Walmart's key strength is that it is a cost leader. Michael E. Porter’s model illustrates that a company uses a generic competitive strategy as a general and basic approach to effectively compete against other firms in the industry. Walmart’s success stems from that fact that it doesn’t have just one competitive advantage, it has many competitive advantages. It measures success in terms of sales and dominance over competitors. They offer the lowest prices by cutting out the expenses that other retailers are known for. Read More. Wal-Mart’s competitive strategy is to dominate every sector where it does business. Walmart’s focus is on low cost, medium quality products, but to achieve the competitive edge over its competition, Walmart has to sell at costs lower than its competition. Case Study: Wal-Mart”™s Competitive Advantage. One can define competitive advantage as what a company may offer, or may perform better, that its consumers hold dear but its rival competitors cannot compete. This is demonstrated through. Walmart has vehicles for transportation, which helps in improving the efficiency of its supply chain. The company has extensive physical resources in the form of assets (McGrath, 2013). Physical resources are another factor that has largely contributed to Walmart’s sustainable competitive advantage. Everyday low prices always yeah there's a lotta stores are competitors that of course were you'll always find a lower price on one or two items. Walmart stores are known for their massive size and their vast selection, but if there is one thing that defines the company, it is low prices. Long a disruptor in the retail space, Walmart has historically managed changes in the external environment to gain a competitive advantage. A cost leader is a firm that can provide goods to the public at the lowest possible prices. Walmart reinforced its competitive advantage by locating its stores around its regional distribution centers. Low cost strategies. For 53 years, Walmart has successfully established and maintained a competitive advantage over its rivals. Generally, Wal-Mart does everything it can to win over competitors. All these factors add up and result in increased growth of Walmart each year. Walmart achieves lowest cost due to its excellent supply chain. Walmart went on to open stores in all nearby small towns very close to each other. Walmart is able to achieve this by using its large buying power to negotiate deals with manufacturers and by sourcing many of its products from low-cost countries like China. The main strategy behind Walmart is “Everyday-low-prices”. Walmart has also been able to increase its customer scale as well as market share because of the online shopping that Walmart has introduced and is able to compete against other big retail giants in online retail markets like Amazon. In Springfield, Missouri, it had 40 stores within 100 miles. 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