Wal-Mart Brand and Service

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Walmart Competitive Advantage and Quality Name Institutional Affiliation Walmart competitive advantage The competitive advantage of a firm is what differentiates a company from the others regarding delivery. It is what positions the company’s goods and services strategically in the consumers’ minds. Walmart is a global brand which faces a myriad of competition in the daily course of business. The firm has, however, been successful in most instances making sales of over 50% in the industry. For the company to achieve these transactions, it relies on its competitive advantage as similar products are offered in the market by competitors. Walmart competitive advantage is cost leadership coined as the marketing communication message: Everyday low prices. Walmart achieves cost leadership by applying mechanisms such as the economies of scale, convenient means of purchase and improved assortments of goods (Humberto et al, 2014). Economies of scale are the cost benefits which a firm derives from a vast size. Walmart is the most significant retailer in the world and as such has managed to obtain a network of suppliers in every corner of the world. The store boasts of over 5,000 stores globally and thus obtains significant bargaining power with the suppliers. It, therefore, receives its products at a cheaper cost enabling it to sell at a lesser price. Its size additionally incases its connectivity, and thus its distribution becomes less expensive as some of the products will not be transported. Its presence in most parts provides the firm with enormous amounts of information about consumer behavior (Humberto et al, 2014). The company thus manages to spread the desired

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