You are on page 1of 2

Synthesize and present key analytical findings about where Walmart is exceling and how

or where it can improve.

Wal-Mart strengths reflect these factors where it is excelling. It is known as leading retailer in
the world and apart from Amazon, no other major competitor threat is present to the company. it
gains the benefit of economies of scale (Jurevicius, 2019). It also uses efficiently its resources
and earns huge profit by implementing best practices. it experiments with new store formats or
experiments in its stores without much risk. It also has great bargaining power against suppliers.
But the areas where it is doing badly are also relevant to mention. It does not foster its brand
image (Frue, 2018) as it has been severely criticised to manipulate its employees and practice
unethical standards. The next issue is practicing cost leadership approach and earning thin
margins on sale of products. Its business can be easily copied by the other competitors. another
disadvantage is competitive intensity that may jeopardise its earnings (Smithson, 2019).

Propose two creative yet viable corporate-level strategic alternatives. Critique the pros and
cons of each alternative utilizing your analytical findings.

As the analysis reveals, that Wal-Mart is only considering cost leadership strategy to sell its
products, it is required that differentiation strategy and focus strategy should be considered by
the company. differentiation strategy benefits to the company are illustrated here. It can create
high barriers to other competitors to copy the business model of the Wal-Mart company. it
should enhance in-store experience to the customers and should make the shopping fun
experience for them. differentiation strategy can be used to change the business model to reap the
benefits. Desired changes can provide high resilience to the Wal-Mart, and earn more loyalty
from customers. It can focus more on digital technology to compete well against Amazon in
innovative ways. The distribution channel should use innovative ways to distribute the products
such as using drones to distribute products in more personalised way. There are various such
options available for Wal-Mart company to practice differentiation strategy. The cons of using
differentiation strategy are changes in target segments and changes in preferences by the
customers that may hamper the objectives of using differentiation strategy.

Another strategy to use is focus strategy and the Wal-Mart company should find out more
attractive niches to offer them unique products tailoring to their needs. Such approach can assist
the company to create high barriers for new entries in the market and win confidence of the
customers in its products and services. This strategy can create strong ties with the target market,
and the Wal-Mart company even charge a premium for providing products and services. The
competition will be also limited. Wal-Mart by serving a particular niche in the market can gain
expertise to serve that niche in a better way than other competitors. disadvantages of this
corporate strategy are limiting future growth because of small niches, and the demand of product
and service initially. Niche marketing does not reduce the threat of disruptions as well (Gaille,
2018) but these two strategies can help Wal-Mart to face competition effectively and increase its
presence in the market.

Select and defend the pursuit of one of your two viable alternatives. How does this
alternative align with the firm's mission, vision, and values? How can management employ
this alternative to create competitive advantage for the firm? Suggest next steps.
It is better for Wal-Mart to go for differentiation strategy as it is already functioning at world
level and its brand is well known that provides it good defense against competitors.
differentiation practices in business model can add more values of business processes and
satisfaction to the customers. Thus the differentiation strategy should be used. To implement this
strategy, business model and business processes should be changed that are easily copied by the
competitors and not paying good benefits. Offering customer's satisfaction requires better in-
store experience and thus, improving the customer service at bill counter or in other areas of the
store can improve the competitiveness of the company. improving digital experience for the
customers is another way where the Wal-Mart company can create a differentiation. Distribution
channels using Drone technology is another way to differentiate its offerings. These steps can
ensure that differentiation strategy is well implemented by Wal-Mart company.

Based on your analysis, identify a business unit or activity within the corporation that you
would suggest defunding in order to finance your strategic alternative, or provide an
alternate funding source. Defend your selection.

The analysis of the company reveals that discount stores do not perform well for the company.
the number of discount stores is reduced and many stores are closed (Adamkasi, 2018).
Therefore, such stores should be shut down and the fund used to run discount stores should be
used elsewhere in more promising business to support the differentiation strategy
implementation.

Given your overall proposal, how do you suggest the company promote its culture, vision,
and mission to maximize its chances for success in the industry? How might the company
develop its servant leaders to endorse and exemplify tenets of the Christian worldview
(CWV) in the workplace? Propose and defend at least one significant leadership initiative.

The company first, considers the ethical standards and employees treatment to promote the work
culture. The servant leadership is proper for this purpose and to implement this leadership, it is
imperative that management must practice active listening activities and demonstrate empathy.
Management should offer delegation of power to employees for decision making and practice
participative approach and two way communication. These steps can ensure that servant
leadership approach is established. For this purpose, leadership initiative of 'Walk the talk' must
be practiced where whatever ethics and guidelines leaders propose must implement in their daily
practices. this can ensure that the leadership is effective to promote friendly work environment.

You might also like