Essay About Walmart External And Such Abuses

Walmart External and Internal Audit
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Strengths Core competency/Cost Leadership- Walmart is known for their “everyday low prices.” This sets them aside from their major competitors such as Target.  Walmart strives for “saving people money so they can live better.”  With the cost leadership strategy in effect, Walmart is ensured a steady and returning flow of customers to their stores.  That understood, Walmart has a comparative advantage over their competition.  Consumers are able to feel better about their purchases knowing they are at a discounted price.  Walmart is therefore given a rating of 4 and weighted score of 1.0 in this category.  Economies of Scale- Walmart is rated a 3 with a weighted score of 0.3 in this particular category.  Being the giant that Walmart is, they have a very large scale of operations.  This therefore gives them strong supplier purchasing power and the opportunity to reduce prices.  With their vast amount of products they can spread their fixed costs out lowering the price of the products. “Higher economies of scale results in lower prices that are passed to consumers” (