ESB (2) Case: Wal-Mart Stores in 2003

Key: Local Extension, Franchise Protection, and Selective Expansion.

有人在课堂上问：…but Wall Street wants growth… Greenwald 让他大声重复一遍，然后高声宣布，Everybody, Attention. I want all of you listen to this. You are not the only saying so. People repeat this crap again and again! 他接着问到，Anybody tell me what happened when Wal-Mart’s (stock) price recently bounced? 陆续有人提到一次Wal-Mart 决定撤出德国，一次是砍去2/3 of its capital investment. Wall Street wants PROFITABLE growth!

For business like Wal-Mart, it is critical to be geographically focused (so as to capture cost advantage and customer captivity).

About where to grow:

1. Within Area of Competitive Advantage.
2. Edges of Area of Competitive Advantage.
3. Virgin Market with potential advantage.
4. Level Playing Field (last place, if have to).