Wal-Mart has a proven track record of continuous expansion and incremental improvement. It achieved much of its success through ¡°building on¡± its existing strengths, i.e. leveraging its advantages through constant evolution rather than revolution. Technology, size and distribution each offer great advantages that Wal-Mart can leverage in both product and market expansion.
PRODUCT EXPANSION : The overwhelming size of Wal-Mart offers 2 major advantages in its expansion into new product lines. First, the economy of scale overcomes the difficulty of keeping initial cost of goods low that most companies face when taking up new product lines. Wal-Mart may ¡°build on¡± its existing variety of merchandise by purchasing through the same manufacturers. The second approach is that Wal-Mart can leverage its dominant market status by exploring the potentials of its current pool of consumers without the costly marketing campaign to allure new customers. If consumers in the......
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Approximate Pages: 2 (260 words per double-spaced page) |