第13章 Game Theory and Competitiive Strategy.ppt

THREATS, COMMITMENTS, AND CREDIBILITY 13.6 How did Wal-Mart Stores succeed whereothers failed? The key was Wal-Mart’s expansion strategy. The conventional wisdom held that a discount store could succeed only in a city with a population of 100,000 or more. Sam Walton disagreed and decided to open his stores in small Southwestern towns. The stores succeeded because Wal-Mart had created “local monopolies.” Discount stores that had opened in larger cities were competing with other discount stores. Other discount chains realized that Wal-Mart had a profitable strategy, so the issue became who w