Reference no: EM132223350

Over the last seven chapters you have hopefully been reading each chapter’s “running case”- Wal-Mart. Given that this chapter concerns corporate-level strategy, it is appropriate that we tie together the elements of the running case to consider Wal-Mart's use of corporate strategies. It focuses on the different strategic choices that companies make with regard to horizontal and vertical integration, and further the arguments for and against horizontal and vertical integration.

Successful corporate strategy adds value by enabling the company to perform one or more of the value creation functions at a lower cost or in a way that allows differentiation and brings a premium price. For a company to be successful, its corporate strategy must assist in the process of establishing a distinctive competency at the business level.

Requirements: Using the Wal-Mart running cases from chapter 1 through chapter seven, conduct an executive summary describing Wal-Mart's corporate strategy in the following areas:

1. Describe Wal-Mart's use of vertical integration as they have grown both domestically and internationally. Given the text’s advantages and disadvantages of vertical integration, evaluate Wal-Mart's overall implementation that part of corporate strategy.

2. Describe Wal-Mart's use of horizontal integration as they have grown both domestically and internationally. Given the text’s advantages and disadvantages of horizontal integration, evaluate Wal-Mart's overall implementation that part of corporate strategy.

3. Do you believe there are any opportunities for Wal-Mart in any of new industry using diversification? While they have already done an outstanding job at diversification in the previous 10 years by adding supercenters and grocery to their industries, not to mention Sam’s Clubs, it could be argued that those are simply obvious extensions of their core retail business. What types of diversification would you suggest they consider? Explain.