Wal*Mart also has important resources and core competencies that they rely on. They depend on their own distribution centers and their vendor relationships. Wal*Mart has a well established brand name that means quality at a low price. They have established a reputation for being built on trust. They also have skilled knowledgeable employees and a quality management team. They have developed a good store reputation and are known for its technological resources such as their installation of the electronic data interchange which will be discussed later on. Wal*Mart also uses their own distribution centers. This gives them the ability to work with their own employees in no matter what production area of the store. Lastly, Wal*Mart has been recognized as one of the 100 best companies to work for in America. These are some of the resources and competencies that makes the essence of Wal*Mart unique in its ability to provide value to its customers.

With one of their main issues being sustained profitability, Wal*Mart is at a critical time in their life. They are no longer the hero, a place commonly reserved for competitors striving to be number one, because Wal*Mart is number one. No one can debate how effective they have been in getting here. Through their focus on superior technology and low cost leadership, Wal*Mart reigned supreme. Wal*Mart is classified as a discount store that sells general merchandise by charging gross margins of 10-15% lower than those of conventional department stores. To compensate, discount stores cut costs to the bone: fixtures were distinctly unluxurious, in-store selling was limited, and ancillary services, such as delivery, and credit, were scarce.

Wal*Mart led the industry in 1993, with $67,345,000 in net sales. Their gross profit was 24.9 and net income was 2,333. Their end of the year stock price had gone down slightly form the previous year to $25 per share. One might say that Wal*Mart has been a real player in the discount retail store industry and sustained its competitive advantage over its competitors. These numbers show us the great success that Wal*Mart has had over the past couple years.

Some topics in this essay:
Kmart Target, Product Codes, South America, Lastly Wal*Mart, Industry Analysis, Unfortunately Wal*Mart, Jewelry Food, Sam Waltonâ€a, Secondly Wal*Mart, COO Soderquist, distribution centers, kmart target, supplier power, discount retailing, information technology, barriers entry, own distribution centers, competitive advantage, own distribution, retailing industry, mover’s advantage, discount retailing industry, five forces model, electronic data interchange, wal*mart mover’s advantage,