Principal Functions and Value Chain

Before answering this discussion question you will need to conduct a review of the Walmart Stores, Inc. Case on pages 487-501 of the course textbook and any additional resources necessary to conduct an industry analysis on retail sales industry.

Before writing your response, using the textbook and knowledge you have about the Walmart, complete their industry analysis.

• Identifying the principal resources and capabilities
• Assessing their strategic importance in terms of the two major determinants of imitability: transferability and replicability
• Assessing the strength of the company in these resources and capabilities relative to competitors
• Linking the resource analysis to the strategy being pursued
• Assessing the sustainability of the firm's competitive advantage

Once you have conducted your analysis provide your research and also answer the following questions:

• Which should be the primary basis for formulating strategy: the external market (customer requirements in particular) or the firm's resources and capabilities. Please explain.

• In which market segments, are Walmart's capabilities and strengths likely to be most effective? What are the implications for how the firm should compete?

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