[1] Evaluate the distinctive capabilities of Wal-Mart.

Answer: The distinctive capabilities of Wal-Mart is their sophisticated distribution

system. Distinctive capabilities are complex bundles of skills and accumulated knowledge,
exercised through organizational processes that enable firms to coordinate activities and
make use of their assets. Their distribution system is more efficient in the world. They
have the capability to sell quality goods and products at lowest price. They support
strategic distinctive capability which set them apart from their competitor.

[2] Explain how Wal-Mart’s distinctive capabilities were put into effect to provide
superior customer value.

[3] Was Wal-Mart able to strike to a balance between the company’s distinctive
capabilities and the customer value requirements in its market targeting strategy?
Explain.

[4] Evaluate Wal-Mart’s efforts to become a market-driven organization. Should

Wal-Mart do something more for the purpose of becoming market-driven? Explain.

[5] How much of Wal-Mart’s strategy do you think was planned at the outset, and
how much evolved over time in response to circumstances? What does this suggest to
you about the nature of strategy development?

Answer: I think some of the strategy was planned at the outset because the first starting
point of their business was strategic. Using the same strategies they expanded their
business across U.S and entered into Mexico. Because of different laws and regulations
they tweak their strategies a bit in every country. It will help them to keep a competitive
advantage because other countries don’t have stores like Wal-Mart.

The result of the store evolution is their grocery section. The slogan “everybody low
price” attracts more consumers. The company opened stores in rural areas as they realized
the market potential. By the 1990s, Wal-Mart was already the largest seller of general
merchandise in the United States. To keep growing, it started to diversify into the grocery
business. They also opened a warehouse club to expand its overall business. To make
profit from other countries, it began to operate internationally. Their store has become a
one stop shop to consumers.

With things always changing in society too, they have strategies to keep their competitive
advantage improved. Not all the plan the company implemented are planned. The
inefficient strategy developed led them to lose money and pull out. But still they evolved
with the changing circumstances. The strategies that it evolved are successful. Therefore,
the company should be flexible enough to adopt new strategies based on the changing
circumstances.