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Kevin explains why Walmart’s strategy is mistakenly assumed to be its significant purchasing power. Kevin explains the advantage that leads to the purchasing power.
The case is projected into the future to determine what is likely to happen to Toys-R-Us, their options for responding and the probable outcome.
Kevin flips the case around, by using Michael’s new knowledge of Walmart, to develop a response strategy for Toys-R-Us.
Kevin focuses on the first 2 minutes of the case to discuss how McKinsey partners respond to clarifying questions, pauses in the case and repetition of the case question.