Along these lines, Wal*Mart does not need to overhaul their systems and look for outrageous solutions. Rather, by continuing what they are doing and what has been working, they will be able to maintain their competitive advantage.Secondly, Wal*Mart has demonstrated the effectiveness of sticking with a strategy that works. For the majority of their existence, they lived by Walton’s key approach of putting stores in rural places away from large rivals in the industry and understanding the value of the dollar. Thus, while global expansion is a decision with tremendous potential, Wal*Mart must continue to expand with the same strategy it used to be successful for the past thirty years. Whether they open stores in Mexico or South America, they should allow each store manager to price products to meet local market conditions as well as place their stores in equivalently rural areas. By focusing on this and maintaining technological superiority and efficiency, Wal*Mart can build its brand name in these new markets, putting them in an improved relative position in the product/lifestyle curve (i.e. a return to introduction and growth as opposed to decline). Thirdly, there are areas both domestic and abroad relatively untouched by Wal*Mart: large cities. Though it may seem like untapped potential in these markets, it is not recommended to expand in these highly populated areas. The axiom, “If it ain’t broke, don’t fix it,” applies: If Wal*Mart were to do an about-face and start expanding in this form, it would send mixed signals about not only changes in the corporate strategy, but also about the future of this conglomeration of stores. This is especially poignant at this volatile time in the price of their stocks. They should also be extremely cautious in the acquisition of existing discount retailing companies. As the industry becomes more concentrated, Wal*Mart’s selectivity in large acquisitions...
