35 Walmart like Carrefour Ahold and Tesco competes in severa

3.5 Walmart (like Carrefour, Ahold, and Tesco) competes in several countries of the world, yet most shoppers choose between a radius of a few miles. For the purposes of analyzing profitability and competitive strategy, should Walmart consider the discount retailing industry to be global, national, or local?

Solution

Wal-Mart is the one who apply available retailing technologies, as it state the fixed cost which is used in the cost of distribution, advertising and maintains the store which is the main competitor with the cost of operations effectively. Wal-Mart is the only one retail store which has got added advantages for the economies of scale where the company is one of the most competitive one. Sam Walton’s was the one who made out these facts well in advance and establish control on the main core region and making targets for the weaker competitors, as it gave the core advantage in many cases.