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By successfully adopting a cost leadership strategy over the decades, Wal-Mart has emerged as the largest company (in terms of revenues) in the world. The case examines in-depth, the key elements of this strategy followed by Wal-Mart. It discusses how the cost leadership strategy generated above-average returns for the company and acted as a defense against competition in the industry. Finally, the case discusses the plans and challenges faced by Wal-Mart in early 2004. This case can be discussed alongside a chapter on Porter''s generic competitive strategies as found in any standard business strategy textbook. The case is designed to help students: (1) understand the important components of Porter''s cost leadership strategy and examine how it has been applied by a company; (2) understand how a company can emerge as an industry leader by effectively implementing a generic strategy; (3) understand how the low-cost position of a company acts as a defense from the competitive forces in an industry; and (4) understand the strategies implemented by a company to sustain its cost leadership position. The case is intended for MBA/PGDBA students as part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.