Summarize the case study

RUNNING CASE Walmart's Business Model and Competitive Positioning Walmart's business model is based on buying goods model in ways that would create a low-cost structure from suppliers as inexpensively as possible and then to allow him to charge lower prices. One business- selling them to customers at the lowest possible level strategy he implemented was to locate his stores prices. Sam Walton, the company's founder, devel- in small towns where there were no low-cost competi- oped strategies to allow the company to position itself tors, a second was to find ways to manage the value to keep operating costs to a minimum so that he could chain to reduce the costs of getting products from offer customers everyday low prices and continuous manufacturers to customers, and a third was to de- price rollbacks. Walton chose strategies to increase sign and staff store operations to increase efficiency. efficiency, such as having low product differentiation The task of all functional managers in logistics, mate- (Walmart chooses minimal advertising and low respon- rials management, sales and customer service, store siveness to customers) and targeting the mass mar management, and so on, was to implement specific ket. His discount retail business model was based on functional-level strategies that supported the low-cost/ the idea that lower costs mean lower prices, low-price business model. Walmart has made thou- Having devised a way to compete for customers, sands of specific strategic choices to allow it to imple Walton's task was now to implement the business ment its low price business model successfully