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Examining Competitive Strategies (Essay Sample)


Our course textbook, chapter 5, discusses “The Five Generic Competitive Strategies”: Low-Cost Provider Strategy; Broad Differentiation Strategy; Focused Low-Cost Strategy; Focused Differentiation Strategy; and, Best-Cost Provider Strategy (see also Figure 5.1). In this forum, you need to locate two scholarly (peer-reviewed) journal sources that investigate any one generic competitive strategy from the perspective of organizations in the same sector. In other words, use research/scholarship that deals with one generic competitive strategy from one sector. More than one organization may be involved, but both articles need to deal essentially with the same area of generic competitive strategy in the same sector of organizations. Here is a great opportunity to investigate one or two of the businesses that your utilize in your personal life, but who represent one of the five competitive strategies. You may either use two articles about the same company, or two different companies—just make sure they fall in the same category of competitive strategy so that you can effectively assert why they are succeeding at what they are doing. Suggestion: a SWOT analysis could be helpful, as based on the articles you select, depending on the depth of information available (SWOT: Strengths, Weaknesses, Opportunities, Threats). Remember to use only scholarly articles (minimum two). However, three total scholarly sources are required with your post, so you may utilize your textbook as needed to support your informed assertions. Instructions: Your initial post should be at least 250 words, and contain three scholarly citations/references (two from peer-reviewed journals).


DQ#1: Examining Competitive Strategies: Low-Cost Provider Strategy at Wal-Mart
Wal-Mart is a low-cost provider that is also a market leader in the retail sector, and this strategy has been effective as the company has maintained a competitive edge over the competitors. Even in cases where other retail businesses try to duplicate Wal-mart’s strategy, the company relies on the economies of scale to sell at lower prices. Charging low prices has resulted in the retail giant expanding more rapidly compared to the competitors at other times, the source goods from low-cost manufacturers (Basker 2007). Wal-Mart also has a wide geographic presence that allows it to diversify risks while maintaining the market share in diverse operating markets (World Market Intelligence, 2013).
Following the low-cost strategy has at times led to accusations that the company circumvents laws on minimum wage. Legal proceedings resulting from the company’s perceived malpractices related to minimum wage laws have hurt the company’s brand (World Market Intelligence, 2013). There are declining profitability ratios including margins demonstrating the company’s inability to build upon previous growth.
The sheer scale of Wal-Mart means that’s that it is able to rely on direct global sourcing for large volumes of good...
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