Rewrite the following, but this time, You need to have more discussion on the strengths of Walmart and not major on the weaknesses in your discussion. Also, go ahead to cite an instance where Walmart had utilized one of two of the advantages of economies of scale to increase their market share.

Ownership
The ownership component within Dunning’s eclectic paradigm (OLI) framework emphasizes the assessment of a firm’s competitive advantages based on its unique resources or capabilities (Dunning, 2000). These competitive assets determine the extent to which a firm can exploit its ownership advantages or disadvantages in the foreign market. In the case of Walmart’s investment opportunity or operations in Italy, it is essential to evaluate its ownership strengths and weaknesses, and also examine the competition in the Italian retail sector.
Walmart, as the world’s largest retailer, has historically leveraged its considerable resources and capabilities to achieve global success (Fortune Global 500, 2021). Some of these resources include its economies of scale, vast distribution networks, and advanced supply chain management techniques (Pappas et al., 2020). In theory, these ownership advantages should offer Walmart significant growth potential within the Italian market. However, this perspective may overlook some critical limitations that could challenge Walmart’s ability to replicate its success in Italy.
One of the ownership disadvantages Walmart may encounter is the difficulty in adapting to the culturally-sensitive Italian market. Unlike the American retail landscape, which emphasizes low prices, convenience, and a wide selection of products (De Nisco et al., 2014), Italian consumers place greater value on the quality and authenticity of locally-sourced products (Pellegrini et al., 2016). Walmart’s primary competitive advantage, its low-price guarantee, may not resonate as strongly with Italian consumers (Javalgi et al., 2011). This suggests that Walmart may need to reevaluate its approach to attract Italy’s consumer base.
Furthermore, Italy’s retail sector comprises numerous small, family-owned businesses that have survived despite the growing presence of larger retail chains, reflecting the importance of tradition and loyalty to the Italian market (Caputo & Pellegrini, 2019). As a foreign entrant, Walmart faces the challenge of competing against these deeply-rooted, domestic retailers (Hitt et al., 2011). Despite its ownership advantages, Walmart’s American identity may pose a barrier to success in Italy.
The Italian market is also characterized by a highly competitive and concentrated retail sector, with well-established players like Coop Italia and Conad leading the market share (Statista, 2020). In such a competitive environment, Walmart must differentiate itself through strategic alliances, mergers, or acquisitions to gain a foothold in the market. For instance, the company worked with Grupo Éxito in 1994 to enter the Colombian market (Gaviria & Meléndez, 2006), which could serve as a reference for the Italian market. Nevertheless, Walmart’s ownership advantages alone may not guarantee success. According to Buckley et al. (2007), a firm’s international expansion depends on adequate combinations of ownership, location, and internalization advantages.
In Sum, although Walmart possesses considerable ownership advantages, its success in the Italian market may be limited by several factors, including cultural differences, the entrenched nature of local businesses, and the highly competitive landscape. A comprehensive analysis of Walmart’s investment opportunity or operations within Italy requires a critical evaluation of these ownership factors, considering both the advantages and disadvantages that may emerge in the foreign market.