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By offering low priced health care products and services it will provide Wal-Mart customers with value/savings, which will in turn provide them with a competitive advantage in the discount retail industry.
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In order to recapture these high growth rates it is important to understand what lead Wal-Mart to these high growth rates in the first place. When analyzing Wal-Mart externally you find that its 5 forces tend to have a positive effect on the company. The company has high barriers of entry, a moderate threat of rivalry with Target and Kmart due to its expansion of super centers, and its incredible power over all its suppliers because Wal-Mart purchases so many products, the suppliers have little negotiating powers, and finally Wal-Mart technically has a great amount of power over its buyers because of its product variety and low prices...
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