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Word Count: 553
Wal-Mart is a lowest Price leader and they have a competitive advantage in pricing distribution center and store locations Wal-Mart keeps its promise of everyday low prices by having a smooth business cycle maintained by unbeatable distribution center supported by trucking networks and excellent store locations Wal-Mart maintains its slogan of Everyday low prices by keeping its merchandises prices low Through my analogy Wal-Mart has a competitive advantage of having constantly low prices is through having a solid distribution center that keeps its storage fee low cuts down items time retain on shelves and since the distribution centers are always within a 48 hours reachable area resupplying the goods for two or three stores within one truck load is not a problem This business cycle enables Wal-Mart to get its goods on time and cuts down on storage expanses and gets higher product discounts from suppliers and also minimizes backorders by buying its goods in large quantities and store in huge distribution centers All these cuts down from expenses allows Wal-Mart to gain greater bargaining power with its supplies which allow it to have a higher sales margin to play with against its discounters who rarely is able to catch up with Wal-Marts low pricing and strategy This fact makes Wal-Marts pricing of its items and distribution center as a truly sustainable competitive advantage Another competitive advantage is Wal-Marts excellent store locations Most of Wal-Marts stores are located in rural areas where populations are hardly enough to allow huge discounter firms to gain a profit However again through Wal-Marts already solid foundation of able to set low pricing on their products and support from their giant distribution centers Wal-Mart was able to still gain a profit in rural metropolitan areas where not many discounter stores have set foot yet this allows Wal-Mart to be able to monopolize in many towns in most metropolitan areas within United States Wal-Marts seems it will be able to
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