Wal-Mart Strategy Wal-Mart Has Enjoyed Essay

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Existing Wal-Mart consumers remain, because there is nobody to "trade down" to - Wal-Mart is already the lowest cost provider.

The reason why Wal-Mart has been able to succeed with this strategy is because they have always focused on the strategy. Their operational excellence is driven by strategic goals, rather than operational ones. Moreover, each operational goal that Wal-Mart sets directly relates back to its core strategy of being the low-cost provider.

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When operational goals support strategic ones, they are in general more successful. Porter's lesson is that oftentimes managers focus on operational goals without considering whether or not they support the firm's strategy. Operational success, Porter maintains, is irrelevant if that success does not support a viable long-term strategy for competitive advantage. Wal-Mart succeeds because its operational objectives are explicitly aligned with greater strategic goals......

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