Chapter 11 Strategic Entrepreneurship in the Health Care Industry: The Case of Wal-Mart

Abstract

Wal-Mart has had a major impact on both retailing and the U.S. economy in general through its supply chain management, efficiency, cost-containment, outsourcing, and market power. We examine Wal-Mart's strategy in retailing and its likely impact as it begins to make incursions into health care from the perspective of strategic entrepreneurship (SE) theory. Wal-Mart's resources including an expansion focus, low-cost culture, supply chain management, adoption of new technology, and market intelligence are described and related to the SE model. In addition, Wal-Mart's current health care services and target markets are outlined. This is the first paper which comprehensively outlines the competitive threat which Wal-Mart poses to traditional health care providers and insurers. The paper concludes with implications for the health care industry, future predictions, and potential future research.

Citation

Fottler, M.D. and Malvey, D. (2007), "Chapter 11 Strategic Entrepreneurship in the Health Care Industry: The Case of Wal-Mart", Blair, J.D., Fottler, M.D., Ford, E.W. and Tyge Payne, G. (Ed.) Strategic Thinking and Entrepreneurial Action in the Health Care Industry (Advances in Health Care Management, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 257-278. https://doi.org/10.1016/S1474-8231(06)06011-3