Reference no: EM132067933

Please respond to the following post with supporting references. 150 words for each scenario.

1. Lexus and Tesla have each adopted a mix of these strategies. They are both focused on providing a product that is a lower cost to operate with hybrid and electric models. Lexus is focused on providing a luxury hybrid vehicle that appeals to established people. Tesla on the other hand is appealing with the electric car to the younger generation concerned with the environment. Tesla has direct sale spaces in shopping malls, which alleviates pressure from customers to purchase the vehicle, and is widely advertised. Tesla has a focused differentiation strategy and low-cost provider. Lexus is also a low-cost provider aimed at a broader differentiation of customer than Tesla. (Edelstein, 2014).

2. Value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Walmart business strategy is based on 'everyday low prices' philosophy of the company. In other words, Walmart pursues cost leadership business strategy enabled by the economies of scale derived by the company in a significant extent. An efficient utilization of online sales channel contributes to the level of cost-efficiency of retail operations and about 75 percent of walmart.com sales come from non-store inventory. Constant improvements of assortment, price and access are basis of Walmart business strategy. In simple terms, Walmart strives to offer the widest choice of products for the cheapest price, along with giving customers the opportunity of choosing the most convenient channel to facilitate the purchase. Wal-Mart competitive advantage relies on cost leadership. Moreover, the strategic level management consistently aim to associate Wall Mart competitive advantage with price, access, assortment and experiment.