Numerous factors associated with positioning and differentiation cause Wal-Mart to dominate the retailing industry in America. In addition, Wal-Mart does not make known its weaknesses. Differentiation is one major strategy that Wal-mart uses to capture the market. In addition, it has other two generic strategies namely focus strategy and overall cost leadership. Wal-mart managers strive to keep it unique, distinctive as well as identifying key factors that may lead to its success. The firm’s particular capabilities and resources are significant in showing the performance of the firm. The company is able to compete heterogenically through its reliable performance and functionality. Its infrastructure is firm and its human resource is well equipped with professionals in management and is also technologically equipped as well.
Wal-Mart is in possession of powerful RBV with financially and economically very strong such that it can stand still during critical times. It operates on a low price strategy which enhances trust among the clients. The strategy lies in cutting the price as far as possible and increasing the number of sales thereby increasing profit. Thus, the customers obtain the goods at low price after Wal-Mart purchasing the goods at lower prices. The competition in the market is thus increased and Wal-Mart competes till it is dominant in the market against all its competitors. The company is seriously and rapidly expanding as one of its strategic goal. In addition, Wal-Mart has merged as well as acquired many international stores such as ASDA in UK. The far flung network Wal-Mart has established has ensured its interaction with almost every locality within US in addition to impacting this locality. Wal-Mart has a takeover strategy that keeps the company at the forefront during its entry into the new market. The number of competitors is similarly reduced. Hence, Wal-Mart has achieved strategic differentiation and positioning for most of its services thereby making it very competitive in the market hence making more profit (Parnell & Lester, 2008).