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

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.