Businesses Competitive Strategies Wal-Mart and Tesco Explain Essay

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Businesses Competitive Strategies

Wal-Mart and Tesco

Explain why the strategies, which they have chosen, are appropriate and describe the capabilities and competencies, which would be required for each of the two business units?

Wal-Mart strategy to maintain low prices has resulted coveted success comes and the eventual use as a cost advantage of increasing its stock volume. This has resulted in low costs and increased prices. This cost-oriented focus has been logistically useful. The company is leading the path of developing sophisticated procedures that drive down the cost of logistics early enough compared to other companies. Wal-Mart has enhanced these capabilities and systems in regions all over the country to a point that it is impossible to slow down or stop the rural-based chains (Langabeer & Napiewocki, 2011). This strategy has enabled different markets to have access to products produced by Wal-Mart: they can easily create new services and products. The clear idea of distinctive brands focused on identified market segments is part of Wal-Mart's core capabilities and competencies: they can enter into the non-food and food retailing markets. With the difficulty of being imitated by competitors, the company's core competencies are competitively unique. This indicates that product differentiation is essential. For instance, the company has received recognition as the best food retailer company in the U.S. (Barrar, & Gervais, 2006).

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There is a good structure at Wal-Mart, which collaborates with the systems thus empowering a strategy of low prices. The company's management structure is based on an efficient design, which enables it to engage in the elimination of regional offices and operations based at home. Wal-Mart operates on an efficient structure of management that enables them to do away with their regional offices (Rainer & Cegielski, 2011). They plan and carry out all their operations from their home office. Using this structure, Wal-Mart has saved billions of dollars every year. When the company engages in combining structure, systems, and sales, driving traffic through convenience and strategic location of store, it attains oiled and highly effective company that cuts costs to a minimum. This is then transferred to the end consumer thus fulfill the company's strategy (Hoffman, 2000).

Tesco has employed the differentiation strategy providing products and services with unique features thus adding value to the customer. The company has created brand loyalty in their products and services thus the inelastic prices to the end consumer. Volumes of technology offerings, product, customer service, and special features are the popular strategies if attaining differentiation. Tesco has pursued dual strategies of differentiation and cost leadership that has resulted in the increased attention on quality customer service. The….....

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