level strategy?
2. Discuss how significantly each activity contributes to Wal-Mart's competitive advantage. Use the six criteria of good resources to evaluate each activity or resources associated with the activity (Valuable, rare, inimitable, nonsubstitutable, slowly depreciating, exclusively appropriated by Wal-Mart).
3. Differentiation, while increasing value, tends to increase costs. Cost leadership, while reducing costs, tends to decrease value. In other words, a particular activity oriented toward one type of business-level strategy always has an undesirable side effect. Look at Wal-Mart's activities again and discuss any unintended side effect that may be generated from those activities.
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